What is an offer letter?
After an initial verbal offer is extended to your best candidate, it’s time for you to send an offer letter. The job offer letter is usually sent before any contingency is done such as reference checks, but before signing the official employment contract. The offer letter acts as a formal offering of the job position to the applicant and includes summaries of the main terms, conditions of the offer, details about the role and company, as well as any other details to help the candidate decide whether or not to accept the job offer. It can also serve as an entry point for negotiations to happen.
If the candidate accepts your offer, they will sign the letter and return it to you. However, it is important to note that a signed offer letter does not necessarily mean that it is a legally binding agreement for employment. The employment contract is typically a separate document containing detailed legalities offering protection for both parties. Nevertheless, it is still a good idea to have a legal professional review your offer letter before handing it over to a potential employee to ensure you are legally protected.
What is included in an offer letter?
A job offer letter provides an overview of the job position and company as well as specific job details such as the start rate, remuneration, work schedule, benefits, and more. As there is no one-fits-all sample job offer letter, feel free to arrange the elements below to fit your company and the job roles you are looking to hire for.
Company Logo
To convey authenticity and professionalism, incorporate your company’s official letterhead with a high-resolution image of your company logo. This portrayal of authority encourages a potential employee to read on and to seriously consider your offer.
Date and contact information
In the upper lefthand corner, include the date, the candidate’s first and last name, and their address:
DD/MM/YYYY
Candidate First and Last Name
Candidate Address
City, State, Postcode
Greeting / opening line
Start your offer letter by addressing your potential employee using “Dear,” followed by their first and last name. Congratulate them enthusiastically in offering them the job with a positive and upbeat opening line such as: “We are excited to offer you a position at [Company Name]!” You can customise this opening line to be as formal or casual as you like in reflection of your company’s culture.
Job details
After the greeting, continue onto the specifics about the job position including logistics. You should include things such as the formal position title, the name of the employee’s manager or supervisor, a brief description of the role and its responsibilities, as well as any other important matters specific to the job. This will help the candidate set their expectations of the job and helps give them clarity on any misunderstandings or overlooked items during the application process.
Contingencies
Should the job offer be dependent on the candidate qualifying for certain accolades or completing certain documents, state this requirement in the job offer letter. Contingencies may also include background checks, reference checks, drug tests, signed confidentiality agreement, or proof of employment eligibility such as a visa.
Compensation
Use the job offer letter to clearly explain the compensation scheme. Specific details such as how much the candidate will make on an annual, monthly, fortnightly, weekly or hourly basis, how often payment will be made, and the available methods of payment. Should any other compensation benefits apply, you should also mention them, such as equity, bonuses, commissions, and so on.
Benefits
To encourage a candidate to accept your job offer, summarise the key benefits offered by your company starting with the most attractive ones. Avoid including too much since details are better suited during the orientation process or in an employee handbook. Attractive benefits that may be worth mentioning in a job offer letter include:
- Insurance coverage
- Superannuation
- Paid time off
- Flexible work hours
- Work from home options
Job offer expiration date
When wrapping up, decide whether you want to place an expiration date on the job offer. Providing a hard deadline can save you from losing other qualified candidates should the prospect decline your offer. If you decide to include a time limit, be sure to give the candidate enough time, like a week, to consider before making a final decision.
Closing
End the job offer letter by expressing excitement about welcoming the candidate to the company. Provide your contact information should they have any questions and seal the deal by including a line for them to sign and date the offer should they choose to accept.
Disclaimer
To avoid any confusion, include a brief disclaimer explaining that the job offer letter is informational and not legally binding. Consult with your lawyers to draft an offer letter with language that avoids any contractual implications.
Job offer letter template
[Company Logo]
DD/MM/YYYY
Candidate First and Last Name
Candidate Address
City, State, Postcode
Dear [Candidate Name],
We are pleased to offer you the [full-time, part-time, etc.] position of [job title] at [company name] with a start date of [start date], contingent upon [background checks, reference checks, etc.]. You will be reporting directly to [manager/supervisor name] at [workplace location]. We believe your skills and experience are an excellent match for our company.
In this role, you will be required to [briefly mention relevant job duties and responsibilities].
The annual starting salary for this position is [dollar amount] to be paid on a [monthly, fortnightly, weekly, etc.] basis by [direct deposit, cheque, etc.], starting on [first pay period].
In addition to this starting salary, we are offering you [discuss stock options, bonuses, commision structures, etc.].
Your employment is on a contractual basis for a period of [time period] subject to renewal. There is a [time period] termination notice required should you wish to leave your employment with [company name]. This letter is not a contract or guarantee of employment for a definite amount of time.
As an employee of [company name], you are also eligible for our benefits program, which includes [private healthcare insurance, superannuation company matching, holiday time, etc.], and other benefits which will be described in more detail in the [employee handbook, orientation package, etc.].
Please confirm your acceptance of this offer by signing and returning this letter by [offer expiration date].
We are excited to have you join our team! If you have any questions, please feel free to reach out at any time.
Sincerely,
[Your Signature]
[Your Printed Name]
[Your Job Title]
Signature: ______________________________
Printed Name: ___________________________
Date: __________________________________
Related Articles:
