Appraisal Letter format

Do you need to provide an appraisal letter to someone and need help with it? No problem, this article would help you by broadly covering the below topics

  • What is an appraisal letter
  • Types of Appraisals
  • How to write appraisal letters
  • Mode of communication for appraisals
  • Who should appraisal letters be shared with 
  • FREE Samples

Meaning of Appraisal 

According to the Cambridge dictionary, Appraisal is examining someone or something to judge their qualities, success, or needs. For our context, we are considering it as an Appraisal done at the workplace.

What is an appraisal letter? 

In a more contemporary understanding, Appraisal letters mean appreciation letters in general. 

The objective of Appraisal Letters

Appraisal letters should be written when HRs/company management need to appreciate employees and provide them appraisals. Providing timely appraisals has become necessary as the battle for talent gets more fierce. Retaining their top performers is a must for organisations to retain their top performers and an appraisal from management is a good step in that direction. Appraisal letters reinforce the idea that individuals win and go a long way in keeping the team engaged in the workplace. The appraisal letters also improve the HR KPIs of an organisation (Employee Engagement, attrition etc.) and contribute to the company’s overall success. There could be two types of Appraisal.

Types of Appraisals

  • Appraisals without a monetary component
  • Appraisal with monetary component
  • Appraisals without monetary component: These are the easiest ways to keep your team engaged. A simple “Great Job done” and “Thank you for your efforts” could motivate your team and keep them engaged in the role. Besides, these do not require unnecessary financial approvals and can be practised by all managers/HR. These appreciation letters are, in most cases, given by managers directly. 
  • Appraisals with monetary component: In some cases, appraisals may be coupled with a financial component. These financial components can be in the form of employee gifts, performance bonuses Or an increment. In most companies, this is an annual exercise commonly referred to as Performance Appraisal OR Employee Appraisal. Providing appraisal letters to employees is the final stage of a formal Performance Appraisal Process.

How to write Appraisal letters? 

  • Mention the specific activity/impact of the employee’s effort: A lot of times, simply saying “Good Job” is not enough. The detail of the Good work done and its impact on the team/business is generally more effective. Example:
  • Keep it personal: In a world of “so many google searches”, it is imperative that you keep the Appraisal personal to drive more impact. 

Where to write Appraisal letters? 

  • Appreciation letters without any monetary component can be distributed in an informal setting. Here are some ideas for the same
    1. They can be shared with the individual and CC to other team members by the manager. 
    2. They can also be distributed via WhatsApp groups OR other modes of communication between the team members.
    3. Weekly/Monthly team meetings/review calls are a great place to appreciate the team members.
  • Appraisal letters with a financial component are mostly provided privately by the HR/management to the employee via an email/hardcopy. Kindly note that these letters need to be formal, for example, written on company letterhead. The financial component of the Appraisal should be outlined clearly and when and how it would be paid. For example, a performance could be paid once on a particular date, OR an increment could be valid w.e.f. from a particular date etc.)

Who should appraisal letters be shared with 

  • Appraisals without a monetary component should be shared with as broad an audience as possible. They should be celebrated widely in the organisation. This would ensure that the star performer feels celebrated in the organisation and others get motivated to perform equally well. 
  • Appraisals with a monetary component should be shared as per your company policy. In most cases, these are shared privately with the employees by the HR/management.

Free Samples

  • Appraisal without monetary benefits: Thank you Rahul for your help in creating the presentation for Zigsaw. The clients were particularly impressed with your slide on “Impact on similar businesses”. They loved the presentation and your “Out-of-box” thinking might have just won us a critical deal. 
  • Appraisals with monetary benefits can roughly follow the below structure.
  1. Greet the employee
  2. Give the context: 
    1. You might know that we grew by 50% last year. We would want to reward our top performers who made it possible.  
    2. You might be aware that we went through some turbulent times last year. We would want to reward the top performers who stood with us and helped us navigate tough times successfully. 
  3. Make the person valued: We would like to mention that you, <<name of employee>>, have been an integral part of our success last year. Hence, I would like to present to you a small token of our appreciation for your hard work in the past year.
  4. Details of Appraisal: Gifts, Performance Bonus, Salary revised etc. 
  5. Align for future company vision: I would like to take this opportunity to share with you that we are all geared for the growth that lies ahead of us. As we scale new heights in the coming years, we are love to see you as a partner of success in the coming years. 

Here’s another sample from Razorpay




Appraisal Letter – CONFIDENTIAL

Dear [Employee_Name],

Employee ID: [Employee_ID]

[Company_Name] has and continues to move forward because of your hard work and contributions. [Company_Name], as always, stays committed to its people first approach and puts you and your contributions at the forefront.

In continuation to that thought and philosophy, we are taking this opportunity to congratulate and recognise you for your contributions and thank you for all your efforts.

In recognition of your performance and contributions to [Company_Name], we are delighted to promote you to [Employee_Designation] and revise your Cost to Company to INR 330000, effective from [Appraisal_Date] The break- down of your CTC is mentioned in Annexure A.

We wish you tremendous success in the coming years and look forward to your long-term association and contributions to [Company_Name].


[HR_Name] [HR_Designation]

Annexure A

This is your expected monthly salary structure.

Salary ComponentAmount
Basic Salary13,750
Special Allowance4,125
Leave & Travel Allowance2,750
ESI Employer Contribution0
PF Employer Contribution0

Note: You will receive salary, and all other benefits forming part of your remuneration package subject to, and after, deduction of TDS, PF, ESI and professional taxes in accordance with applicable law.

How can foreign companies find Talent in India?

Five reasons why Companies look to hire Indian Talent

A simple LinkedIn search with the below keywords for profile searches keeping the Location as India fetches the below number of results

  1. Java: 23,40,000
  2. Sales: 45,60,000
  3. Marketing: 53,70,000

The above numbers showcasing the number of potential hires in India are astounding, mainly because only less than 6.5% of the Indian population is on LinkedIn. 

The Talent in India is aplenty that international companies can use to their advantage.

  •  Expected Pay: Average salary candidates expect in India is much less, in some cases even less than 10% of their international counterparts

Java DeveloperUS$ 6259US$ 93118US$ 58717
SalesUS$ 3568US$ 57789US$ 39082
MarketingUS$ 3816US$ 74464US$ 39101


  • Good penetration of English in India allows English-speaking employers to connect effectively with their remote workforce. 

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  • Indians are hardworking: Coming from a conservative culture also makes Indians someone ready to listen and do more of what is expected. Also, they are more disciplined in general. 
  • Indians are problem solvers, and they love doing it. Besides, Indians are also hungry to acquire new skills. Besides, India produces way too many engineers, which makes it very lucrative for foreign companies to recruit from India.

Can a foreign company hire employees in India?

Absolutely, Yes. Foreign companies can hire and employ Indian employees directly without the need of any 3rd party.

How do companies hire remote Indian Talent?

  • Sourcing: Relevant candidates can be found via LinkedIn, Job-boards, OR via Recruitment Companies in India
  • Screening & Coordination and engagement during the Interview process: It is better to keep all interview rounds as video interview rounds to ensure that there are no fake candidates in the process. Also, connecting with the candidate on LinkedIn is recommended to ensure that the candidate is exclusively employed with your organization.
  • Employee Management: Companies can hire employees directly OR hire them on the payroll of an Indian company. 

Here’s a recruiting from India checklist 

  • Make sure you set up a minimum of two interview rounds (a minimum of one functional interview and 1 HR discussion) with the candidate before making an offer. Make sure that the below questions are covered in the HR Interview.
    • How would the candidate manage the time-zone difference (if any and if required)
    • Infrastructure: In the case of Work from Home, it is best for HR to confirm that the candidate has the required resources Examples
  1. Uninterrupted internet connection, 
  2. Laptop as per the configuration required by the company in case the company is not providing laptop on joining, 
  3. Others include comfortable seating (desk/chair), mobile, etc. 
  • Holidays: It is best to discuss your company’s leave calendar and policy at the start. 
  • Growth opportunities: The Indian market is booming (especially IT), and if HR can showcase company growth and potential project growth for the employee, it might have a very positive impact on the candidates’ performance
  • Mode of salary transfer. It is imperative to communicate in advance about the mode of salary transfer and transfer deductions if any. The tax liability rests with the individual, and HR should ensure that it is also mentioned in the candidate’s offer letter.
  • Open a line of communication: The HR interview is a fantastic place for HR to build a rapport with the candidate. Suppose the selected candidate was working with an Indian company earlier. In that case, HR must proactively communicate to the candidate that there might be cultural differences and differences in “how the company works”. Ask the candidate to expect that and make them comfortable to be able to communicate if they face any challenge. A 1, 3, 15, 30, and 90 days feedback could be an excellent idea in this scenario. 

Why do Indian employees prefer international organizations? 

 Disclaimer: Kindly note that the below points are blatant generalizations and might not hold in some scenarios. However, here are the top 4 reasons why Indian employees prefer international organizations

  • Better pay: Indian candidates typically expect a 20-30% hike while switching to the Indian market. However, they may expect a 30-50% hike when switching Jobs to a company with an office outside India. 
  • Work from Home: After covid, as more employers start calling employees back to the office, some of them prefer a Work from Home regime and can easily switch to an international organizations
  • Increased Work-life balance: Some Indian companies expect impractical working hours, and their foreign counterparts offer a better work-life balance. 
  • Exposure & future career opportunities: Working with international employers gives them better exposure and opens up opportunities for several other Jobs. 

When not to consider hiring a remote Indian employee

  • When your complete team is from a particular geography, a manager from the same culture would understand the team better, and it might be counter-intuitive to hire a manager from a different culture altogether.
  • Sales roles where relationships play a significant role: Every culture has nuances that might take some time for outsiders to adapt. For roles that require meeting customers in person, it might be efficient to hire a local candidate.
  • In cases where proximity with the team can be more efficient, remote hires might not be the best option.

Have questions related to recruiting from India? Let us know in the comments below and we will be happy to answer them