In 2023, experts are expecting upwards of 33% of professionals will seek out a new job. Finding the ideal hire is difficult. Most of the time, you must review a large number of resumes and interview a large number of candidates before making a decision. After all of this effort, it’s time to send your job offer letter – and you realize that this is just as important as any other hiring stage because you need to make your job offer stand out in order to attract the best candidate.
Below, we will discuss what an offer letter is, what it should contain, and how to write one. We also provide a sample and template to assist you in creating your business letter. Continue reading!
What is an Offer Letter?
A job offer letter is a formal invitation to a position in a company from the employer. The letter emphasizes the terms of employment, including the salary, benefits, and company policies. In most cases, the latter is duplicated. If you accept the offer, you must sign the letter and return one to the employer as proof. Though most job offers are made by phone or email, a letter is always sent to the candidate later.
Importance of an Offer Letter
Many people are unaware of the significance of an offer letter in an organization. Let’s dig deeper into the facts that indicate the significance of an offer letter. It is important because:
- It formally extends an offer to a job applicant, summarizes the main terms and conditions of the offer, and provides information about the role and company to assist the candidate in deciding whether or not to accept the offer.
- It clearly spells out the terms of employment, any benefits, and compensation information.
- It helps avoid any misunderstandings after the employment and secure your compliance.
- The offer letter allows you to itemize every detail about the offer, outline the job responsibilities, and highlight relevant company details.
Components of an Offer Letter
An offer letter provides a brief overview of the position and company, as well as job-specific details such as start date, salary, work schedule, and benefits. The following information should be included in your offer letter:
- Company Logo
To convey professionalism and authenticity, use your company’s official letterhead with a high-resolution image of your logo. This is an excellent way to entice a prospective employee to continue reading and seriously consider your offer.
- Date and contact information
Include the date, the candidate’s first and last name, and their address in the upper left-hand corner:
MM/DD/YYYY
First and last name of the candidate
Address of the Candidate
City, State, and Zip Code
- Opening Line
Begin your offer letter with “Dear,” then include the candidate’s first and last name. With a positive, upbeat opening line, congratulate them and express your excitement about hiring them.
- Job details
Begin your letter with information about the position and work logistics. This could include the position’s formal title, expected start date, employment classification (full- or part-time), office location, manager/supervisor, and a brief description of the role and its responsibilities. This provides the candidate an overview of the procedure and clarifies any details that may have been missed or misunderstood during the interview process.
- Contingencies
Mention in the offer letter if the job offer is contingent on the candidate completing certain documents or performing certain tasks.
- Compensation
Explain the compensation package you’re offering in detail. Include specifics such as how much the candidate will earn on an annual or hourly basis, how frequently they will be paid, and the payment methods available.
- At-will statement
Include an at-will clause. Every state is an at-will state, which means that both the company and its employees have the right to terminate employment for any reason at any time. Consult a legal professional for assistance in determining what language to use when describing an employee’s at-will status.
- Benefits
To persuade a candidate to accept your job offer, provide a brief summary of the key benefits your company provides. Include as few details as possible, as this is better suited for an orientation package or employee handbook.
- Expiration date
When you’re finished with your letter, consider whether you want to put an expiration date on your offer. If the prospective employee declines your offer, a firm deadline will prevent you from losing other qualified candidates. If you decide to include a deadline, give the candidate at least one week to make an educated decision.
- Closing
End your offer letter by expressing how happy you are to welcome the candidate to the team. Include contact information in case they have questions, as well as a line for the candidate to sign and date the offer if they accept.
- Disclaimer
Consider including a brief disclaimer stating that the letter is for informational purposes only and is not a legally binding contract or agreement. Consult with a lawyer to prevent using language with agreements implications.
How to Write an Offer Letter
Continue reading to learn how to write an offer letter in a series of steps:
- Make a verbal offer
Before writing an offer letter, speak with the candidate and make a verbal offer. Human resources professionals frequently perform this task by calling the candidate and presenting offer information over the phone to gain buy-in. Draft an offer letter after the candidate has indicated a tentative verbal acceptance or an openness to negotiation.
- Make your subject as descriptive as possible
To ensure that your message is noticed, include a brief but descriptive subject line when sending offers via email.
- Choose appropriate salutations
For formal offer letters, use a salutation like “Dear” and a title indicator like “Mr.,” “Mrs.,” “Ms.” or “Dr.” For informal acceptance letters, simply use the candidate’s first and last name. Either way is acceptable. Consider your company’s brand voice when deciding which is best for your human resource department.
- Include three or more body paragraphs
There is no set formula for how many paragraphs your letter should have, but in most cases, three or more are required to include all of the information that the candidate requires. Make sure your body paragraphs are clear and concise, and that they contain all pertinent information.
- End your letter with a strong close
Finally, inform the candidate that by signing the letter, they have accepted the offer. Finish with a strong closing sentence by being direct and concise.
- Include appealing supporting information
You may want to include more information that will assist the candidate in making an acceptance decision. Consider including company policies, benefits information, contracts, and any other documents you believe may entice a candidate to choose a position with your company as an email attachment.
- Send as an email attachment
In the digital age, the standard method of delivering an offer letter is as an email attachment. Include your offer letter and attachments in a short message that explains the company’s intentions to the candidate.
Types of an Offer Letter
To expand your knowledge, you should know the different types of an offer letter. Here are the following:
Standard Offer Letter is a signed and stamped piece of paper that is given to the employee by the employer when they are hired. It includes all of the information about the new employees, as well as a breakdown of their salaries and benefits. Here are some examples of standard offer letters for various situations:
- Full-Time Offer Letter
- Part-Time Offer Letter
- Permanent Offer Letter
- Fixed-Term Offer Letter
- At-Will Offer Letter
This is a job offer that includes important information and qualifications for the available position. This includes the job title, pay and benefits, the start date of employment, and what the employer expects from the new employee. The final stages of the hiring process can begin with this letter, which communicates that the applicant has been chosen for the available position. Here are some examples of it:
- Background Check Offer Letter
- Drug Test Offer Letter
- Medical Examination Offer Letter
- Reference Check Offer Letter
- Education Verification Offer Letter
Internship Offer Letter is a formal letter informing a student or individual that they have been chosen for an internship position in a business or organization. It contains critical information about the position and the terms of the internship. These are the types of an internship offer letter:
An executive offer letter is tailored to the high-level director or executive. They are frequently far longer than those of the average employee because the letter can cover everything from compensation, relocation expenses, and signing incentives to millions of dollars in severance packages and options for stocks. You can use this letter in writing the following:
A contract offer letter could be sent to a job candidate or to a company that provides third-party services. A contract employee offer letter is a contract between the company and the job applicant. The offer letter details all of the benefits that the company will provide to the job applicant. It can be used in the following situations:
- Independent Contractor Offer Letter
- Consulting Services Offer Letter
- Freelance Offer Letter
- Academic Offer Letter
After you have completed your applications to the universities of your choice, the next step is to obtain an offer letter from those institutions. An offer letter essentially indicates that you have been accepted into the program for which you applied. It can be applied in the following:
Sending the Offer Letter
We should think about a few things before and after sending an offer letter. In this section, we’ll go over more details about sending out an offer letter.
- Methods of delivery (mail or email): When sending an offer letter, it is essential to get to know the methods you prefer to use for fast the transmission of messages. You can use either mail or email as they are both widely used communication tools in the workplace.
- Timing considerations: The final step in the interview process is to send an offer letter, but this can often take longer than expected. To avoid losing outstanding candidates to other opportunities, send out an offer letter as soon as the decision to hire is made. You should consider the time when you should send the letter because a quick offer letter gets you a quick answer.
- Follow-up communication: having a follow-up communication after sending an offer letter shows good manners and professionalism. This also lets the hiring managers know your interest in the job and your eagerness to start working.
Accepting or Declining the Offer
Receiving a job offer is one of the most exciting parts of the job search process. However, there are some details that you should know when accepting or declining the offer. These are the following:
- Options of responding
You can use the following steps to respond to a job offer:
- Consider your response
- Negotiate (this is optional)
- Accept or decline the offer
- Use a professional letter format
- Timeframe for responding
Send your initial response within 24 hours and specify a deadline for your final response. A typical amount is two to three days.
- Consequences for accepting or declining
Accepting or declining an offer letter may have consequences. To prevent it, you should know what are the possible outcomes in accepting or declining an offer. To understand more, here are the following:
Accepting
In accepting the offer, here are the possible outcomes:
- You might get a job offer.
- You will be given a commission.
- You might get a deal.
- You might be offered shares in the company.
- You might be approached to make a purchase.
Declining
When you decline a job offer, there is almost no chance that you will be offered another one. However, in order to professionally decline an offer, you must follow some guidelines in order to reject the job offer.
Negotiating the Offer
Here are the details that you should understand to effectively negotiate the offer. Read the following:
- Understanding the terms of the offer
Drafting job offer letters can be time-consuming. If not written well, they can even feel incomplete. Every job offer letter should include the following terms and conditions:
- Position of the Role
- Duties and code of conduct
- Working hours
- Date of joining
- Reporting structure
- Compensation
- Appraisal
- Confidentiality and Non-compete Clause
- Transferability
- Provide fund and Gratuity Plan
- Notice and Termination
- Leave Policy
- Dual Employment
- Contingencies
- Identifying negotiable elements
Negotiating your employment terms is nothing to be frightened of; you want to get the most out of your skills, and the company wants you to be pleased from the start. Before accepting a job offer, consider the following elements, which are sometimes negotiable:
- Starting salary
- Performance bonus
- Scope of the job
- Vacation time
- Start date
- Hiring or signing bonuses
- Health benefits
- Relocation expenses
- Severance provisions
- Work location
- Communication strategies
It’s essential to have a communication strategy in place when negotiating a job offer. To successfully navigate this process, use the following advice:
- Arrive prepared
- Display your best qualities
- Concentrate on the overall worth of the transaction
- Be positive about the company and your job
- Clearly state what you would like to change about the job offer
Revising the Offer Letter
An offer letter is a formal business letter that encourages a candidate to work for your company. However, before sending them to their recipients, we must ensure that the offer letter meets the requirements for the negotiations. Before sending them out, finalize every detail.
- Making changes based on negotiations: Negotiation is a discussion in which two or more parties use bargaining to reach an agreement. Here are a few examples of business negotiations:
- Salary Negotiation: Candidates for jobs can negotiate their salary and benefits with an employer.
- Vendor Negotiation: Many businesses bargain with vendors over contract pricing and services.
- Conflict-resolution: Conflict resolution in the workplace frequently entails a negotiation between two or more parties, which can result in an agreement.
- Finalizing and sending the revised offer letter: Finalizing and sending the revised offer letter matters most because it allows you to itemize the facts about the offer, outline the job’s responsibilities, and highlight relevant company details. If the candidate wishes to negotiate issues such as salary or vacation time, the job offer letter serves as an important reference point.
Sample and Template
We provide a useful sample and template that can help you out in writing your offer letter:
Sample 1
Here’s a simple template for writing your own personalized offer letter:
[MM/DD/YYYY]
[Salutation] [Name of Person Receiving Offer],
[Body Paragraph 1: Includes the Name and Position of the Company]
[Body Paragraph 2: Job Status, Location, Start Date, Work Hours, Supervisor]
[Body Paragraph 3: Information on Compensation and Benefits]
[Finishing Remarks]
[Salutation],
[Full Employer Representative Name]
[Title] | [Business]
[Contact Details]
Sample 2
Here’s a sample offer letter to get you started on your next offer:
03/25/2020
Dear Mr. Wongka,
Hardtouch Enterprises is happy to send you an employment offer for the position of Staffing Assistant. Please go over our formal offer letter and respond as soon as possible.
We are offering you a full-time position as a Staffing Assistant in the Hardtouch Enterprises corporate office at 521 W. Kennedy Boulevard. Tampa, Florida 34509. You will be reporting to Hailey Buzz, VP of Staffing. Our position is open from 9 a.m. to 5 p.m. to 6 p.m. Monday, Wednesday, and Friday, as well as at 11 a.m. to 8 p.m. Every Tuesday and Thursday. Your first day on the job will be March 30, 2020.
Hardtouch Enterprises will pay you $30,000 per year for your services. Beginning on April 15, 2020, you will be paid bimonthly. You are eligible for commission and bonuses as part of your competitive compensation package. The commission rate is 5%, with bonuses of $2,000 per quarter starting after 90 days and applied when your team meets quarterly goals. You will also be eligible to apply for a company health insurance plan, dental plan, 401(k), and 30 hours of paid time off if your offer is accepted.
By signing below, you indicate your acceptance of the terms of this offer.
Sincerely,
Robert Miller
Human Resources Recruiter
(043) 456 7890
Key Takeaways
- A job offer letter is the employer’s formal opportunity for a position in the company. The letter focuses on the employment terms, such as salary, benefits, and organizational policies.
- Make a verbal offer to the candidate before writing an offer letter.
- Check that your body paragraphs are clear and concise, and that they include all relevant information.
- Inform the candidate that they have accepted the job offer by signing the letter. Finish strong with a direct and concise closing sentence.
- As an email attachment, consider including company policies, benefit information, contracts, and any other documents that you believe may entice a candidate to choose a position with your company.
- Include your offer letter and attachments in a brief message to the candidate that explains the company’s intentions.