How To Write a Bonus Letter To A Deserving Employee

An employee can receive a bonus for many reasons. It might be due to reaching their target or bringing in a big client. In any case, a letter is a great way to notify them, congratulate them, and thank them for their hard work.

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Not only that, but when your team excels at work, it’s important to take the time to appreciate them. If you’re sending an incentive their way, why not take the time to write an accompanying ‘thank you’ bonus letter?

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When it comes to the format, you can use a template or personalize each letter to write the perfect bonus letter every single time. 

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Keep reading for all the details to include in your next employee bonus letter. 

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How To Write A Bonus Letter To An Employee

No matter what the bonus is for, it's important to always include the information below. Of course, add extra details or sections if you deem it necessary!

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Following this guideline will ensure the perfect bonus letter that will make your employee feel valued and appreciated every time. 

Address The Letter

The letter should be addressed to the person receiving the bonus. Include their name and position, as well as the date. 

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Take care to ensure that all the details are correct and you spell your employee’s name correctly. Silly mistakes like spelling errors or the wrong date may come across as impersonal or rushed. 

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You should also include your name and position so that the team member receiving the letter knows exactly who it’s from.

Announce The Bonus

Straight after you have addressed your employee, state the purpose of the letter. In other words, announce that you appreciate their hard work. Because of this, you will be giving them a bonus.

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It's also important to set out what the bonus is for. Don't just thank the recipient for their efforts - show your employee that you value them by mentioning the particular project the bonus relates to. 

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This way, the letter will feel personal and not like a job of copy-paste.

Set Out The Details

Briefly set out the details relating to the bonus. For example, if it’s distributed company-wide after a profitable year, indicate how much your organization has grown since the previous year. This will help your team realize how their work ethic can impact organizational success. 

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It's also important at this point to set out how much the bonus will be. You could indicate a monetary amount or set out the percentage of the recipient’s salary to be paid as the bonus.

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Also, indicate when the employee will receive the bonus. This gives them something to look forward to and allows them to plan financially.

Congratulate The Bonus Recipient

Don't forget the reason for the bonus in the first place! In other words, don't forget to congratulate your employee for all their hard work leading up to the reward.

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Go into detail about the extra time and effort they put into the project. You could even mention any compliments from clients or top management to make them feel extra special. 

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This small inclusion will go a long way in showing your employee that you value them. It will also help motivate them for their next task.

End The Letter Appropriately

Once you have mentioned the bonus, what it's for, and congratulated your employee, you can end the letter. 

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Be sure to thank them one last time for their hard work and dedication. End the letter with your name and contact details. This will allow the receiver to respond and extend their gratitude for the letter and bonus if they wish.

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Related: When To Write A Thank You Note To Employees

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Tips To Remember

Choose The Right Means Of Communication

Make sure you choose the appropriate means of communication. You could do a handwritten letter, a typed note, or even send an email. Just be sure the option you go with is appropriate for the occasion! If the bonus is a pretty big deal, consider handwriting it for a personal touch.  

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If you choose to send the letter via email, remember to include a clear and concise subject line. It's the first thing your employee will see, and you need the recipient to give the email preference over their everyday emails.

Keep It Short And To The Point 

Less is always more. Keep the letter short and sweet. Make sure to set out all the essential information relating to the bonus - but don't go on forever.

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Adding too much content means your employee may miss the key points. The best bonus letters are only between two and three paragraphs long.

Include A Way To Respond

It's always important to include a way to respond, especially if you opt for a handwritten letter instead of an email. You never know when your employee may need to supply certain information to receive their gift. There may even be a mistake in their details - play it safe, and include a way to respond!

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When signing off, always include your name and email address. You could also allocate a time and day you are available should they wish to meet with you. 

Consider A Template

To ensure you get the perfect letter every time, consider using a template. A skeleton bonus letter that you tweak to fit different circumstances will save you time.

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Using a template can also help to organize your thoughts on the page and ensure you don't forget any vital information. To find the perfect template, look online. You could also model your bonus letter off previous ones sent within your organization. 

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Bonus Letter Example

Employee Name and Surname

Position

Date

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Dear [insert employee name],

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Congratulations on your hard work and dedication to [insert project or client name]. Your hard work has not gone unnoticed. As such, we would like to reward you with a bonus of [insert amount]. We will pay this amount to your bank account on [insert date]. 

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Your contribution to the company has led to [insert details of growth or targets met].

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[Name of your organization] takes this opportunity to thank you again. We look forward to another successful year with you on the team.

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Best Regards,

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[Name of employer]

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[email address]

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Final Thoughts

An employee bonus letter is a small gesture that goes a long way. Showing your team that you appreciate them by taking the time to thank them is extremely important. It tells your employees that you value their contribution, which helps to keep them motivated.

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If you’re due to pay out some bonuses, follow these tips and tricks to compile the perfect letter that is bound to make your employee feel appreciated.