After going through dozens of applications and conducting several rounds of meetings, you’ve discovered the ideal candidate. What can you do to close the deal? That’s where the letter of offer is crucial.
Below, we’ve explained the information you must be aware of when creating an engaging and detailed employment offer letter that clearly describes the benefits you’re willing to offer and gives the person you’ve selected an assurance to take it. There’s also an employer-specific job offer template to help you start fast.
What is an offer letter?
After you’ve extended an initial verbal proposal to the top candidate, you’re ready to mail the offer letters. Typically, the offer letter is sent before any contingencies such as background checks; however, before signing an employment contract, An offer letter is:
- Usually, they offer a position to an applicant for a job
- In this article, we summarize the key Terms and Conditions of this offer
- It gives information about the job and the company that can assist the candidate in deciding whether or not they want to accept the job offer.
If the person offering your offer accepts, they’ll sign the letter and send it back to you. But, it’s essential to recognize that an offer letter isn’t necessarily a legally binding employment contract. It’s usually an additional document that offers specific legal protection for both parties. However, it’s recommended to consult a lawyer to review your offer before giving it to a prospective employee.
What’s included in the offer document?
A letter of offer provides an outline of the company and the job. It contains specific information about the position, such as the start date and salary, as well as a working schedule and benefits. Because there’s no standard template for a job offer letter, you can alter the following elements to match your company and the positions you’re seeking to hire.
Logo of the company
Employ your company’s official letterhead with high-resolution logo images to show professionalism and trustworthiness. This is a great way to encourage potential employees to read on and think about the offer you make.
Date and contact details
On the left-hand side of your upper right, place the month, candidate’s name, first and last name, and their address:
MM/DD/YYYY
The Candidate’s First and Last Name
Candidate Address
City, State, Zip
Opening line/greeting
Your offer letter should begin with”Dear,” followed by the candidate’s initial and last name. Reward them and express your excitement for the opportunity with a positive, positive opening statement, for example:
“We are delighted to provide you with a job in the Company’s Name!”
It is possible to make your opening speech as casual or formal as you’d like, based on your company’s business culture.
Job information
Include specifics about the job and also the work-related logistics. This could include the official job title, beginning date and the classification of employment (full or part-time), office address, and a manager/supervisor description of the position and the responsibilities. This gives the applicant an understanding of the type of work expected and can help clarify any information that was not understood or missed throughout the interview.
Contingencies
If the offer of employment is contingent on the candidate fulfilling certain requirements or completing specific tasks, include the condition in the offer letter. The contingencies could consist of background checks, tests for drug use, I-9 form or signed confidentiality agreements, or reference checks.
Compensation
Be clear about the compensation plan you’re offering. Give specifics on how much the prospective employee will earn either on an hourly or annual basis when they get paid and the payment options available. It is also possible to discuss equity bonus structures, commission structures, and more. If they are relevant to the job.
Status at-will
Include an at-will declaration. Each state (except Montana) is an at-will state. This means that both the employer and its employees can end the employment of any employee at any time for any reason. To determine the appropriate words to employ when explaining an employee’s right to terminate at will and the legal status of an employee, seek advice from a professional.
Benefits
To convince a potential employee to accept the job offer, you should briefly outline your business’s main benefits. Don’t include excessive details since this would be better served in an employee orientation manual or handbook. In your offer letter, you may briefly highlight appealing benefits, like:
- Insurance coverage
- 401(k) plan
- Time off paid
- Flexible spending accounts
- Assistance with education
- Flexible work hours
- Options for working from home
Expiration date
After you have finished your letter, determine if you would like to include an expiration date on the offer. A firm deadline will prevent the company from losing applicants if the candidate rejects the bid. If you have an end date, ensure you give your candidate at least a period to make an educated decision.
Closing
In the closing paragraph, you should say that you are excited to welcome the applicant to the company. Give contact information should they have any questions. Also, include a note that the applicant must accept and sign the offer if they decide to take it.
Disclaimer
You might want to include a short disclaimer that explains that the letter is intended to be informative and is not legally binding or an agreement. Get a legal opinion to avoid using language that has legal implications.
Offer Letter Format Free Download
Offer Letter Format Sample 1:
Offer Letter Format Sample 2:
Offer Letter Format FAQs:
- How do I write an offer letter?
Step 1: Opening and Basic Information. …
Step 2: Job-Specific Information. …
Step 3: Benefits Information. …
Step 4: Paid Leave Information. …
Step 5: Terms of Employment. …
Step 6: At-Will Employment. …
Step 7: Closing. …
Step 8: Legal Review.
- What is a formal job offer letter?
A job offer letter is a written communication sent to a prospective employee who has been selected for a specific position. A job offer letter should provide the candidate with information on salary, job status, job duties, contingencies, supervision, and starting date.
- Can I make my offer letter?
You can write an employment offer letter yourself or hire an attorney either to write it for you or to review one you have written. Another option is to use an online service provider to create the employment offer letter for you.
- Do I need an official offer letter?
Although not required in the U.S., providing a candidate with a written job offer is good practice. Following up on a verbal request with a written proposal will set expectations for the new employee and clarify any matters discussed during the interview phase.
- Do offer letters include salary?
An offer letter is a formal document sent to a candidate offering them a job at a company. It includes basic information about the position – start date, title, salary, onboarding information – and offers written confirmation that an employer is selecting the candidate for the job.
- Do offer letters come from HR?
The offer letter is usually sent out after either HR, or the hiring manager calls the candidate to verbally offer them the job. The letter should be sent out via email and regular mail so the candidate can sign it and send it back.
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