Crafting a good offer letter is an art. Not only should it show that considerable thought and care has gone into the offer, but it should also communicate your excitement to welcome them on board. Simply providing compensation information and a list of benefits isn't enough. You want to give your new hire the most straightforward, complete idea of what the position will entail. Obviously, you can't do every facet of the position justice; there are countless aspects, protocols, and skills that can only be learned on the job. Sending a welcome email is a great way to split the information up so that the offer letter isn't completely overwhelming for the selected candidate. Essentially, you want to send your new recruit a letter that eliminates potential surprises. You want to include the basics:
But a great offer letter must also contain details on flexibility, some brief explanation of your company's values, internal culture, etc. Don't leave the big stuff to the imagination.
Every great job offer includes the specific elements that give your new recruit everything they need to go into their first day at work happy and confident. Here are key components of an effective offer letter:
Be extremely clear about this. It is somewhat common for employers to interview candidates for a specific position only to find that they are a better fit for another role within the company. If you find yourself in that position, clarity becomes even more vital. Explain what job you're offering instead, how it compares to the other position salary-wise and benefit-wise, and what kind of schedule the new recruit will need to expect.
Obviously, this is a big one. Make sure you specify whether the position you're offering is salaried, hourly, or commission-based. There cannot be any surprises here.
This is often discussed during the interview, but it's essential to have it in writing. This allows both parties to prepare for the onboarding process and is usually accompanied by a clear list of to-dos for the new recruit's first day.
Surprisingly, not every offer letter includes details about what the role will entail. Often, when responsibilities and expectations are outlined in the offer letter, they appear as a bulleted list. Including the details of the job's responsibilities at the outset is vital because it helps the new recruit assess whether they will perform the required duties and meet company expectations. If they've been through the interview process and have maintained correspondence with you or your hiring team, they are likely clear about what is expected of them. Still, it's prudent to reiterate all of this sooner rather than later.
Including the details of the job's responsibilities at the outset is vital because it helps the new recruit assess whether they will perform the required duties and meet company expectations.
This includes background checks, references, and other important details about you. Finally, it is important that you include the fact that an offer letter by itself is not a binding contract. That is a separate set of documents. Unfortunately, it is sometimes necessary to rescind a job offer. If that must happen, you want to have a clearly documented statement that the offer letter was not a contract. This is a crucial step in making sure you are legally protected. To make the process even easier for you, we've included some effective job offer templates below.
Subject: Full-Time Employment Details with
[Street Address]
Dear, On behalf of, I am pleased to offer you employment with as a starting on [date].
Please carefully review this document for important details about your compensation, benefits, and terms of your anticipated employment with [company].
You will be paid a salaried rate of [X] during your employment. Your compensation will be paid in regular installments in accordance with the Company's standard payroll process and will be subject to applicable tax and other withholdings. As an exempt employee, you will not be eligible for any overtime pay. This position is a full-time position.
As part of your compensation, we're also offering [bonus]. As an employee of [company], you will also be eligible for [other benefits].
[Street Address]
Dear [name],
On behalf of [company], I am pleased to offer you employment with us starting on [date].
Please carefully review this document for important details about your compensation, benefits, and terms of your anticipated employment with [company].
During your employment, you will be paid an hourly rate of [X]. Your compensation will be paid in regular installments in accordance with the Company's standard payroll process and will be subject to applicable tax and other withholdings. As a non-exempt employee, you will be eligible for overtime pay. This position is a part-time position.
As part of your compensation, we're also offering [bonus]. As an employee of, you will also be eligible for [other benefits].
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