A job offer letter is an official company document that is given to a newly hired employee. It contains all of the important information that is related to the job and what the company will offer the applicant during his/her employment. As an employer, it is part of your duty to let the new employee know that he/she has been accepted to become a part of the company’s workforce. After all of the effort that the job seeker has gone through to ensure that he/she will land a job, it is fair that you duly present him/her with an offer letter once you have considered him/her to become a part of your workforce.
To give you a better perspective about what to include in a job offer letter and how to format such letter, you are in luck because we have these for you. We also have sample job offer letters that showcase how these letters are supposed to look like. They will definitely be great to use as references, especially if you are involved in a start-up company or if you want to update the stock job offer template that your company uses. You will definitely have a better idea about how to write an offer letter.
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What Is the Purpose of an Offer Letter?
The main purpose of an offer letter is to properly relay employment information to the new hire. Job offer letters are typically given to newly hired employees a few days or weeks before their commencement date in the company. They typically contain the details about what the conditions of the employment will be, as well as what the salary package of the new employee will be. There are spaces allotted for signatures, both from the employer and the new employee. Once all the necessary signatures have been affixed, these documents are now considered to be legally binding.
Inclusions of an Offer Letter
There are important information that should always be reflected in an employment offer letters. This helps to ensure that the information relayed is complete and that there will be less to no misunderstandings at all.
Basic Employment Information
This will include
- the job title,
- the start date, and
- the compensation package.
The job title and the responsibilities that the new hire would have should be the very first information reflected in the job offer. Just like in the job posting, it will reflect the job description. This is to make sure that the employee fully understands what the employer is expecting from him/her.
The start date would be next. In setting up the new hire’s start date, you have to make sure to give them ample time to prepare the other necessary pre-employment requirements. About five (5) days to two weeks would be enough time to prepare the said requirements. It is also recommended that when you hand out the offer letter, you also hand him/her a checklist for these requirements.
The compensation package section will typically include what the base salary would be and how much allowance there would be. Bonuses are not stated in the offer letter but can, however, be reflected in the employment contract.
Terms and Conditions
Terms and conditions are usually included in an offer letter. One example of this would be a statement stating that if the company finds out through background checks that the employee has failed to be honest in his/her application or pre-employment forms, then the employment might not push through.
In this section of the offer letter, you have to be very clear. This is to make sure that everything will be easily understood, and in cases where the new hire’s employment will not push trough, you have a document to show that there are certain terms and conditions stipulated in the offer letter that nullifies the validity of the new hire’s employment.
It is your duty as an employer to provide your employee with all the necessary benefits. Some of the most common benefits received by employees are health and dental insurance, profit sharing, 401K, and leaves (sick and vacation). The percentage of deductions by these benefits are also reflected to ensure that the employee is aware of how much is deducted from the salary every payday.
All of this information will be discussed to the new hire before he/she is asked to sign the document. The offer letter will serve as a confirmation about what has been discussed, and by the time the new hire affixes his/her signature on the letter, it is implied that everything has been clearly understood. It will help protect you, as well as the new hire, should any misunderstandings arise.
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Accept or Decline?
Making a decision whether to accept or decline a job offer can be pretty tough for an applicant. Before accepting a job offer, there are ten things that an applicant should consider in order to make sure that his/her decision is final. It is not an easy task as he/she might need to weigh out the pros and cons of accepting the job you have offered. He/she might have gotten another job offer from another company, which will definitely make the decision-making task for him/her a lot harder.
If you want the applicant to give you a concrete answer, you may provide options at the end of the document that the applicant can fill out. You can also provide an instruction saying that they should send you a job acceptance letter or a decline offer letter alongside the offer letter, of course.
- Never promise job security. If you are offering a probationary status for new hires, never mention stability and permanence as it can be confusing and can also send the wrong message.
- Watch your language. Once the new hire signs the document, it can be pretty difficult to rebut any argument once he/she makes a complaint. It is important that you review the offer multiple times before presenting it to the new hire.
- Do not promise reliance. Your promises can lead to a new hire quitting his/her current job. Again, do not make promises that could lead to an employee to quit his/her job.
A job offer letter will itemize all the necessary information that you need to relay to the new hire in an organized manner. It helps to highlight what their responsibilities are and other facts about the job offer such as the salary and benefits. In a way, it is a sort of orientation for the new employee as it discusses all the basic information that he/she needs to know.
In every state, the basic salary and the benefits may also vary. It all depends on the laws of the state. If you are having a hard time figuring out what the taxation and other human resource information, you should definitely consult a legal counsel or a lawyer.
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