Offer Letter Template

The Anatomy of a Formal Offer Letter

Your formal offer letter is one of, if not your last, touch with a candidate before they’re hired. You’ve worked incredibly hard to find the perfect person for the job, and you want it to look good. But you also need to make sure that it has all the information that your candidate needs to accept the offer and complete the final steps of the hiring process.

Before you jump right to the formal offer letter template below, here are 7 important things you need to get right in any offer letter.

1. Position Title

It might seem redundant or obvious, but you do need to include the position title in the formal offer letter. Your candidate needs to know that they’re being accepted for the position they wanted, and that they’ve received the correct offer letter.

2. Employment Type

Be very specific about the employment type to avoid any misunderstandings. If the employment is standard, full-time or part-time, use those terms. Be careful to include details like the duration of temporary employment, temp-to-hire, or otherwise.

3. Starting Details

Your candidate needs to know when to show up for their first day of work. So, the start date and time is mandatory. However, also include information about where they’ll be working, what their work schedule will be like, and what they need for their first day of work.

This is especially important for employees who were hired via video or phone interview, since they may not know exactly where the work site is.

4. Supervisor

Tell the new employee who they’ll be working for. That way, they’ll know who to look for when they arrive on their first day, and they’ll have a bit of information to help break the ice.

5. Compensation

Now the important part. Obviously, your candidate needs to know how much they’ll be paid. This is where you mention the starting salary. Make sure you’re very clear about how they’ll be paid (hourly, monthly or yearly salary, commission, and so on), and when they’ll be paid (weekly, monthly, and so on).

Also, include any bonuses offered for the position. But be extremely clear about the requirements for receiving those bonuses. Clearly state that the bonus is not guaranteed, if that’s the case.

6. Employee Benefits

Compensation is more than salary, so spell out the rest of the package. List the health, dental, vision, and life insurance offered, when coverage begins, and what portion of the premium the employee pays. Include retirement benefits such as a 401(k) and any employer match, along with the vesting schedule.

Vacation time is also part of the benefits package. Remember to include details about paid time off, sick leave, holidays, and the policies that govern them. If any benefit depends on a waiting period or a minimum number of hours worked, say so here rather than leaving the candidate to discover it later.

7. Check the Legal Boxes

If it’s required in your state or by the company, include the required legal information:

• At-will employment. All states except Montana presume employment to be at-will.
• Exempt or non-exempt employment. Exempt employees do not receive overtime. Non-exempt employees are eligible for overtime.
• Additional conditions and agreements. I-9 forms, background checks, drug screening, non-disclosure agreements, intellectual property agreements, and similar.

The new employee is responsible for signing and dating the formal offer letter because it’s a legally binding document. So make sure that it’s clear and that all the information is included. That way there won’t be any hiccups for the company or the employee down the line.

Use this template to make sure your offer letter is spot-on.

Formal Job Offer Letter Template

Feel free to copy and paste this offer of employment template into a document and replace the italicized text with your own information.