What Needs to Be Included in a Job Offer Letter?

By hrlineup | 26.04.2021

Recruitment managers have to go through numerous processes when seeking the best candidate for an available position. One of the final and most crucial is giving the new hire a formal job offer letter.  However, do they understand what needs to be included in a job offer letter? This article answers this question for you.

The job offer letter lets a candidate know that the company has chosen them to take up a position, and also acts as an invitation to ensure that the best possible candidate will accept the job. To accept the job offer, it needs to be signed by the candidate as an acknowledgment that they are ready to take up the new position.

What is Included in a Job Offer Letter?

An employer may make a job offer through a phone call or email text. However, they need to follow through with a formal letter which entails what a candidate is to expect should they take the offered position. The letter will also state whether it’s contingent or not allowing the candidate to prepare themselves for the conditions attached.

Attention to detail is essential when putting together job offer letters. This document is for lasting reference, and other hiring documents contain information from the offer letter.

That being said, below are the things your job offer letter must have:

  • Company Logo

To ensure that the letter is formal, it has to be on the official letterhead of the company. Unless candidates are far away, the offer letter is often a physical document rather than a digital one.

  • Date and Contacts

The full name of the applicant and their contact details should appear at the top of the letter. This ensures that any error is identified early.

  • Job Title

This part identifies the job that is on offer. The job title can be put in the subject and the first paragraph of the offer letter.

  • Job Description

Offers a brief description of the job responsibilities and role of the potential employee.

  • Date of Commencements

Details for the first date on the job.

  • Reporting Structure

Reveals who the new hire will be reporting to in the workplace. This ensures that the new hire knows the name of their supervisor or manager from the very first day on the job.

  • Compensation and Benefits

This includes the expected salary, medical, retirement, and other benefits that form part of the employment package.

  • Termination conditions

This section provides information on termination, including whether a contract may need a signature for full job confirmation.

A verbal offer often precedes the offer of employment. Once an employee has agreed to the verbal offer, a written job offer letter follows. This letter will only be issued once a range of checks has been carried out, and the new hire is eligible to begin working in the company.

There is always a time limit within the employment offer letter so that the candidate knows when they need to reply. Recruiters assume that if the reply does not come by this date, then the candidate is not interested in the position. At the end of the letter, the contact details of the recruiter are included in case the candidate needs to reach out for more information.

Candidates need to note that the offer letter is not an employment contract, even though one needs to sign to accept it. It does not offer any protection from termination and can also be rescinded as the potential employer sees fit.

Refer to these links for job offer templates:

https://www.smartrecruiters.com/resources/glossary/job-offer-letter-template/

https://resources.workable.com/tutorial/job-offer-letter-template-examples

FAQs:

  • What are the facts to be included in a job offer letter?

A job offer letter should be detailed with company and job information, including what the job entails, responsibilities and reporting structure.  It should also have termination conditions.

  • What is an offer letter?

An offer letter is an invitation to accept a job position. Note that an offer letter is not a job contract, and an employee needs to sign it to show their willingness to take up the job offer. 

  • How to write a job offer letter?

Start by including your company’s logo and job title. You can then proceed to congratulate them for being considered for the position. In case it’s a conditional letter, make sure to include it together with other responsibilities in the offer letter. 

  • Does an offer letter mean I got the job?

No. An offer letter is not a job contract, and the employer can withdraw it anytime. For example, if it’s a conditional letter, it automatically becomes invalid should a candidate fail to meet any conditions attached.

  • How long does it take for HR to approve a job offer?

Usually, the HR manager should approve a job offer within 7-14 days. 

  • Can an employer take back a job offer?

Yes. If an applicant does not meet the conditions in the offer letter, the employer can take it back. An employer can also withdraw the offer before a candidate sign it.