Finding the right person for the right opportunity is one of the most difficult yet the most satisfying moments of a hiring professional’s life. While finding the right person is a strenuous job, making the perfect offer can be even more difficult. The HR professional has to strike a balance between organizational budget and organizational need for the ideal person for the job. The question is, how?
An employment offer letter may be the answer. Contrary to the popular opinion, it is not just the figure quoted which appeals to the candidate, it is also the language used that may or may not appeal to a prospective employee. The language in an employment offer letter is a reflection of the hiring organization’s attitude and inherent culture.
So how do you make a job offer they can’t refuse?
Let’s find out, shall we?
In this comprehensive guide, we will not only tell you about the traits of a perfect employment offer letter but also give you offer letter templates and examples that will help you create a perfect one for your organization.
What is a job offer?
To put it simply, a job offer or an offer of employment is an invitation you extend to a potential employee after all the hiring formalities and discussions have been done. It is the final document which goes to the potential person which is deemed acceptable upon receiving a signed acceptance.
A job offer is usually sent in the form of a mail or an attachment thereof. In either case, it contains the details of employment such as fixed and variable compensation, the terms and conditions of employment, job responsibilities, expected working hours, and more.
All in all, a job offer or an employment offer letter enunciates the organization’s details and potential employee’s expectations, as regulated by the HR as deemed fit.
What is included in a job offer?
A complete employment offer letter should comprise each and every aspect which a prospective employee should know about the organization. None of the terms and conditions should be left out. There are certain details which need to be present in order to make it the perfect job offer letter.
Following are the details that can be found in good offer letter templates or when you make an offer:
1. Job title
The title or designation that is being offered to the potential employee, along with the department. In certain cases, even the reporting manager can be included here.
2. Job description
Although this aspect is usually covered at the initial stage when the discussions happen, it doesn’t hurt to reiterate the details in the job offer as well.
3. Starting date
Clearly mention the date on which the prospective employee is due to start working at the organization. Given, at many times, the start date may not fall at the start of the month, this mention helps in calculating the pro-rata compensation for the month.
4. Work schedule
This is another communication which usually happens in person. However, it is better that it forms a part of the employment offer letter as well. Clear written communication of the work schedule would ensure there is no miscommunication on the part of either party, a possibility in verbal communication.
5. Reporting structure
This is another thing that should be mentioned in the employer job offer letter. It’s a good practice to include managers, peers, and subordinates in the offer letter, even though it may not be a popular practice. Consider it as a preliminary or basic orientation. If not expressly in the offer letter, this can be done separately in the mail.
6. Salary structure
The salary structure or the compensation thereof is the most important part of the offer letter. This is the value of the potential employee that has been mutually agreed upon. It is imperative to have a written communication of it and the offer letter serves the purpose. The salary structure should clearly mention all the fixed and variable components, along with insurance, gratuity, bonus, if applicable.
7. Leave structure
Another important communication that should be a part of the job offer is the leave structure. Clearly mention the yearly cycle followed (calendar year or financial year), and the number of leaves allowed in it, paid, unpaid, gazetted and optional ones.
8. Employee benefits
Again, this is one part of the job offer which is not deemed important enough to be included. However, it should be. Mentioning employee benefits is a tempting and trusting way to welcome your potential employee into the system of which you have been a part of.
9. Privacy policies
Clearly chart out the privacy policies of the organization and the way in which it is legally binding on the employee. Also, mention the repercussions thereof.
10. Termination conditions
Last but not least, mention the unmentionable. Chart out as to what can lead to the termination of the employee. These can be ethical issues as well as professional ones. Nevertheless, important to mention in a job offer.
There are many good offer letter examples available across the internet once you start searching for ‘how to make an offer’. However, not many offer a complete view of how one should create a comprehensive job offer. Thus, here is where we are collating each and every aspect so as to enable you to create offer letter templates that are complete in every sense.
Job Offer letter templates: Types and examples
If you thought that job offer could be sent in one staple format, you are mistaken. There are numerous offer letter templates, depending upon the type of offer letter you are handing out. A good job offer letter example can save a lot of time. Good employment offer letter templates can truly turn the game around for you.
Let’s take a look at each of them, along with the respective offer letter sample to get you going.
1. Generic job offer letter
This is a generic job offer template that can be used to make any kind of offer. Only, the HR needs to include as many details as possible to avoid any confusion that may arise later. Also, this would need customization according to the offer being made.
Here is a general job offer letter sample template you can use to structure your own:
Email subject line: [Company_name] Job Offer / Job Offer from [Company_name]
Dear [Candidate_name],
It’s been an exciting journey to get to know you over the past few days. We are impressed with your profile and would like to offer you the position of [Job_title].
This position is a full/part-time, and would entail [mention working days and hours.] Your reporting manager would be the [head of the Department’s name]. [If applicable: Kindly note that the organization {name} is an at-will employer, i.e. either of the party can end the relationship at any time, sans cause or notice.]
Your compensation would be an annual gross salary of [mention figure and bonus programs.]
You will also be entitled to certain company benefits such as [mobile and travel reimbursement, paid vacation, insurance plan]. A detailed annex with the said details has been attached for your perusal.
You are expected to join at [starting date]. You will be expected to sign a few more documents of non-disclosure and confidentiality, upon your joining.
Please revert to us with a signed copy of this letter by [date.] In case of any doubts, feel free to connect with me or your prospective manager [name].
We are looking forward to having you as a part of our team.
Best regards,
[your name]
[Signature]
2. Formal job offer letter
Next in line is a formal offer letter which is made when a full-time position is being offered to the selected candidate. A good formal offer letter template should comprise the official mail, wherein the offer letter is attached. This offer letter should be complete in every sense, including all the requisite components and the terms and conditions of employment.
Here is a formal sample welcome letter to a new employee:
Email subject line: [Company_name] Job Offer / Employment Offer Letter from [Company_name]
Dear [Candidate_name],
Welcome aboard!
We’re delighted to offer you the position of [job title] with [name of the company]. Please find attached a summary of the employment terms and conditions for your review.
If you wish to accept the offer, you will be expected to start on [joining date]. In case you need to wrap up some prior commitments, feel free to get in touch and we can agree upon a mutually decided date.
As a [designation,] you will be reporting to [name of the manager and the department.]
Attached are the terms and conditions of employment. Please revert by the earliest and get in touch in case of any concerns, via phone or email.
Looking forward to having you aboard.
Best regards,
[Your name]
Job offer letter template – Format of attached annexure
Job offer format: Table of contents
I. Designation
II. Cash compensation
III. Bonus
IV. Employee benefits
V. Confidentiality agreements
VI. Termination conditions
I. Designation
Job title
You will be joining in the capacity of [job title.] Further, you will be reporting to [manager’s name and department.]
Work hours
This is a full-time position that would require you to give [xx] hours per week, Monday to Friday, from 10.00am to 07.00pm [replace with relevant hours].
Employment Relationship [customize as per your company’s policies]
Your employment with the company is on an ‘at will’ basis, which means that both the parties can annul the relationship at any point of time, without having to show cause or notice. In case you have been communicated anything otherwise, this document will supersede the same. All the compensation and benefits to fall under the ‘at will’ nature of your relationship with the company. The only way in which this relationship can be altered, is by way of an agreement that would be signed by you and your manager. In that case, that agreement would be considered final in defining your relationship with the company.
II. Cash Compensation
Salary
You will be entitled to receive a salary at the rate of [annual figure] per year, starting [date when the first salary would be due.] This salary is subject to the employee compensation policies of the company.
Tax withholding
Any compensation in the form of salary and benefits that has been mentioned in this document is subject to legal deductions such as tax and more.
Tax advice
Even though we have professionals to help you out with your tax queries, you are welcome to consult your own taxation advisors, with respect to your compensation. It is to be noted that the company is not liable to curate its compensation policies in a way that it helps you minimize or evade tax liability.
III. Bonus (or commission) potential
Apart from the fixed annual salary, you are also eligible for an incentive bonus in each fiscal year. Please note that this bonus or incentive is subject to the criteria that are laid out by the CEO and the company’s board of directors. The bonus, therewith, would be [mention percentage] of your salary. For the year in which you are joining, the bonus would be calculated on a pro-rata basis. Any decision by the board with respect to your bonus will be final and binding.
IV. Employee benefits
You will be a regular employee of the company. In the capacity, you will be able to take part in various comprehensive company-sponsored benefits, such as:
Vacation policy
You will be entitled to [xx] days of paid vacation per year, in addition to sick leaves, bank holidays, and the organization’s off days.
Private health and dental insurance plan
As the company’s esteemed employee, you are eligible for a health insurance plan by us, the details of which will be provided by the vendor.
Stock Options
You’ll have an option to purchase [xx] shares in the common stock of the company or the parent company (the Option). Please note that this is subject to the approval of the company’s compensation committee and the board of directors. The exercise price per share of the Option too will be determined by them and would be subject to the terms and conditions mentioned in the company’s stock plan. 25% of Options shares would be vested in by you after a continuous service of 12 months. The balance will be vested in the form of equated monthly installments over the period of the next 36 months of continuous service.
V. Privacy and Confidentiality Agreements
Privacy Agreement
By signing this letter and agreement, you agree to further uphold and accept the company’s privacy policies and any changes in it therein. Employee’s personal information too will be dealt with in accordance with the privacy legislation of the company.
Conflict of Interest policy
You will not engage in any other form of employment, part-time or otherwise, while in employment with the company. Note that any such activity would be considered as a conflict of interest and can lead to immediate termination. A signed acceptance of this letter would be considered a deemed acceptance of the fact that you have no other contractual commitments.
Proprietary Information and Inventions Agreement
You will be required to sign the company’s Proprietary Information and Inventions Agreement.
VI. Termination Conditions
The company reserves the right to terminate the employment for a valid cause, without any cause or notice. This also extends to the compensation determined. However, you will be required to serve the minimum legal notice period.
Your signed and dated acceptance of the agreement would lead to legal acceptance of all the aforementioned terms and conditions. We would need your response by [date] or else this offer would expire. Post the signed acceptance, other necessary paperwork and instructions would follow.
Sincerely,
[Sender name]
Signature
Date
Accepted by,
[Candidate name]
Signature
Date
3. Informal job offer letter
This type of job offer is usually extended when the organization is either not stringent with rules, or if the position is a part-time one. In such cases, mostly, the job offer entails an email with written communication of the compensatory and work conditions agreed upon by the employer and the employee.
Here is an informal employment offer letter example.
Dear [first name],
Congratulations!
We are happy to offer you the role of [designation] at [company.] as we feel your skill set matches our vision. We are sure you will be an asset to the company.
Your annual gross salary would be [figure], paid to you in [frequency] installments via direct deposit in your bank account. Additionally [xx] percent of your gross salary would be credited to you in the form of an incentive-based bonus.
Following are some of the other standard benefits which you shall receive:
Xx Paid leaves
Xx Sick leaves
Bank holidays
Flexible working hours
Medical insurance
Conveyance allowance
… and more!
Do send us a signed acceptance of the offer by [date.] You will be reporting to [manager’s name.] In case of any doubts, do get in touch with either of us.
We cannot wait for you to join our team.
Sincerely,
[Sender Name]
Signature
Date
Accepted by,
[Applicant name]
Signature
Date
4. Transitionary offer letter: Part-time to full-time
As the work culture is becoming more and more experimental, where testing waters has become a tradition, there are times when candidates are brought on board on a contract or on a part-time basis. Thereafter, when they transition as a full-time employee, another offer letter is sent out, highlighting the change.
Here is a job offer letter sample for when you’re offering a transition in contract type or job arrangement.
Dear [Employee’s name],
We are pleased to tell you that we are extending our relationship beyond your existing roles. Your employment status has been changed from part-time to full-time, as of [date.]
Below are the terms and conditions of this offer, subject to acceptance:
- You will be joining as [designation] and would be reporting directly to [manager’s name and department]
- Your gross monthly salary would be [figure], credited in the form of a direct bank deposit
- You will be entitled to a performance-based bonus every year
- Your working hours would be [weekly working days and daily timing]
As a full-time employee, you are also entitled to the company’s benefits:
- X paid leaves
- X sick leaves
- X bank holidays
- Private health insurance plan
- Approved expenses, subject to the approval of the internal management
- Any other benefit which arises in the course of the employment
Please send a signed acceptance of this letter by [date]. Feel free to contact the HR department in case of any queries.
Sincerely,
[Your Name]
Signature
Date
Accepted by,
[Applicant name]
Signature
Date
5. Internal job offer letter
This is an offer letter which is used when an internal employee is offered another position within the organization. This is a popular practice wherein an employee’s skill set may be found to be more suitable to another department and position, instead of the one originally offered. The offer letter, in this case, would be slightly different.
Here is an internal job offer letter sample that you can customize into your own:
Subject line: Congratulations on your new role!
Hello [Employee’s name],
As discussed, you are being promoted to the position of [Senior Account Manager / Team Leader] as of [date].
Please find attached your updated contract. It contains your new employment terms, along with your compensation package and benefits. Please go through it and get back to the HR in case of any doubts. Kindly send back a signed acceptance by [date.]
Your hard work and commitment are appreciated. We look forward to seeing you achieve new heights with this role.
Congratulations, once again!
Best,
[Your name]
[Your email signature]
Offer letter templates vary as per the type of job offer extended. Make sure you choose the correct one after considering your organization’s policies.
6. Ready-to-use offer letter templates
Apart from the aforementioned, there are also certain ready-to-use offer letter templates. All you have to do is change the details every time you use it and customize as per requirement.
Here’s a simple job offer letter example.
Ready-to-use offer letter example 1
Dear [Applicant Name],
You are coming on board! [Company Name] is ecstatic to have you as a part of its team as a [job title].
In this position, you will be entitled to a compensation of [figure]. You will be reporting to [manager and department] and would be expected to work for [number] of hours per week, from Monday to Friday, [mention timings].
In addition to your compensation, you are also entitled to certain benefits, the details of which can be found in the letter attached herewith. It entails performance-based bonuses, stock options, insurance policy, and more.
Please send a signed copy of the letter back to us as acceptance of this job offer, on or before [date].
Sincerely,
[Sender Name]
Read-to-use offer letter example 2
If you’re hiring for the role of a Product Manager, here is another simple job offer letter sample which is ready to use:
MM/DD/YYYY
Company Logo
Candidate First and Last Name
Candidate Address
City, State, Pin code
Dear [Candidate Name],
We are more than pleased to offer you a full-time position of Product Manager at [company name] for compensation of [figure] per year. This will be paid out to you on a monthly basis as a direct credit to your account. You will also be entitled to a bonus and further benefits, as mentioned in the annexure attached.
Your starting date is [xx/xx/xx], subject to your acceptance. Any change in the date would be due to a mutual agreement between both parties. Your joining is also subject to a background check that will be conducted by the company.
As a Product Manager, you will be reporting to [manager and department]. You will be entrusted with the responsibility of taking complete ownership of the product, as you study and understand the market and its consumers.
We believe you will be a perfect fit for our company and we are absolutely delighted to have you on board.
Kindly send in your signed acceptance by [date]. In case of any questions, do get in touch.
Sincerely,
[Your Signature]
[Your Printed Name]
[Your Job Title]
[Date]
These ready-to-use offer letter templates are sure to make it easy for you to create and send an offer letter to your latest hire, in minutes. Just remember that this is an official document that marks the start of a project with someone. So you need to follow a few best practices and include them in your new hire packet.
Tips to making a job offer the right way
A job offer does not end with creating a perfect employment offer letter. There are other things to keep in mind as well. For example creating a new hire packet, framing the right new hire welcome email, new hire welcome letter, and more.
Now before you get overwhelmed by all the details, here are a few tips that you should keep in mind while sending a job offer to a prospective candidate.
- Make sure you cover all the important details before you hire. There shouldn’t be any uncovered loop which may cause trouble later.
- Make sure you discuss everything verbally and obtain consent, before handing out the job offer in written format.
- Ensure that you use an effective offer letter sample. This means that while you may use any of the many offer letter templates available, you should know how to customize it in an appealing manner for the current job offer.
- Use recruiting software to speed up the process of extending the job offer.
- Make sure that you personalize the offer. Every job opportunity is a new experience for the candidate. Personalization helps in putting them at ease and accelerates the acceptance process.
- Notify the candidate that once the job offer is accepted, they will receive a new hire welcome email and letter. Also, let them know that you’ll be providing them with a new employee welcome kit to ease the onboarding.
- Making a job offer may look like an easy feat from afar, but requires a lot of skills. Make sure you use the right ones to get the right response.
How to write a standout job offer letter email
An offer letter is not the only component of a complete job offer. The offer letter email therein is also an important part of it. In fact, it is the mail which is the first step and can often make or break the deal for the candidate.
Everything matters, from the tone used to the language utilized, to the details included therein. Here are the components of a standout mail for extending a job offer:
- Subject line: The first thing which should be effective enough to catch the attention of the candidate. It can be a simple ‘Congratulations! You are hired.’ or ‘Welcome to Company Name.’ The main aim is to make that mail stand out from the rest. There should be no room for speculation here. The candidate should know the result from the word go, i.e. the subject line itself.
- Job information: Give the basic job information in the email. Just the designation and package offered would do. The rest of the details can be included in the employment offer letter that goes as an attachment.
- Salary and benefits: As mentioned in the above point, you have to mention the compensation offered in the standout mail. However, decide whether you want to disclose the components and benefits too, here. Alternatively, you can guide the candidate towards the attached offer letter.
- Acceptance deadline: This is an important detail that may often get missed out in the offer letter. To be on the safer side, include it in the standout mail itself.
Next steps: Guide the candidate through the next steps, as to what needs to be done to accept the job offer and what the next steps will be.
TLDR; Make sure your job offer email is personalized, warm, and welcoming.
What is a job offer acceptance rate and how can you improve it?
Communication plays a huge part in creating impressions. The hiring process is purely based on how well the communication takes place, start to finish. It is important to create a good impression throughout so that the employee is inclined to hit the accept button as soon as the offer letter is sent out.
In today’s scenario, wherein applications such as Glassdoor exist to rate the employers and organizations, it is important to keep the communication and process transparent and easy.
A higher acceptance rate ensures that there is no hindrance in choosing the right candidate from a wide pool.
If the acceptance rate of the offer letter is low, there will be an extremely low chance of getting the right prospective employee.
Here are some of the ways in which the acceptance rate of the offer letter can be improved:
1. Process faster
You will not be surprised to learn that most candidates prefer a faster process that can tell them the results within 48 hours or at most a week.
2. Communicate better
Let the candidate know of every stage’s result. They appreciate clear communication rather than beating about the bush or worse, no communication at all.
3. Early communication on expectations
Make sure you lead the conversation with the expected compensation. More often than not, the HR discusses the salary component after all the formalities have been discussed, only to find no alignment between the organization’s budget and the candidate’s demands. This leads to wastage of time.
4. Strong offer
Make sure you adhere to all the tips required to create a perfect job offer so that your candidate is immediately inclined to become your employee.
5. Offer a welcome packet
Employees love surprises. Create your own employee welcome packet template, which is basically a kit that ensures the organization strikes the right rapport with the new employee from day one.
A good welcome packet template should include a welcome letter by the CEO, a copy of a press release that includes the name and description of new joiners, an employee handbook presented creatively, employee SWAG, and the likes. A welcome packet is basically a package that conveys a company’s identity to the employee and makes him or her feel welcome and embraced in this new phase. It can also be referred to as a new employee packet or a new hire packet.
A good acceptance rate will ensure there are no hiring roadblocks for the organization ever.
Creating the perfect offer of employment is no mean feat, but it is not cumbersome as well. Only, keep your communication clear and follow this guide.
Going for an interview or to discuss a job offer? Don’t forget to read our guide on nailing the business casuals look.
What has been your experience of giving out offer letters? Do share with us and tag @HarmonizeHQ on Twitter.
