You have gone through application letters, held interviews and finally, you have the best candidate for the position. How do you write an offer letter that seals the deal? How do you go about making sure that the candidate you want signs the offer letter?
An offer letter is also referred to as a job offer letter or an employment letter. It would help if you made your offer letter informative, engaging, and precise. This outlines the package deal that the position comes with and persuades your ideal candidate to accept the offer.
After deciding on a candidate, call them with a verbal offer to confirm if they are still interested in the position. If they are, follow the conversation up with an offer letter.
The offer letter automates the hiring process and makes it easier to handle consecutive job offers. It can be personalized depending on the employee position to be filled. This could be a new employee, or an employee being moved into another team.
The offer letter contains details like the position, the vacation days, work responsibilities, compensation, benefits, bonus, and so forth. Some of the features may have been discussed during the interview or the verbal offer. The offer letter makes this and other information not previously mentioned formal. It’s a record of agreed upon terms (discussed earlier) of employment. It also lays a foundation for the employment relationship. It clarifies vital details and solidifies a candidate’s expectations.
1. Company logo/ letterhead
This portrays professionalism. The letterhead and company logo should be visible in a high-resolution image. It makes the letter inviting and encourages the candidate to continue reading and put serious consideration into your letter.
2. Job Title/ Job description
This is the part where you specify what role you are offering the candidate. Who will supervise them? Whom will they be reporting to? What will be the candidate’s responsibilities at the organization once they take up the job?
Specify whether it’s a part-time or full-time job, the time to report and leave work, break times and overtime policies and payment.
Detail the work schedule and a summary of duties which are subject to change. You must specify this. The offer letter does not comprise the complete job description.
3. Terms, benefits, and compensation
This is where you mention the salary and benefits. Specify whether it’s on an hourly, weekly, monthly or yearly rate. Beware of the annual rate because if you terminate them before a year ends, you should pay the full amount. Insist that these payments can be changed at the company’s discretion. Confirm in writing if the benefits and grants are included in the salary.
Include sick leaves rules and eligibility for healthcare plans. Include what the healthcare plan entails and any other benefits including retirement, life insurance, disability (short and long-term), accidental deaths, and any additional coverage.
4. Company policies
At this point, be precise about company policies, procedures, and handbook. Insist that these are subject to revision at your company’s discretion.
5. Termination Terms
This means that the employee has the option to terminate employment. Include what amount of time the employee needs to give as notice and payment rules if they fail to comply. Be careful at this point so that it doesn’t sound like the job ends after a fixed amount of time. Consult a lawyer to go through this part because any statement can be misread to mean something else and used against you in a court of law.
6. Confidentiality Agreement
The confidentiality agreement confines the employee into keeping company information secret. Any information conveyed to them should be maintained in secrecy.
7. A non-compete clause
This is a covenant that restricts the employee from starting a company or entering a similar profession or trade that is like that of your company, while still in employment.
Having the candidate sign these two agreements, the non-compete clause and confidentiality agreement can save you from court cases in the future.
8. Contingencies
Indicate in writing that you will perform a background check and proof of employees right to work in the country. Mention any other contingencies depending on the employment laws concerning certain positions.
Also, include that the offer letter has an expiration date and that the employee has a certain limited time to reply to the offer.
9. Conclusion
Express that the company is excited that the candidate will be joining your team. Include contact information and inform the candidate that they can call in case of any questions.
Provide the candidate with the space to sign and date the offer.
This is just a sample. You can customize it by adding or removing details depending on the job details and specifics. Use the placeholders to fill out your company data where necessary.
Tips:
Email Offer letter
Subject line: Job offer from [Your company’s name] or [Your Company name] job offer.
Dear [candidate’s name],
We are pleased to offer you the [job title] position at our [name the company]. We think you would be a great asset to our team due to [mention the reasons that make the candidate ideal to join your team]. Kindly review the position’s details, benefits, terms and conditions for the employment.
The position is full time and commences on [specify the date, month and year]. If you accept the offer, you will be reporting directly to [name the candidate’s supervisor and their role]. The expected work hours are [hours of the work and days of the week].
The pay rate starts at [input the annual or monthly rate and will be made on either a weekly, monthly or yearly basis]. The company will offer you the following benefits if you accept the offer [mention the benefits the candidate should expect].
Attached is a copy of the job offer terms and conditions, if you accept this offer letter. We expect the response to be sent by [specify a date and time]. In case of any questions regarding the letter, contact [name the person to be reached. This could be you or the hiring manager] at [provide a phone number and email address.]
We look forward to your response and having you join our team.
Attachment to the email offer letter
[Company letterhead or Logo]
[If none is available, provide the Company Name, Address, phone number, website, and email address]
Re: Contract of Employment
(include current date here)
[Name of the employer] [name of company] [Address] [Location] [Name of employee] [Name] [Address as provided on the cover letter]
Commencement Date
[company name] is pleased to offer you an appointment to [the job title] position. The offer is valid from [insert date of commencement] by the terms and conditions stated herein.
Location
The current place of work is (business address). The employee may, however, be required by the company to work in other areas, depending on the business needs.
Position
You will serve in the (Insert Position) and will be reporting to (Manager or supervisor position].
Work Schedule / Hours of work
This is a [contractual/ part-time/ full-time] requiring [hours required per week]. Attendance hours are [indicate days and exact time] with [indicate exact time] lunch break from Monday to Friday. Saturdays and Sundays are considered holidays unless additional hours are required. (This would also be a good time to mention how the company handles public holidays.)
Overtime payments [mention how they will be calculated, depending on company policies and how payments will be made].
Probationary Period (if the position offers a probation period before full employment.)
The role has a three-month Probationary Period during which the employee shall receive training and guidance on the position. This will familiarize you with the job position and make you competent to complete work appointed to you. The appointment commences once the candidate has completed the Probationary Period to the satisfaction of the supervisor. The position is subject to termination, during the probation period within a weeks’ written notice by either party or once payment has been rendered after notification by the company.
Leave Entitlements
Every [name of company] employee is entitled to a paid leave of [ indicate the exact number of days] annually per year of service. Leave days will be taken on such days as may be convenient with the company. Leave days that fall due after a year must be taken within the first three months after the forfeited year. After this, they become forfeit at the company’s discretion.
Personal leave (mention the requirements for individual and sick leave)
Parental Leave [mention requirements and number of days]
Remuneration
During probation, your salary will be [name the amount per either month or annually]. After Probation period is over, the rate will increase to (insert salary amount).
Salary Review
Review of the remuneration package will be on an annual basis after [Number of years] of consecutive employment with the company. After that, the review will be on a yearly basis according to company laws.
Employment Relationship
Employment at the company is ‘at will.’ This means that employees’ contracts can be terminated by either party in writing, with or without cause. The company will give a [number of months] notice and salary in lieu of such notice. The employee will provide [number of months] in writing or a notice period equivalent to pay period.
[company name] may terminate employment without notice if:
The company requires you to return all company equipment and property after termination.
Confidentiality
The company requires you to uphold implemented privacy policies and procedures. During your tenure with us, you will come across sensitive information including trade information, pricing structures, and client information.
Any documents and confidential information on trade secrets, pricing information or client details the employee prepares while employed by the company, remains as company’s property. You are not allowed to disclose without the company’s prior notice, any of this information for your own or other person’s benefit.
You shall use your best effort to prevent unauthorized disclosure of company information or any of its other associated companies. You must safeguard and promote the company interests and not to perform any harmful acts that harm the company.
Non-compete clause
The employee is not allowed to undertake business, related to the company’s line of business. However, the said employee can acquire or hold shares, or the securities of any company listed on any recognized stock exchange as a bona fide investor.
Interpretation, amendment, and enforcement
This offer letter supersedes any representations, prior agreements or understandings with the employee, whether presented in writing, verbal or implied, between the employee and the company. This letter cannot be modified unless done so after a signature from both parties and authorized by a company officer.
Signing on this agreement indicates that you accept the terms of employment and accept the offer. Upon signing this offer, [the company name] will provide you with all other necessary paperwork and further instructions.
Welcome and Acceptance
(Employees name), we take this opportunity to welcome you to (company name. We believe your skills are an asset to the company.
We wish you a gratifying career
Yours sincerely,
Signed on behalf of the company
(Name & Position of manager)
Signature __________________________
I ___________[name of employee]______________ acknowledge receipt of this contract and accept indicated terms and conditions of employment.
TIP
Make sure the offer letter has been reviewed by the company’s Legal team or legal advisors, before sending it to the employee. They will help you get rid of any misinformation, unclear details or information that could lead to court cases.
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