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.
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.
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/yearly salary, commission, etc.), and when they’ll be paid (weekly, monthly, etc.)
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
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 the company pay periods including how they’ll be paid (hourly, monthly/yearly salary, commission, etc.), and when they’ll be paid (weekly, monthly, etc.)
The vacation time is also part of the benefits package. Remember to include details about paid time off and vacation policies.
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. Exempt employees are eligible for overtime.
- Additional conditions and agreements. I-9 forms, background checks, drug screening, non-disclosure agreements, intellectual property agreements, etc.
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.
Dear [candidate name],
We are excited to offer you the [position title] position with [company]. Please review the details, terms, and conditions of employment before signing the job offer.
Your start date will be [start day and date] at [start time]. You will be reporting to [supervisor]. This is the work location address:
[work site address]
This is a [full-time/part-time/temporary] position. Your anticipated schedule is [working days and times].
The offered compensation for the work is [salary per hour/month/year]. A [benefits, i.e. health, dental, etc.] benefits package is also offered as part of your compensation.
You will be entitled to [number of vacation days] paid days off per [year/month]. Additional vacation and sick day policies will be outlined in your onboarding package.
Lastly, please complete the attached documents ([specify documents to be completed, i.e. I-9, background check authorization, drug screening agreement, etc.]) and return them with your signed job offer.
This job offer is valid until [job offer expiration date].
Feel free to contact [name of hiring manager, direct supervisor, or most relevant contact] at [contact details] if you have any questions regarding your job offer.
We look forward to having you on the team!