After the candidate has been through the interview process, the next step is to release or make an offer. An offer is an invitation from a company to the candidate to join on pre-determined terms and conditions. These terms and conditions are laid out in a letter format for the candidate to view and accept, this is an offer letter.
An offer letter is a contract between an employer and an employee which legalize the employer-employee relationship. An offer letter contains basic information such as the job role, designation, and salary it may also include information about the company and its culture.
An offer letter is an important document that needs to be reviewed by an employee before he/she accepts the offer. The terms and conditions laid out in that offer letter will become a part of the employment conditions and any changes made to that can invite legal action from both parties.
A job offer letter from the employer to the employee should include:
- Job title
- Job description
- Starting date
- Work schedule
- Reporting structure
- Salary (Compensation Bonus or Commission)
- Paid time off
- Employee benefits
- Privacy policies
- Termination conditions
These are the basic information that needs to be cleared before you enter into a contract. However, an offer letter is personalized from company to company. The offer letter also reflects your policies and the way you portray your company to the candidates.
Hence, it becomes important that you mention all relevant information in as much detail as possible to avoid any miss communication.
It is also important to get this contract legally vetted to find any loopholes in it. An offer letter will also act as a confirmation of the candidate joining the company. Drafting an offer letter can be tricky. Here’s an offer letter template by Springworks: