Once you have locked in on your perfect candidate, it is time to welcome them into your organization. If you have already had a verbal conversation with them, now is the time to send them an offer letter. The acceptance will confirm the employee’s intent to join your organization. But writing an offer letter in the proper format is essential. It is an initial conversation, and everything should be perfect.
So, let’s understand the nitty-gritty of the offer letter format.
What Does An Offer Letter Include?
An offer letter includes the most important things that the employee is concerned about while deciding whether to join the company or not.
- Job Title
- Company Address and Info Of Hiring Manager
- Start Date And Schedule
- Compensation details, other benefits, and allowances
- HR’s employee policies
What Are The Various Components Of An Offer Letter Format?
#1: Upper Left-Hand Corner
Start with writing the date, candidate’s first & last name, and candidate address in the upper left corner.
#2: Intro
Start off with a formal ‘Dear’ and their first and last name.
Next, congratulate them for getting selected and making it this far. And offer them the position with an eye-catching line ranging from as formal to as casual as you want.
#3: Job Description
Now that you have welcomed them introduce what they are in for, i.e., the job’s specifics.
This includes job title, when they are expected to start, full or part-time status, the location, their supervisor, and lastly, the role’s description and responsibilities.
#4: Contingencies
It would be best if you also mentioned any contingencies that may depend on potential employees receiving the job, such as filling out any documentation or passing a drug test.
#5: Compensation
This is the most exciting part of the offer letter for the employees. This part must have the annual or hourly wages, the payment frequency, and the available payment methods.
Moreover, you can also elaborate on equity, bonuses, commission structures, etc.
#6: At-Will Statement
At-will statement enables the employee and the employer to terminate the employment at any time and for any reason.
It is in the best interests of everybody to consult a legal expert for this part of the offer letter. Erroneous or faulty drafting here can lead to fights and disagreements later.
#7: Benefits
This is again an exciting part for the employee. This part sets employee expectations for what to expect from the employer and profile.
Thus, briefly explain the significant benefits of joining the organisation. We say briefly because most of it can be elaborated upon during the onboarding process.
Some benefits you can include are insurance options, 401K pension options, your company culture, etc.
#8: Expiration Date
We have communicated almost every important detail related to the job opportunity. So, now it is time for the offer expiration date.
Yes, the expiration date is the last date by which the employee can revert and confirm their appointment. The expiration date sets a vibe of importance and urgency while giving you time for finding another candidate should the candidate not intend to join you.
#9: Closing
Finally, close the letter with a positive end note that you are happy and excited for them to be a part of your team.
Next, add details of the contact person in case they have queries and finally inform the candidate to sign and date the offer if they agree to the offer.
#10: Disclaimer
Disclaimer is often not given its due importance. But it is an essential part of the offer letter. It specifies that the offer letter is not a legally binding contract or agreement.
Always consider consulting a lawyer so that you can avoid contractual implications.
Note: Once accepted and signed by the employee, an offer letter is legally binding in most scenarios unless stated explicitly in the letter that it does not bind the employee.
Drafting a letter is a tedious process, and getting the offer letter format right is important. That’s why HROne extends a library full of ready-to-use HR letter formats that save your time and effort!
