The ability to write a strong job offer letter is one of the most important steps for building and maintaining a qualified workforce. Unfortunately, many employers fail to execute this task correctly – which can result in major financial repercussions. To learn more about creating a strong offer letter for your new hires, read on.
What is a job offer letter?
First and foremost, a job offer letter is a formal acknowledgment that a person has been hired for a job. This piece of documentation is a great way to set job expectations and start the employee-employer relationship on a positive note.
What do I include in a job offer?
All job offers should contain the following information:
Job Description and Title
This one seems obvious, but you’d be surprised how many employers skimp out on the details when it comes to writing a role description in a job offer letter.
Be as detailed and specific as possible about what the job entails. This will help assist with performance evaluations, promotions and other job assessments down the road. Include who the role will be reporting to and what team it technically “sits” on. In the case of giving a job offer, we think it’s better to overcommunicate and include more detail than not. Afterall, you want your new hire to be as clear (and as excited) as possible when signing your offer.
Office Policies and Procedures
Details on office policies and procedures can help an employee feel more welcome and knowledgeable on their first day in the office. It also helps them get a stronger feel for the company culture and how they can contribute. Take this time to mention any important details that the new hire might need to know about building access or safety procedures, workers’ verification forms and any other personal documentation they may need to provide.
Include the starting salary in your job offer letter. Also be sure to include how often the salary will be paid (bi-monthly, weekly, etc.) – and what type of method it will be distributed by (direct deposit, mailed check or otherwise). If applicable, include information on how to set up direct deposit or use other banking tools. In this section, be sure to note when actual payment to the new hire will begin and include any details around prorated pay.
Benefits & Perks
Benefits are often a high priority for candidates starting a new job. In this paragraph, outline which benefits are included with the job, who else in a family they might cover, and how much they cost. This area is a great place to drum up excitement for your recruit, too. Does your company offer any special perks like catered lunch one day a week, employee wellness stipends or in-office meditation? Detail that fun stuff here – you’ll want them to come in excited and curious.
Dates and Times
Clearly specify the employee start date, as well as outline what the hours of the job are, including details on weekends, holidays and vacation policies.
Is an offer letter a binding contract?
An offer letter isn’t a legally binding contract, contrary to what many employees and employers believe. However, it’s still important to ensure that your job offer letters include all of the necessary information about the job and your company, which will ensure that the employee is informed about their commitment. Speaking with a trusted legal team is an important way to protect your company when sending out a job offer letter.
How do I rescind a job offer?
Unfortunately, employers are sometimes faced with circumstances where they’ll need to rescind a job offer. If you find yourself in this situation, taking the proper steps that can help protect you, your company and the candidate is key. For example, all offer letters should explicitly state that the document isn’t a binding contract. This enables flexibility for changing or rescinding the job offer letter if something changes.
Once a candidate has signed on and is ready to join your team, be sure to send them a stellar welcome email. Delivering a job offer letter is one of the most exciting aspects of being an employer. Make your new teammate’s first day, week and 30 days absolutely stellar with our Complete Guide to Onboarding.