Communication is the key in performance appraisals.  It is critical to set expectations and communicate better across all stages during the performance appraisals.  It should get reflected well on the final stages – paper distribution as well.  Typically, the employee appraisal revision letter is the last step in performance appraisals.

By this time, HR has all the recommendations from the managers; HR has worked with the management on the revision percentage and finalized everyone’s numbers.  Now, this needs to be communicated to the individuals.  Typically, this letter would have following elements:

–  Welcome/introductory note for the letter

–  Designation related information

• Congratulatory note to be included if there is a promotion

–  Salary revision related message

• Percentage rise
• Any base corrections
• Any bonus message

–  Closure message

• If you have a non-performer and setting performance improvement goals, make sure that you state them clearly along with the deadlines.

While the above can be different elements, these would change from person to person.  For example, revision letter for a star performer would be different from people who are average performers/non-performers.

HR needs to be really careful in making sure the message is communicated well and taken in positive sense across all segments.  They have to carefully draft the letters and hand-over to the employees.  This takes time.  But, it is an important step in the entire appraisal process.  HR should necessarily invest the time required for completing this task properly.

Best practices:

–  Make sure that the message communicated in the letter is positive and objective.

–  Clearly spell out the salary revisions, percentage hikes and also specify what the final number is.

–  If there is a promotion, make sure you give some small token gifts, such as chocolates.  It need not be expensive; but, can communicate a congratulatory note.

–  Make sure you get an agreement from the employee on the numbers.  Take their signature back on the copy.