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How To Write The Perfect Job Offer Letter
Did you know that a job offer letter could be your recruiting team’s trump card? A study by Glassdoor found that 17.3% or 1 in 6 candidates reject a job offer letter outright. Getting your top candidate to accept the offer can often be the trickiest part of the entire process, so you need to focus on it.
This article will explain the core role of a job offer letter, the key components of one, and a template you can use to create your perfect offer letter today.
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What is a Job Offer Letter?
A job offer letter is a document sent by an employer to a potential employee formally inviting them to join their company. Simply put, it is a letter that formalises the offer of a job position to an applicant. A job offer letter details the terms and conditions discussed or agreed upon at the interview stage. It may also serve as the starting point for negotiations.
What Should You Include in an Offer Letter?
The offer letter should contain all the relevant details an applicant needs to make their decision with confidence. Ideally, as an employer, you want that decision to be “yes”.
That’s why offer letters should provide details on the terms and conditions of employment and clarity of the role. It should also highlight the total compensation package and other relevant information. Listed below are the top items you need to cover in your letter of job offer.
1. Company Logo
Print or email the offer letter on company letterhead, displaying the company’s name and logo. Doing so shows the candidate that this is a serious offer.
2. Date and Contact Information
The date, candidate’s name and address should be on the offer letter. This information should be visibile on the top-left corner.
An example could look like this:
Candidate First and Last Name
City, State, Postcode
3. Job Details
The offer letter should also contain all the relevant job details. This includes the formal title, a brief description of role and responsibilities and the supervisor they report to.
This section of the letter should also specify if it is a full or part-time job, if it has remote options and if it would involve travel. Clearly define the working hours alongside the date and location the candidate should resume.
The contingencies are processes and documentation the applicant must fulfill after accepting the offer letter. Not fulfilling any of these needs can lead to the retraction of the offer.
Examples of contingencies include background and medical checks, reference checks and signed confidential agreements.
As for non-citizens, they may also check the eligibility of the person’s employment status and right to work. Including this in your offer letter deters future misunderstandings or legal battles in the event the company has to retract the offer letter.
The compensation package should include the annual total pay, the breakdown, and how often they get paid (weekly, bi-weekly or monthly). It should also state other forms of compensation the candidate will receive, like equity, stock options or commissions, to go alongside their salary package.
6. Benefits of the Offered Job
It’s crucial to mention all the benefits the candidate would receive on accepting the job offer letter. This information can help convince the aspirant employee to take the job. Some benefits that attract candidates include:
Medical and insurance coverage
Flexible working hours
Remote work options
7. Expiration date
Set a deadline for the candidate to respond. A deadline ensures a faster onboarding process if the candidate accepts the offer. If they decline the job offer letter, it gives you time to contact other candidates to offer them the job. The industry norm is a week for the candidate to decide. It can be made shorter if time isn't on your side.
You can close the job offer letter by stating your excitement at the prospect of having them on board. You should also make the contact details of an HR team member or department head available for the candidate to call if they have questions. Also, provide the space for them to sign and document the date.
Job Offer Letter Template
Below is an example of a job offer letter template.
Candidate First and Last Name
Dear (Candidate Name)
We were impressed with your interview process and are pleased to offer you the position of [job title] on a [full/part-time] basis at [company name]. You are to start on [start date], contingent upon [background checks, medical checks, reference checks etc.] and will report to [supervisor's name] at [Company location].
The responsibilities required in your role include, but not limited to [Briefly mention the job duties].
We will offer you an annual salary of [Amount in local currency], to be paid on a [monthly, weekly or bi-weekly] basis, through [direct deposit, cheque etc.], with the first payment on [date]. As discussed, we will also offer you [equity, stocks or commission percentage -if applicable]. Find attached breakdown of the compensation package [Optional].
As an employee of our company, you will be eligible for our benefit programs which includes [medical and insurance benefits, off-leave days etc.]
We would love to get a response by [expiry date] and can reach us through this [phone number] or [email address], if you have questions.
We look forward to having you on the team.
[Printed job title]
General Tips for Writing a Job Offer Letter
Call Before Sending a Written Offer Letter
A call is essential because you can determine if the candidate is open to the opportunity or not. It can also inform you of other offers the candidate is considering and their attitude towards your potential offer. It allows you to take the candidate's “temperature”.·
Tailor the Letter to the Candidate
During the interview process, you should have gotten close to the candidate. Knowing their drive and motivating factors can help you draft a tailored offer letter to them. For example, if a candidate's drive is growth and career progression, you can highlight that as one of the key benefits to improve your offer acceptance rate.
Avoid Statements That Implies Permanency or Duration
Statements like “We know you will be with us for a long time,” or “Looking forward to you being with us for a long time” can be detrimental to your company. Avoid constructing your sentence in such a manner because of the legal implications.
Frequently Asked Questions About Job Offer Letters
What Do You Write In A Job Offer letter?
The job offer letter contains the details a prospective employee needs to decide whether to accept or reject an offer. The details should include:
The job title and description
The start date
Salary and other forms of compensation
How Do I Ask For a Job Offer Letter?
If you are a prospective employee, the company will get in touch with you either through a phone call or email informing you of their offer. The date of the written offer commonly accompanies this information. If the job offer letter doesn’t arrive on the specified date, contact the person who emailed or called you to inform them of your blight.
How Do You Write A Job Offer Letter?
Writing a job offer letter means understanding what it is, and what needs to be in one.
Can HR Verify An Offer Letter?
If you mean can they verify offer letters from other companies, then - no. Most HR professionals will not ask to verify a competing offer letter.
Need Time To Write Your Next Job Offer Letter?
Writing an offer letter is a straightforward task. But attending to other minor HR-related activities alongside it can turn a simple assignment into a cumbersome one. Problems like delays in writing and sending letters late aren't uncommon.
That's where Personio comes in. We offer an all-in-one HR software that makes your core HR work seamlessly. Book a free web demo with us today and find time for what really matters.
We would like to inform you that the contents of our website (including any legal contributions) are for non-binding informational purposes only and does not in any way constitute legal advice. The content of this information cannot and is not intended to replace individual and binding legal advice from e.g. a lawyer that addresses your specific situation. In this respect, all information provided is without guarantee of correctness, completeness and up-to-dateness.
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