Congratulations! You have found an incredible candidate for your open position and now you are ready to extend a job offer. Hiring a new employee is a big commitment – you are inviting someone onto your team, into your environment, to be a part of your business. No small step. We know that the interview process is incredibly important for how potential employees think about the business and a well thought out and thorough job offer letter is an integral part of the picture.
Each job offer should first be extended via a phone call or email and then a formal job offer letter should follow shortly. Our team has put together some best practices as well as a template to help you draw up your own complete job offer letter.
Creating Your Business’s Job Offer Template
At its core, a job offer letter’s purpose is to present the details of your open position so that prospective employees can weigh the benefits and demands in order to decide if they want to accept your offer of employment. This should include the following information:
- A reiteration of the job description
- Pay & compensation
- Benefits, paid leave, etc
- The job’s baseline expectations
- Company identifiers (logo, mission statement, etc)
It is important to be succinct, yet thorough when walking through these details. It’s very common for employers to assume that all the fine details of the job have been agreed upon in the various stages of interviews before. This can lead to false expectations on both ends, and could even lead your new employee to quit soon after onboarding. This will be one of the last chances to communicate the aspects of the job before your candidate accepts the offer, so be clear, and be prepared to show your new employee exactly what your business is all about.
1. Opening salutations and basic information
First things first, address the applicant and extend the job offer on behalf of the company. List any contingencies here first, for example: “This job offer is contingent on our receipt of your school transcripts.” It is a good idea to state that this is not a binding job contract, but a detailed overview and terms of the position to be agreed upon. Outline the job title, the expected start date, any orientation they are expected to attend, and if the position is full- or part-time.
2. Information specific to the job
This section should get into the specifics of the job you are offering this candidate. How their base salary is structured and when they can expect to be paid, who they will be reporting to in their position, any non-compete agreement to be signed before the start date, and any bonus or commission opportunities. If this position is on-site, traveling, or a remote-work position should be specified.
The outline of benefits is a very important part of the letter. The benefits should be clearly stated and fair for the position being offered. The amount of Paid Time Off available and any emergency or medical leave being offered, including if this is static or accrued. What healthcare, dental, life, and disability coverage is offered by the company and if any additional eligibility is offered in the case of 401K for example. If your company is offering stock options to the employees or educational assistance it should be outlined as well. If the position is eligible for any type of stipend (home-office, internet, cellphone, car, etc) that should also be included.
4. Terms of Employment
If the job that you are hiring for requires applicants to pass a background check, submit to regular drug testing, sales goals, complete a Form I-9. Any metric that they must pass for employment should be outlined as well as the consequences of failing to complete any requirements for the position. Whether or not the metric is federally or locally mandated or specific to the structure of the company, it should be laid out in order for potential employees to be aware of the job expectations.
In the final part of a job offer letter the applicant should be able to find how and who to contact in the case of any questions or concerns regarding the job offer and if there is a deadline for a response from the applicant. This is also a good place to include any excitement or eagerness from the company in having the applicant join their team. A nod to company culture and the environment that they would be stepping into are a good way to end. A space for the applicant to sign and date will finish off your letter!
What Else To Consider When Writing A Formal Job Offer Letter
Get Legal Advice for Safety
It is always a good idea to have your legal council look over the letter, and anything that is handed to the employee from the employer, to make sure that any state and federal guidelines are being adhered to and that everything is in order, someone on your side to support your interests.
Don’t Be Afraid to Ask For Help!
Once you have checked off these boxes, you should have a comprehensive and well thought out job offer letter. If you are looking for more support our team of hiring experts at Hire With Ease are ready to support you every step of the way in your hiring process. With our HR on Demand services you will have online access to our HR legal library, information covering the most common employer laws (AMA, FMLA, FLSA, etc.), new hire kits, tips on creating effective policies and employee handbooks, and great advice. Your business will not only have access to every online resource in our HR Support Center, but will also have practical, live advice from human resources specialists whenever you need it.
Helpful Sample Formal Job Offer Template
Want a head start making your business’s official offer letter? The hiring experts here at Hire With Ease made a Job Offer Letter Template with customizable blank fields. Click button below and fill out the fields to get one instantly emailed to you.