You can employ a bonus letter template to formally recognize and reward an employee's outstanding performance or the achievement of specific, measurable goals. You can use bonus letters to inform team members of bonuses for individual achievement or companywide bonuses that go out to the entire staff.The best approach to grant a bonus is in writing. The letter is official in tone and sent to the employee. Thank you for your commitment and dedication. Keep up the good work. Here are the key components you need in a retention bonus agreement: 1. Duration: Clearly define how long the agreement is valid. 2. This bonus announcement sample letter may be used as a memo to all workers or to an individual employee. Bonus Award Letter to Employee: Recognize Excellent in The Right Way!