Recruit
All the hard work of listing a job, finding applicants, and conducting interviews doesn’t come to an end just because you decide which candidate you’d like to offer a job. Now, you need the candidate to accept your offer. Even if you came to an informal agreement at the final stage of interviews, this is no time to rest on your laurels — until you have a signed contract, you haven’t filled the position.
Key to ensuring your top candidate accepts the job is the letter of offer. Setting out the conditions of the job offer, the letter of offer is the first step toward formalizing the agreement. The candidate may agree outright or use the letter as a starting point to negotiate more favorable terms.
What to Include in Your Job Offer Letters
Each job offer letter will be slightly different, depending on factors like the type of detail you want to provide, the information the candidate needs to know, and how formal you wish to be. In general, though, a letter of offer should include the following.
Details of the Job
Even though you’ve likely discussed the key details of the job with the candidate in your interviews (plus, many details will have appeared in the job post), you should repeat the information in your job offer letter. These details consist of the:
- Job title
- Type of employment, such as full-time or part-time, permanent or fixed contract, in-person, remote, or hybrid
- Main duties and responsibilities
- Work schedule
You may also like to explain the reporting structure and mention the name and title of the employee’s supervisor. Lastly, you should specify the start date, along with the location (if it’s an in-person position).
Compensation Package and Benefits
The compensation and benefits part of the offer letter is your chance to make the position as appealing as possible and differentiate your company from competitors. Mention forms of compensation beyond salary, like commissions, bonuses, equity, and stock options. In addition, list all the benefits you provide — from paid leave, insurance, and retirement plans to flexible schedules and employee perks.
Contingencies for the Offer
You likely have some contingencies for the job offer to stand. Some common contingencies include background and reference checks, the employee signing a nondisclosure agreement, proof of right to work, and a lack of no-compete agreements with other employers. Even with these contingencies, it’s worth mentioning that the letter of offer is not legally binding, as there is always the chance you will need to rescind the offer for another reason.
Offer Expiration Date
You won’t be able to wait indefinitely for the candidate to respond to your offer letter. Set a deadline, after which you will offer the position to another candidate. One week is typical, but you could set a tighter deadline if the position you’re filling is particularly urgent.
Best Practices for Crafting a Letter of Offer
In addition to including enough relevant information, encourage candidates to agree to the offer by crafting a persuasive letter.
Make Sure a Candidate Is Interested
Before you go to the effort of writing a letter, it’s worth checking if the candidate is interested in accepting the job. You may have gauged this in the final interview or you may need to make a quick phone call to find out.
Use Your Company Letterhead
Although it’s now common to send letters of offer via email, including your company logo as the letterhead is still good practice, as it comes across as more professional. In fact, you may like to send the letter as a separate attachment rather than making it the body of the email. Although this is not essential, it will give the letter extra weight.
Add Contact Information
Under the letterhead, include your contact information. This should consist of the name and title of a point of contact followed by the company name, address, phone number, and email. Underneath, list the contact information of the candidate.
Strike the Right Tone
Think carefully about what impression you give through your letter of offer. By this point, the candidate will have interacted with your organization on several occasions but will still be learning about what to expect in terms of company culture. The offer letter is an opportunity to continue with your employer branding and show candidates why they should want to work for the company. Bear this in mind when deciding on tone of voice and level of formality.
If you’re hiring candidates from abroad, English may not be their native language. Make sure you use words and phrases they are likely to understand. In particular, avoid jargon, with the exception of any industry-specific terminology.
Welcome the Candidate to the Company
Open your letter by congratulating the candidate. Talk about the job as an exciting opportunity. Follow this with personalized details for the individual candidate to show that it’s not a boilerplate message. Mention specifics that led you to choose the candidate, such as his or her past experience, skills, or enthusiasm to work for your company. You may also like to emphasize how the position meets the candidate’s career goals.
Make the Content Readable
A block of text is imposing. To ensure candidates read everything, split the content of the letter up into short paragraphs to introduce more white space. If you need to include a large amount of information, consider using subheadings or using bullet points. However, it’s better still if you keep the information to a minimum to avoid overwhelming the candidate.
Sign Off Appropriately
End the letter reiterating your excitement about having the candidate on your team. Include contact details for HR or the head of the department where the candidate will be working. Invite the candidate to call with any queries.
Proofread Letters Before Sending
It’s crucial that your letter of offer is error free. Typos look unprofessional, whereas mistakes in something like the job details and contact information are frustrating for the candidate. Proofread letters of offer before you send them. Ask a second person to double-check and perhaps help with ideas to make the letter flow better.
Consult with an Employment Lawyer
It’s worth asking an employment lawyer for input about your letter of offer. This will ensure there are no parts that the candidate could misconstrue, potentially landing you in legal trouble. It’s particularly important to receive advice if you’re hiring abroad, where standards and legal requirements will be different than what you’re used to.
Dealing with Rejections
It’s frustrating when a candidate declines a job offer — especially if no one else is lined up as a backup option. There are several reasons why this may happen that are out of your control and are just an unfortunate fact of hiring.
However, if a high percentage of your offers are turning into rejections, you need to consider what you may be doing wrong. You can then determine where to make changes to the hiring process.
Low Salary
If you’re a small company, you may be unable to offer a competitive salary. It’s a good idea to make compensation clear from the start to avoid disappointing candidates when you provide them with an offer. In return, you may need to accept applicants who have less experience or who will require more training on the job.
Lack of Opportunity for Progression
The opportunity for progression may be out of your control. This is not necessarily something negative, as some candidates may be happy to remain in the same position indefinitely — not everyone is looking to rise up the ranks. However, it is important to make it clear whether or not there are opportunities to advance from the early stages of the hiring process to avoid wasting candidates’ time and your own time.
Poor Candidate Experience
Candidates use the hiring experience to gauge whether they’d like working at the company. If they have a negative experience, they may turn down your offer — especially if they have other options. Consider where you may be falling short. Some possibilities include poor interview technique, lack of communication, and requesting too much information from applicants in the early stages.
Competing Job Offers
If a competitor is also looking for similar positions, you’ll need to work twice as hard to attract top candidates. You may lose out to a competitor for any of the above reasons. It’s worth asking candidates the reason why they are declining your offer to see if you can improve your terms. For instance, if you lose out to a competitor who’s offering a higher salary or better benefits, consider if you could improve the compensation (if this is within your budget). If it took you too long to provide the candidate with the offer, look for ways to speed up the hiring process.
Of course, you’ll have less competition if you widen your search. When it’s possible to carry out a job remotely, consider if it makes sense to hire abroad.
Counter Offers from a Current Employer
It’s even more difficult to compete with a candidate’s current employer. The candidate may have only applied to your job to use an offer as leverage. Unless you can come back with an even better offer (which may include a better working environment), it may be hard to convince the candidate.
Speeding Up Time to Hire Across Borders
Typically, you send a letter of offer before you request references, carry out background checks, and provide the candidate with a contract. In other words, there’s still quite a bit of the hiring process left to complete. If you’re hoping to fill a position as soon as possible, this may be frustrating.
It’s often much faster to hire employees when you use an external recruiter. Remote People goes a step further by providing you with access to talent based all over the globe, the majority of which is fully remote. Within five days, we’ll provide you with hand-vetted candidates that match your requirements. We’ll then hire the talent you want on your behalf, acting as your employer of record — this simplifies the hiring process as well as payroll, benefits, and tax compliance. Request a proposal to start the process.
