What is a job offer letter?

A job offer letter is a formal written document that presents an employment opportunity to a prospective hire. Typically, this letter provides detailed information, including the job title, start date, salary and benefits. It also provides the candidate with a deadline to accept or decline the job offer.

What do you include in a job offer letter? 

While the style and tone can vary by industry and role, every job offer letter usually includes the following information:

• Job title and description: Provides the candidate with the role’s formal title and a brief description of the necessary responsibilities, tasks and goals.
• Employment type: States whether the position being offered is full-time, part-time or contract.
• Salary and benefits: Outlines compensation details such as the salary, potential for bonuses or commission and employee benefit programs, such as medical coverage, pensions and other perks.
• Start date: Clearly states when the prospective employee will begin work, including the dates for any training sessions and orientation, if applicable.
• Expiration date: Sets a date by which the candidate must accept or decline your job offer.
• Contingencies: States whether the job offer hinges on passing a background check, reference checks or other requirements.

Some companies find it helpful to include additional information in their job offer letters, such as:

• Chain of command: Outlines your organization’s reporting structure, including the name and title of the candidate’s direct supervisor. If the new hire will have a peer mentor, you can also mention this.
• Work schedule: Provides the prospective employee with scheduling information, stating if they will be required to work weekends, nights or holidays.
• Paid time off: Highlights paid vacation time and sick days. If you choose to follow suit, be sure to specify when the employee will be eligible for these benefits.
• Signing bonus: Clearly stipulates if they qualify for a signing bonus, the amount and any conditions that must be met. 

Why is a job offer letter important?

This formal document fosters a smarter hiring and onboarding process by accomplishing the following:

1. Establishing a concise record of the offer: By clearly outlining the job title and description, salary and benefits, start date, employment type and contingencies, this document helps to ensure that the employer and the prospective employee are on the same page. Unlike a simple phone call, this letter formalizes and legitimizes the job offer.
2. Attracting top candidates: A carefully crafted job offer letter can motivate a candidate to accept your proposal. Including key selling points such as a competitive salary and benefits is a definite plus. Furthermore, you can use your letter to reveal your company’s positive culture by carefully selecting the right tone and voice.
3. Fostering successful onboarding: Thanks to your expertly composed job offer letter, your new employee can better prepare for their start date, attend training sessions and partake in orientation if necessary. This knowledge can make onboarding easier, eliminate potential misunderstandings and set them up for success.
4. Potentially offering legal protection for your company: A job offer letter alone is not necessarily a legally binding contract, but it clearly outlines the employment terms. By signing, the new hire accepts these terms, which may provide the employer with some protection against potential legal disputes.

How can you present a job offer letter?

Now that you’ve crafted your job offer letter, it’s time to select your method of delivery. Here are some of your options:

Make a phone call

Some organizations choose to call candidates before sending out job offer letters. This recruitment strategy has several benefits. This personal touch allows you to express your enthusiasm over their qualifications and suitability for the role, increasing the likelihood of securing that new hire. 

Phone calls can also help you eliminate people who have accepted other positions or are not interested in the role, saving you time and resources. A phone call is not meant to replace a formal job offer document.

Send an e-mail

Most companies opt to send a job offer letter via e-mail as it serves as a written record of the job offer. The prospective employee signs it, acknowledging that they agree to the stated terms. Plus, e-mail is cost-effective, allowing for quick delivery and a fast response.

Use an automated hiring system

Automated hiring systems can generate offer letters to suitable candidates. These recruitment software tools can track your company’s job offer letter e-mails and candidate responses and alert you when an offer is accepted. These systems are particularly helpful for large organizations or when running large-scale hiring campaigns.

What do you do after the offer has been finalized?

Once a candidate has accepted your job offer, it’s time to move forward. Here are the next steps:

• Confirm receipt. Once you receive an acceptance, send a confirmation e-mail. Provide a warm welcome to your organization and express how pleased you are to have them on board. 
• Act on contingencies. You can now conduct your background checks and ensure that any other pre-employment requirements are met. 
• File job offer letter. Store the job offer letter for future reference. Typically, they are sent to your Human Resources Department for filing or stored in your Applicant Tracking System (ATS). Keep them for three years after employment has ended.

Now that you’re fully versed in how to compose a job offer letter, you can cross off an item on your new hire onboarding checklist. Composing job offer letters is simply a matter of employing concise language that reflects your brand, clearly communicates the facts and appeals to your top candidate. With some practice, you can craft expert job offer letters that land your most coveted hires.