Found it! The right candidate to join the team. Now what? Now comes the most crucial part of the play. It is sealing the verbal offer via an offer letter. An offer letter is a document sent to a prospective candidate, offering them a job in the company. It contains all the essential information ranging from the job title to the leave policy of the organization. An offer letter marks the beginning of an employment relationship and what starts well ends well. An effective offer letter should essentially incorporate the following details
1. Job title and description
Fundamentally, what is the employee’s designation in the organization, and what is he expected to do? Elaborate on the roles he is required to perform. A prior understanding of the job role helps the employees to prepare themselves for the role. This helps to avoid initial delays in work.
2. Date
The offer letter should mention all the important dates such as the joining date and the date of orientation. It should also specify the intervals at which the firm will evaluate the candidate’s performance. Information like this is likely to be missed or forgotten after the interview. Stating them in the letter helps to avoid any sort of confusion or misconceptions.
3. Benefits
The most crucial and the most specific detail of an offer letter should be the benefits derived from the employment. Right from compensation to social welfare activities undertaken by the firm for the betterment of the employees. This will create a sense of eagerness and positive attitude in the mind of the employees about the firm and they look forward to joining it soon.
4. Company policy
Yet another important component of an offer letter is the company policy and culture. The candidate needs to know what sort of work environment he is about to be introduced to. A detailed elaboration of the company policy is not required, just a short and crisp statement that employment is subject to company policies.
5. At-will employment clause
It is important to state that the employment is at will and both the employer and the employee have the right to terminate the employment relationship with or without prior notice. It is preferred not to include any implications or expectations about the tenure of the employee.
6. Confidentiality agreement and noncompete clause
A Confidentiality agreement is like an undertaking by the employee to not breach any confidential information of the firm and also refrain from any unauthorized usage of the same. The non-compete clause helps in the maintenance of a healthy employment relationship. The employee’s agreement to not engage in any activity that might prove to be competition to the current employer helps in maintaining a healthy relationship with the employer.
7. Contingencies
Vigilantly mention that the offer is contingent upon a background evaluation a reference check and any other parameters mentioned in the company policy and also proof of the employee’s capacity to work in the country. Also whether they comply with all the rules of the state.
Offer letters can be of either of the following types
- Verbal offer letter
- Formal offer letter
- Informal offer letter
- Provisional offer letter
- Conditional offer letter
- Unconditional offer letter
- Implied offer letter
- Contract employee offer letterÂ
- Internal job offer letter
- Part-Time job offer letter
- Internship offer letter
Verbal offer letter
A verbal offer refers to a very informal conversation that happens between the employer and the employee in which the latter expresses his desire to employ the candidate for a specific job. The candidate in response either accepts or rejects the proposal. There is no evidence of such conversation so there is no chance of verification.
Formal offer letter
It is a notice in writing that intimates the employee about the employer’s desire to offer him a job. A formal offer letter serves as proof of communication between both parties. Employee and the employer can trace back to any clause mentioned in the offer letter. Since it serves as proof neither of the parties can deny any action or agreement done by them.
Informal offer letter
An informal or email job letter is one that the employer sends to the candidate offering him a job, and the candidate replies to the mail with his acceptance or rejection of the offer. Unlike verbal offers, email offer letters serve as proof of the former’s communication with the latter.
Provisional offer letter
A provisional offer letter or a temporary offer letter does not offer confirmed employment rather it is a condition upon the meeting of which the candidate can join employment. If the condition is met the offer stands valid on the contrary the offer shall lapse or become invalid.
Conditional offer letter
A conditional offer or a restrictive offer letter contains certain conditions in it. Only once these conditions are met will the offer become valid. The acceptance or validity of the offer is restricted by certain conditions.
Unconditional offer letter
An unconditional offer letter is one with no conditions or restrictions. It is the final offer letter after the acceptance of which the employer and employee enter into an employment relationship. It also shows that the candidate has met all the requirements of the job role.
Implied offer letter
When an employer through a letter implies his willingness to offer a candidate a job then the letter is an implied offer letter. It shows by action or words the former’s desire to employ the candidate in his firm.
Contract employee offer letter
A contract offer letter just like any other offer letter contains the details of the employment or the job role in depth but it also includes the period for which the employer is employing the candidate, i.e the contract period. Such offer letters are provided for contractual basis jobs.
Internal job offer letter
It is common for firms to fill in new job vacancies by transferring or promoting existing employees to fill in these positions. An offer letter generated to such an employee is known as an internal job offer letter. The purpose of the letter is to make the transfer or promotion official. It may also include any addition to the existing job roles performed by the employee and any increase in compensation.
Part-Time job offer letter
An offer letter in which a candidate is offered a job on a part-time basis. It necessarily includes the working hours during which the employee is expected to work.
Internship offer letter
It is a letter provided by an employer to a candidate offering him an internship opportunity in their firm. The offer letter is to hire an intern suitable to fill the job vacancy.
Offer letters play a very crucial role in sealing the employment relationship not only legally but mentally as well. The employer gains a sense of satisfaction that he has found the right candidate for his firm and the candidate is motivated as he is convinced that the employer shall provide him with all the benefits mentioned in the offer letter. There exists a sense of mutual agreement between both parties to offer the best compensation for each other’s contribution.