One might ponder what constitutes as one of the most challenging tasks for HR professionals? The answer lies in a core function ensuring the onboarding of suitable individuals into the organization: Recruitment and Hiring. The recruitment process demands considerable time and effort from HRs, involving meticulous resume review and numerous interview rounds to select the ideal candidate. However, the journey doesn’t stop there. After the arduous task of candidate selection, HR managers must craft a tailored job offer for the chosen individual post-recruitment. Employers often extend a job offer letter, sometimes known as a Letter of Intent, to prospective hires, ensuring the candidate’s formal acknowledgment of a position within the company. This formal offer typically comprises a sample job offer email accompanied by an attachment outlining employment terms and important details of employment.
What is an offer letter?
An offer letter is an official document and a formal invitation that is given to a candidate who has been selected for a job position in an organization at a specific designation. Also known as an employment offer letter, it includes key details about the job such as the job details, salary & other compensations, benefits, deductions, guidelines and policies, etc. Different organizations have different company policies to offer jobs.
If the job is offered verbally, the selected candidate gets a call from the managers. Sometimes organizations also send an e-mail or a write-up to the selected candidate. But whichever policy is adopted by the organization, in the end it has to be followed up by a formal job offer letter agreement where the details of the job employment are clearly specified in a proper letter format.
Detailed Job Offer Letter
Here, we have created a sample offer letter from actual job offer letters that are given to employees in different organizations. This letter consists of the following details –
- Job Assignment: This clearly outlines the specific duties and responsibilities expected of the employee within the company at a specific post
- Place Of Employment, Transfer And Timing: Define the primary work location, conditions for potential transfers, and the schedule or timing expectations (work durations)
- Salary, Allowance And Benefits: Detailed compensation package, including base salary, bonuses, allowances, and any additional benefits such as healthcare and other perks offered by the company
- Reimbursement Of Expenses: Clarifying the process and terms for reimbursing any work-related expenses incurred by the employee.
- Leave Entitlement, National & Public Holidays: Specifying the employee’s entitlement to various types of leave, including vacation, sick leave, national, and public holidays.
- Tax: Explain the employee’s tax obligations and any applicable deductions or withholdings
- Retirement: Outline retirement benefits, pension plans, and any other provisions related to the end of employment
- Employee’s Obligations: Defining the responsibilities and conduct expected from the employee during their tenure as an employee
- Confidentiality And Intellectual Property Rights: Providing guidelines for protecting confidential information and how to delineate ownership of intellectual property created during employment.
- Engagement In Other Business: Addressing any restrictions regarding the employee’s involvement in other business activities during their employment with the company
- Non-Compete And Non-Solicit: Specify any restrictions on the employee’s ability to compete with the company’s business model or solicit its clients or employees post-employment
- Other Provisions: Cover miscellaneous terms and conditions not addressed in the aforementioned sections
- Annexures For Code Of Conduct And Policies: Specifying detailed supplementary documents such as a code of conduct or company policies for the employee’s reference and compliance.
Download the Detailed Offer Letter Format in Word file and PDF format below.
You can also download the joining letter in PDF format below.
Importance Of Job Offer
So you were successful in finding the perfect candidate for the vacant position. But what’s next?
The next step is to put that job offer in writing. Job offer letters initiate the employment relationship with an employer. Now you have to craft details about the roles and responsibilities of the candidate with the perks offered by your organization to the employee, just make sure you don’t end up promising more than you can deliver.
Here are 9 different offer letter templates based on various scenarios
1. Offer Letter Email Template
If you have found the perfect candidate for a particular position in your organization, then a general job letter should do the job for you. The template can be customized according to the details you think will be applicable for that candidate to turn his/her response in your favour.
You should draft the letter in such a manner that all the possible details that could be required by the candidate are properly mentioned like position details and salary details, etc.
If you have certain company policies and norms that you would like to convey, you can attach that as well with the offer letter email along with documents such as KYC details that are required to be signed by the candidate, should they accept the offer.
Here is a template you can download and edit by clicking below.
2. Informal Job Offer Template
This kind of job offer is not as comprehensive as the formal job offer. It is a brief version of the standard official employment offer. An informal job letter consists of terms and conditions that are agreed upon with the candidate at the time of the hiring process. This letter enables the candidate to acknowledge your offer via email.
This letter sample will be less formal and will cover the basic details of the job offer before sending the comprehensive one. Being clear about the position of the candidate and its related details for both the employer and employee is the right direction to start on a good note. Won’t you agree? So, here is a template for you that you can use when authoring a job position for the selected candidate.
3. Part-Time to Full-Time Job Offer Template
There can be certain instances where you would like to switch a part-time employee working at a particular position in your company to work as a full-time employee. But how do you formally make an offer for this position to the candidate? We have curated the perfect template for you to send to the said candidate with all the detail that can be required for this proposal. While sending this letter sample you need to make sure that the candidate is on the same plate as you and is ready to agree to the company policies applicable to a full-time employee.
Here is a template you can download and edit by clicking below.
4. Warm-Up Job Offer Template
There are a lot of instances where you conduct an interview and select a candidate but you still want a face-to-face interview with the candidate to discuss the important details regarding the employment terms and conditions. In such cases, you can send a warm-up offer letter to discuss and negotiate with the candidate on a one-on-one basis. Here is a template you can download and edit by clicking below.
5. Internal Job Offer Template
Sometimes you might offer new positions in your organizations internal job postings that are perfect for the employees already working in your company. Even though it is for an existing employee, the company has to issue a formal letter stating the change in position and the details adhering to it.
The HR Team sends an offer letter to make the offer official and follow standard company procedures to make it legal.
Pro Tip: You can keep the email tone positive to get the employee excited and motivated for the new job role.
Here is a template you can download and edit by clicking below.
6. Workable Job Offer Template (Contract Employee)
This template is used by the HR of the company to send to the new employees in a team. The workable offer letter has a limited validity period. The selected/potential candidate or workable get this formal offer letter from the HRs of the company.
Here is a template you can download and edit by clicking below.
7. Internship Offer Letter Template
Some companies offer a position to the freshers or students who have recently graduated or are seeking to increase their knowledge in the form of internships. The duration of this type varies from 3 months to 6 months depending on the company’s requirement. It has become a very popular route to take a qualified candidate as an intern and give them knowledge and hands-on experience in their field of interest. Most companies are following this practice and we have a template that will help you if you want to send an internship offer to a candidate.
Here is a template you can download and edit by clicking below.
8. Part-Time Job Offer Template
Part-time jobs are contract-based jobs wherein a potential candidate does not have to report to office 24*7.
The working hours are pre-determined by the employer which is usually a fixed number of hours each day or each week.
Here is a template you can download and edit by clicking below.
9. Layoff Letter Template
Sometimes the HR/Manager of a company has to let go of some employees due to reasons varying from one company to another. In such cases, a layoff letter is given to that employee stating the reason and the date it will be effective from (date). This type of letter is issued by a company when they need to terminate an employee with reasons not directly related to the job performance or the professional behaviour of that candidate. Restructuring, economic factors, mergers, allocations, buyouts, etc are some examples that can lead to this step by the managers for a candidate.
Here is a template you can download and edit by clicking below.
How to Write An Offer Letter?
A job offer letter is sent by the employer to the potential hire which ensures and warrants the candidate receiving the letter, for a position in the organization. The formal offer of employment includes a sample job offer email along with a formal job offer attachment that covers the employment conditions and other relevant information.
Basically, a job offer letter includes details of employment such as:
- Job Title
- Job Description
- Reporting structure
- Starting date
- Work schedule
- Leave Policies
- Base salary
- Bonus and Commissions
- Employee Benefits information and Eligibility
- Privacy Policies
- Confidentiality and Intellectual Property Rights
- Acknowledgement of offer and confirmation of acceptance. (Acceptance Letter)
You can understand more details about how to create offer letter by using the template shared above.
Things to consider before making offer letter –
1. Company Logo
Make sure you use the official letterhead of your company with the logo. This will ensure professionalism and make your letter legitimate, encouraging the candidate to read the terms thoroughly.
2. Date And Contact Details
The date, full name of the candidate, and the address of both parties should be clearly specified in the email offer letter.
3. Opening Line
Depending on your company culture, you can make the tone of the opening line formal or casual.
4. Specific Details About The Job
This section of the standard offer letter includes the job title, expected start date, job location (remote or office), the type of employment (full-time or part-time), official address of the company, name of the supervisor or manager, and the terms and conditions of the company.
5. Contingencies
If the offer letter is contingent on the candidate completing certain documents or performing tasks, you need to mention it in the letter. This can include a background check, drug test, I-9 form, reference checks, etc. This can be collected even for purpose of health insurance offered by the company.
6. Salary
This includes the explanation of the annual salary structure of the candidate and the mode of payment. If you want you can also include the bonus and commission structure as well.
Note: The candidate has the right to negotiate the salary structure before joining your company.
7. Benefits
Provide a summary of the key benefits of the company that is provided to the employees.
This can include medical insurance, dental insurance, maternity leaves, health insurance, vacation time, or work-from-home options in certain circumstances.
8. Expiry Date
It depends on you if you want to include an expiry date in the offer letter.
If you wish to include one, make sure to keep it valid for at least one week, giving a chance to the candidate to properly evaluate the pros and cons before joining the company.
It also gives you time to find other prospects in case your preferred candidate does not accept the job position.
9. Signatures Required
It is important to make sure that the letter is authentic and mutually agreed upon by you and your potential hire.
A signature space should be included in the letter for such purposes.
If you do not have a dedicated HR manager for the same, the CEO or MD can sign the letter if the applicant accepts the job offered.
10. Closing Line
It is imperative that you include the details of the person whom the employee can connect to further for queries regarding the policies and offer letter. You should also include contact details of the reporting manager so that the employee can connect with them for further clarifications on the role. You should also include the name and contact details of the HRBP (Human Resources Business Partner) representative for the specific department and the exact steps of onboarding, orientation and handover details to the candidate for an exemplary job onboarding experience for the employee.
Final words:
Keep the tone direct and positive. Let the candidate know that you acknowledge their skills and experience they bring to your company. This encourages the potential new employee to accept the offer, and if not, then it gives them the confidence to look for other potential opportunities without hampering the reputation and relationship with a company.
It also serves as a legal agreement between the employee and an employer, so you need to make sure all the details in the agreement are legit and in accordance with the company policies.Every organization may have different situations that can require different job letters for employees. Being clear about the position offered to a candidate is key to maintain a healthy relationship between the organization and employee throughout the employment period
Keeping that in mind, you have collected the data required to draft a sample offer letter.
Frequently Asked Questions ( F.A.Q.)
1. Is a job offer legally binding for a candidate?
Landing a job offer is a huge thing in this competitive economy. So if you get an offer letter, give yourself a cheer or two because you deserve it.
But before you sign the offer keep in mind that you are signing a binding contract with the said company. So as a candidate you need to read all the terms mentioned in the letter before signing it.
Once someone accepts an “unconditional” offer letter, they are in a legally binding contract with the company.
However, a conditional offer letter can be withdrawn if the candidate does not meet the requirement of the employer.
2. What is the difference between an offer letter and a contract?
Many people assume that an offer letter and contracts are one and the same thing. But they are not.
A job offer letter is a formal letter that contains the terms of employment.
A contract on the other hand gives out the roles and responsibilities of the candidate with an employment period.
However, both require the employee’s signature.
3. Can an employer take back a job offer?
Yes, an employer has the right to take back an offer at any time provided it is not accepted by the candidate.
4. When to send a formal job offer letter or a job offer email to a candidate?
Before sending a formal document, the candidate is usually contacted via phone.
Only when the potential candidate verbally accepts the job offer, a formal letter from the employer to the employee is sent to make the deal official.
