What is an Offer Letter?
Technically speaking, the job offer letter is a formal document provided by the employer to a new employee to ‘offer’ them a new job position at the company, and as such, it contains all the terms and conditions of the position being offered as well as the duties and responsibilities of the same along with the remuneration details for said position.
Most offer letters would also come with a validity period within which the employee needs to confirm the acceptance of the job offer, failing which, the offer is supposed to be null and void.
However, even if there is no validity period mentioned on the offer letter, it is assumed that it is valid only until the day of joining mentioned on the offer letter itself.
If the employee fails to show up on the joining date and fails to provide a reason for the same, the company considers the offer to be invalid.
The job offer letter can also provide the candidate with essential information regarding the company culture and employment experience. It can also give an overview of the daily duties that the candidate is expected to perform, which will provide them with a heads-up and prepare them for their daily work.
One needs to understand that the offer letter is not a guarantee of employment for a specific amount of time and some companies might provide the offer letter in the form of a job offer email, however, it has the same importance as a physical offer letter.
What Will Be the Components of a Job Offer Letter Template?
An offer letter is important for every onboarding scenario. At the time of crafting the mail template, the organization should concern about multiple components. Those must be related to either trending laws and policies or some essential information and convenience for the employee.
Some of the common components of job offer letters are:
1. Job Description
The job description provides the details of the daily duties, which the new employee is required to perform daily. It might be provided in a single line or provided as a list of bulleted pointers and in some cases, it will also contain the working hours along with the type of employment such as part-time or full-time.
2. Joining Date
The joining date or the start date needs to be mentioned in a job offer letter to let the employee know when they need to come to the company for their first day of work.
Some companies even provide the address and directions for reaching the office premises to make the process even easier for the candidate to come to the office on the start date.
3. Reporting Manager Details
As most offices have a hierarchy structure, it is important to mention whom the new employee would be reporting to, as having these details would also make the onboarding process smoother for all concerned parties.
4. Salary Details
Most companies have a pre-defined salary structure and it is best to present it to the employee in a tabular format for easy comprehension.
5. Bonus and Commissions
The bonus and commissions section might be included either on the body of the offer letter or provided as a separate annexure for the employee’s reference.
6. Additional Benefits
Companies nowadays provide their employees with multiple extra benefits to attract the best talent and hence, these benefits need to be clearly outlined along with the bonuses and commissions’ annexure.
A clear distinction needs to be provided on the annexure to help the candidate distinguish between these two benefits to avoid any confusion.
7. Leave and Holiday Details
The leave and holiday details are an optional part of the offer letter which can be provided as another addendum, which helps the employee plan their work and personal decisions by including their new company.
What is Included in an Offer Letter Format from the Company?
An offer letter with a proper description provides a detailed overview of the hiring position and the company. It includes the start date, salary, work schedule, benefits and more of the company.
A proper format for a job letter maintains professionalism and branding. It not only leads to candidates’ satisfaction but also helps to maintain the company retention rate.
If your organization don’t have the proper format of an offer letter, you can follow the elements described below to fit your workplace and the roles you’re hiring for.
The company logo is always important. Adding the company logo to your email format improvise the company branding, recognition, professionality, differentiation, brand consistency and marketing opportunities, etc.
A perfect company logo helps create a consistent and visually appealing brand experience for recipients, ultimately contributing to the success of your email communications.
Date and contact information
Input the right date and proper contact help to make clarity and professionalism of the organization. The proper date helps to remind you about your email and enhances communication efficiency. It establishes accountability, meets the legal requirements, and more.
It ensures that recipients have the necessary information to respond or reach out to you if needed, ultimately contributing to effective and productive email exchanges.
A precise greeting or opening line should be impressive so that the receiver opens the mail instantly after going through the opening line. At the time of crafting the greetings. things should keep in mind;
- Use concise language
- Using numbers instead of words
- Make people feel special
- Make it relevant and exciting
- Draft multiple opening line template
- Make it Personalised
- Use your company’s tone and language
maintaining job details in an email template ensures clarity, efficiency, professionalism, compliance, and positive candidate experience, and serves as a reference for future documentation.
It streamlines communication, reduces the chance of errors or omissions, and contributes to effective recruitment and hiring processes.
Detailed compensation should be in written format for future documentation. Compensation in mail format assures the clarity and professionalism of the company.
it doesn’t only promote transparency, it facilitates authenticity, aligns expectations, saves time, provides a competitive advantage, ensures legal compliance, and aids in record-keeping.
It helps create a clear and efficient hiring process while facilitating informed decision-making for candidates.
Also Read: A Guide to Compensation Management in 2023
If you start with a relevant and outstanding opening line. It would be greater if you closed with a perfect professional outro. Showing politeness and courtesy highlights that you provide value for the receiver’s time and attention.
A closing mostly includes a signature that includes your name, job title, and additional contact information.
Including an email signature in your closing provides a convenient and professional way for the recipient to identify you, your role, and your organization.
Examples of common email closings include:
- Best regards,
- Thank you,
- Kind regards,
- Yours faithfully,
Often in case of any confidential message, helps to protect you from any kind of charges of breaching or violating rules or policy.
If the email is sent to someone else by mistake, they can also be informed that the contents are not meant for anyone apart from the intended receiver.
What is the Importance of Having an Offer Letter Format Template?
These days offer letters become more professional and innovative. Companies have pre-defined job offer letter formats and prepare offer letters prior to the requirement. Such offer letter formats not only make uniformity with specific tweaks but also candidates depend on their profile and employment details.
Offer letter format templates become handy so the organizations can use them for multiple onboardings. It helps in speeding up the recruitment process within a minimal time period.
A proper format of the offer letter helps to gain the trust of the candidate’s side and help them choose you over other companies.
Moreover, having a good job offer letter format also ensures that you need not spend time proofreading for several candidates since you are simply changing the relevant details based on the recipient of the offer letter.
Avoid Contractual Implication
Once the candidate signs the official job offer letter, it confirms that he/she has accepted the job. However, if the job offer letter email implies and contractual agreement, you will be forced to fulfil those terms, even if the relationship is short-lived.
If you have any questions, you should discuss them with the hired candidate beforehand.
- In the job offer email template, make sure that you mention that the employment is at will.
- Before sending the job offer letter email to the candidate, make sure that it doesn’t consist of the term indefinite term of employment.
- While drafting the job offer letter email template, avoid giving guarantees of future earnings. If your company fails to fulfil the terms and conditions of the earning guaranteed, it might end up in a lawsuit.
- Get the job offer letter email reviewed by your legal department. Make sure they go through the terms and conditions of the job offer email template to see if there are any statements that could cause legal ramifications.
Once the job offer letter is sent, the selected candidate can either accept it or decline it. If they accept it, they will sign the copy and either scan it and send it, or send it via post. Thus, it is very crucial to structure the letter sample strategically, to avoid any miscommunication.
One of the essential points of writing an email format template is the company gets the legal compliances. It highlights the contractual relationship and obligations between employers and employees.
Clarifying compliances like terms and conditions of employment, including compensation, benefits, working hours, responsibilities, and other relevant details, email format template establish a clear understanding of the employment relationship.
Besides, Often Email templates comply with applicable employment laws and regulations. These laws vary by jurisdiction but often cover areas such as minimum wage requirements, overtime pay, non-discrimination, equal opportunity, and other aspects of the employment relationship. Adhering to these laws helps protect both the employer and the employee and ensures fair and lawful employment practices.
Maintain Professionalism and branding
A well-crafted offer letter reflects positively on your organization and reinforces a professional image. A template allows you to create a polished and well-structured document that emphasizes the job offer’s terms, benefits, and expectations clearly and effectively.
And, an offer letter also provides n opportunity to reinforce your company’s branding and values. By using a consistent template, you can include your company logo, branding elements, and a well-crafted message that aligns with your organization’s values and culture.
Hire the Right People Fast
It takes months to find the right candidate for a job role and imagine losing them due to a poorly written job offer email template. If the process gets stalled, they might find a job somewhere else.
Ultimately, you should go for a job offer email that can be customized according to your company’s needs and requirements. It is very important to make a well-drafted letter sample, because not only does it speak about your company, but also saves you from any legal complications.
Sample Job Offer Letter Template:
Dear [Candidate Name],
We are pleased to offer you the [full-time/part-time] position of [Job Title] at our company, [Company Name]. We feel that your skills and background will be valuable assets to our team and look forward to a fruitful relationship. You will be reporting to [Manager Name], who is in the position of [Manager’s Job Title] at [Company Name].
Your date of joining will be [Date]. As part of this offer of employment, you will be paid on a monthly basis, an annual gross salary of [Annual CTC]. This letter has an enclosed employee handbook that outlines the additional medical and retirement benefits that you will be eligible for.
You will be able to find the other details such as leaves and holidays you will be eligible for, in the handbook and hence, kindly keep it with you for any reference throughout your employment with [Company Name].
If you choose to accept the job offer along with the terms and conditions of the employment provided in the annexure, please reply by signing and replying with a copy of this letter to confirm your acceptance of this offer.
We look forward to welcoming you as an esteemed member of the [Department Name] team!
If you have any questions, please feel free to contact me at any time via phone on [Phone Number].
Kindly note that if you are unable to reach our office on the aforementioned start date for any reason, please share the reason for the same with us beforehand. Failure to do so might result in this offer becoming null and void.
[Your Job Title]