What is an employee appreciation letter?

An employee appreciation letter is an email or business document that demonstrates your gratitude for an employee’s efforts. Its purpose is to acknowledge how your employee has performed beyond your expectations, while motivating your employees to continue their hard work.

When you write a ‘thank you letter’ to your employee, they can feel valued by you and the company. The act of kindness gives recognition to professionals, especially those in large organisations, whose work ethic can go unnoticed. When an appreciation letter comes from a business leader, the acknowledgement can feel particularly personal and special, which can lead to employees wanting to impress their employer further.

Why are appreciation letters for employees important?

Employee appreciation letters can be important because they make employees feel appreciated, improving morale and maintaining motivation in your workforce. Below are a few reasons why making a habit of sending a ‘thank you’ letter to your employees is so important.

Improves job satisfaction

An appreciation letter conveys respect for your employees. Sending one on behalf of the company can improve their outlook on you and your organisation. This builds loyal working relationships, leading to a greater sense of belonging to the business. When employees feel recognised, they may be more likely to produce work that meets your standards. Their motivation can shift from external rewards to internal job satisfaction.

In the long run, this can potentially decrease employee turnover too. Recognising their efforts contributes to their continued success.

Increases productivity

When you express gratitude to your team through simple gestures such as an appreciation letter, you encourage them to continue to produce optimal results. This form of positive reinforcement sets a bar that employees may want to strive towards and go the extra mile in their personal communication and customer service. It can challenge them to pay greater attention to detail, reduce mistakes and work independently to solve problems.

When employees become accountable for their work, this motivates others to do the same. It can lead to fewer issues and an overall increase in productivity. You can explore whether your appreciation letter has inspired greater productivity in your employee during their next performance review.

Boosts morale

At some point, employees will face setbacks in the workplace. However, your personal support can help them restore their confidence more quickly. Recognising and appreciating employees’ efforts can serve as a source of inspiration, motivating others within the organisation to uphold similar standards. This hard work, in some cases, could lead to employee promotion.

An excellent method of encouraging your employees is by writing an appreciation letter to them. It’s a simple yet often underrated gesture that can boost morale. As a leader, the gesture shows care for your employees and your dedication to maintaining the health and wellbeing of the workplace.

How to write an appreciation letter

You can write a letter of appreciation via e-mail using the following step-by-step guide:

1. Address the recipient personally

Start by addressing the recipient’s name and mentioning their specific contributions. This personal touch makes the message more meaningful and sincere.

When writing an appreciation letter, sometimes employers use templates or reformat letters they have sent to other employees in the past. However, remember to address the right recipients in the opening of your letter. It makes it seem more personalised and special.

Typically, it’s always best to tailor your ‘thank you’ note from start to finish. As well as appearing more genuine, employees will also value the effort you make.

2. Choose the correct format

Choose a specific letter format that best suits the contribution your employee has made. If the reason you are thanking an employee is for a more casual occurrence, such as a quick favour, a short email format is appropriate.

Whereas, for employees who have made a significant impact on business operations, such as securing a valuable deal or finishing a tough project, a powerful way to show your gratitude is with a formal letter format. In this case, you can also write a personal letter by hand.

3. Mention the purpose of your letter

Begin the first paragraph of your appreciation letter with the reason for your writing. Briefly state the specific task you want to thank them for: ‘Over the past year, your contributions have been invaluable to our team’s success’. Explain why their effort was meaningful to you and provide any other relevant details. This helps employees understand exactly what behaviours to model going forward.

In the main body of your appreciation letter, discuss the significance of their actions. For example, mention if their work contributed to customer satisfaction or an improvement in teamwork dynamics. This will help them recognise the importance of their work. It will encourage the recipient to maintain this standard in their future work projects.

4. Reinforce their admirable qualities

You can use an appreciation letter as a tool to reinforce certain behaviours in your employees. For example, if they have generated the most sales leads out of anyone in their team this quarter, an appreciation letter can be a powerful way to show further encouragement. Clearly state the skills, strategies and characteristics they employed to perform the task successfully. This will direct them to continue developing their skills and encourage them to apply their unique talents.

5. Be sincere

Employees can sense when you are being sincere. Show your genuine interest in their work by referring to them by name and ending your letter with your personal signature. Closing with ‘warm regards’ will make your appreciation letter more memorable and special.

6. Proofread your letter

Before you send your appreciation letter, remember to proofread your work for spelling, grammar and formatting mistakes. As an employer, you are a role model for your employees. Therefore, consider conveying the same expectations in your correspondence too. You can encourage qualities, such as respect, integrity and attention to detail. An error-free letter legitimises your reputation.

Types of appreciation letters

Employee appreciation letters are written to express gratitude to employees for their hard work and dedication, while thank you letters are written to express gratitude for a specific task or action.

For instance, a job interview ‘thank you’ letter can be written to express gratitude to candidates for attending the interview. It can also be used to provide any relevant information about next steps in the selection process. Also, sending a thank you letter for taking part in the interview process to inform candidates that they haven’t been selected for the position is another important step.

You can send:

• general appreciation/recognition letters for consistent good work, a thank you for your hard work letter to specifically acknowledge an extra effort or a team appreciation letter to commend their collaborative efforts
• achievement-based appreciation letters upon project completion, goal achievement or to show recognition for a new idea or innovative solution an employee or team has come up with
• value-based/behaviour-based appreciation letters highlighting how an employee has demonstrated specific company values, demonstrated a positive attitude or successfully mentored a new employee
• milestone/event-based appreciation letters for work anniversaries, promotion or advancement congratulating, retirement celebration or returning from leave
• specific impact/contribution appreciation letters to recognise an employee for implementing measures that led to reduced costs, increased productivity, generating revenue or adhesion to safety compliance
• a letter of congratulations can also be in order.

Employee appreciation letter templates

A template can help guide your appreciation letter to match the circumstances, company culture and your relationship with the employee. For example, if you are a small business owner who promotes a more approachable work culture with close working relationships, a casual appreciation letter could make more sense. However, if your work approach is more traditional, then a formal appreciation letter may better suit you.

The following are three different employee appreciation letter templates you can use to write your own:

Formal appreciation letter template

Dear [employee’s name],

I am writing to you to sincerely express my gratitude for your exceptional effort during [insert information about the project or action]. You are a valued member of the team, and I truly appreciate the work you have accomplished this quarter.

Your [insert the employee’s admirable qualities, skills or behaviours] are remarkable, demonstrating your work ethic and commitment to advancing your career.

Such actions have been of great service to the company. Such efforts successfully [insert details about how the employee’s actions have made a positive impact].

Once again, on behalf of the company I would like to thank you for your hard work. I look forward to seeing your future achievements and successes!

Best regards,
[Your full name]
[Job title]
[Company name]

Semiformal appreciation letter template

Dear [employee’s name],

I sincerely thank you for the dedication and commitment towards the [insert information about the project or action].

Your [insert the employee’s admirable qualities, skills or behaviours] are a testament to your hard work and drive to succeed.

This work led to [insert details about how the employee’s actions have made a positive impact]. The positive impact your work has had is truly commendable. We are so lucky to have you!

Thanks again for your support and kindness to the team. I can’t wait to see your future achievements and successes!

Warm regards,

[Your full name]

Casual letter of appreciation template

Hi [employee’s name],

I just wanted to send you a message to say thanks for [insert information about the project or action]. Your [insert the employee’s admirable qualities, skills or behaviours] were impressive!

The time and effort you put in [insert details about how the employee’s actions have made a positive impact]. Thanks for being an outstanding role model. The team couldn’t have done it without you!

Thanks again!

[Your first name]

Employee appreciation letter examples

Use the following example letters as a reference to write your own, ensuring to personalise them by mentioning the recipient’s name and specific contributions:

Formal appreciation letter sample

Dear Natasha,

I am writing to you to sincerely express my gratitude for your exceptional effort during the recent merger. You are a valued member of our team. I truly appreciate all that you have accomplished.

Your resilience and adaptability are remarkable. They show your work ethic and commitment to advancing your career.

Your actions have been of great service to the company. The effort has successfully helped the team transition to the new operational procedures and maintain job satisfaction.

On behalf of the company, I want to congratulate you for your hard work.

Once again, thank you for your hard work. I look forward to seeing your future achievements and successes! Your continued success is something we are excited to support and celebrate.

Sincerely, Tanya Miller Accounts Director Capital Inc.

Semiformal appreciation letter example

Dear John,

I sincerely thank you for your dedication and commitment towards the excellent execution of the back to school summer campaign.

Your creative strategy and knack for bringing the right talent onboard is a testament to your hard work and drive to succeed. Your fantastic work has not gone unnoticed and is greatly appreciated.

This work led to a significant increase in sales and overall customer satisfaction. We are so lucky to have you!

Thanks again for your support and kindness to the team. I can’t wait to see your future achievements and successes!

Sincerely,

Ryan Walker

Casual letter of appreciation sample

Hi Claire,

I just wanted to say thanks for coming in early on a Saturday to set up the event. Your kind gesture did not go unnoticed.

Your positive attitude and professionalism were impressive!

The time and effort you put in were crucial to the success of the event. Thanks for being an outstanding role model. The team couldn’t have done it without you!

Thanks again!

Jacob