What is a Job Offer Letter?
When the employer finds the right candidate, he contacts them with a job offer. Mostly the HR department calls the chosen candidate and lets them know about the job offer. The job offer is also sent to the candidate via email or in writing. Job offer letter may not always be an employment agreement, an offer letter:
- Offers a position to the selected candidate
- Includes the main terms and conditions of the job offer
- Provide details about the position and company to help the candidate to accept the job offer.
If the candidate finds the job offer letter to be acceptable, they will sign and return the letter to the employer. The job offer letter is not legally binding like an employee agreement. This offers legal protection to the employers and the employees before signing the employment agreement. However, the employer can revoke the job offer letter under section 5 of the Indian Contract Act, 1872 before receiving the communication of acceptance.
What is there in an Offer Letter?
A job offer letter provides details about the position being offered and about the company. Job offer letter format cannot be standardised as one format can’t fit every company. The elements of a job offer letter are given below which can give an idea about how to write an offer letter.
Company Logo
A job offer should be made on the official letterhead of the company. It should have a high-resolution image of the company logo. It proves the authenticity of the job offer letter and gets the attention of the selected candidate.
Date and Contact Information
An engaging job offer letter must contain the date and candidate’s name and address in the upper left-hand corner. This encourages the candidate to read the whole letter.
Greeting Line
An employer should always start the offer letter with a greeting like “Dear”. The letter’s first line should congratulate the selected candidate and express enthusiasm. The opening line should have positive vibes.
Job Details
The formal title of the post, the planned start date, the employment status (full- or part-time), the office location, the manager or supervisor, and a brief explanation of the role and its responsibilities should all be included in the letter.
Compensation
The job offer letter should have an explanation of the compensation package being offered by the employer. It should have details like annual/monthly payment, method of payment, equity, bonuses, perks, etc.
Contingencies
Mention in the offer letter that the position is a subject to the candidate completing particular paperwork or tasks. A background check, a drug test, an I-9 form, a signed confidentiality agreement, or reference checks may be the part of these contingencies.
Benefits
The job offer letter should explain the benefits like insurance coverage, leaves, flexible work hours, WFH options, and others.
Closing
End the job offer letter by expressing excitement about welcoming the selected candidate to the team. The employer should also provide contact information, in case needed by the candidate.
Disclaimer
To clarify that the letter is merely informational and not a legally enforceable contract or agreement, think about incorporating a brief disclaimer.
3 Types of Job Offer Letter Examples
A question that always arises in the mind of employers is how to write an offer letter. The types of offer letters depend on the job type. Let’s see the offer letter examples according to the job type.
1. General Job Offer Letter Format
Subject: [Company_name] Job Offer/Job offer from [Company_name]
Dear [Candidate name]
We were all very excited to meet and know you over the past few days. We were impressed with your background and would like to offer you the position of [Job_title].
This is a [full/part] time role [mention working days and schedule.] You will be reporting to the [Manager name].
We will be offering you an annual gross salary of [₹X] and [mention bonus, if applicable.] You will also have [mention benefits as per company policy, like health and insurance plan, mobile expenses] and [X] days of vacation per year.
[optional: I am attaching a detailed compensation letter here.]
Your expected starting date is [date.] You will be asked to sign a contract of [contract duration] and [mention agreements, like confidentiality, non disclosure] at the beginning of your employment.
We will wait for your response by [date.] Please feel free to contact me or [Manager name] via email or phone on [provide contact details], if you have any questions.
We are all looking forward to your joining our team!
Best regards,
[Your name]
[Signature]
2. Formal Job Offer Letter Format
Subject: job offer from [Company name]
Dear [Candidate name]
We are excited to give you this offer of employment for the position of [Job title] with [Company]. Please review the summary of the terms and conditions of our company.
If you accept this offer letter, your start date will be [Date], and you need to report to [Manager name].
If you accept this offer letter, please find attached terms and conditions of your employment. By [date], we would like to receive your response. If you have any questions in the interim, don’t hesitate to get in touch with me or [Manager name] over phone or via email at [give contact information].
We are looking forward to your joining us.
Best regards,
[Your name]
[Signature]
3. Informal Job Offer Letter Format
Dear [First name of candidate]
We are pleased to offer you a job as a [position name] at [company name]. We think you will be a valuable asset to the company.
If you accept this offer letter, you will be eligible for the following:
Annual gross salary of [₹X] paid monthly by direct bank deposits.
Up to [%] of your annual gross salary will be given as a performance bonus
You will get [Number of days] days of leaves per year.
You are entitled to get benefits like [benefits like insurance, bonus, mobile bill, etc]
To accept this offer letter, sign the letter and email it back to us by [date]. Your start date will be [date]. Your reporting manager will be [manager’s name].
We look forward to welcoming you onboard. Please call us at [contact number] if you have any questions.
Sincerely,
[Your name]
[Signature]
Internal Job Offer Letter Format
Subject: Congratulations on your new role!
Dear [Employee’s name],
As already discussed, we are excited to officially promote you as [Senior Manager] on [date].
You’ll find your updated contract attached here. It contains new employment terms along with a new compensation and benefits package. Please review and send back the signed letter by [date]. Please feel free to reach out to me, if you have any questions.
We value your dedication and hard work. We’re all excited to see what fantastic things you accomplish in your new position.
Congratulations!
Best,
[Your name]
[Your email signature]
How to improve job offer acceptance rate
The proportion of applicants that accepted a formal job offer is indicated by an offer acceptance rate.
A job offer acceptance rate lower than 40% indicates that something is wrong with the hiring strategies. On the other hand, a rate of more than 90% indicates that there is a good match between the company and the candidate.
Formula
Offer acceptance rate= No. of offers accepted/No. of offers made *100
Tips to improve:
- Write a better job description explaining the responsibilities, skills, and qualifications needed.
- JD should include Salary information and a description of the location and working conditions.
- Consider comparing your pay to industry or regional benchmarks if candidates are frequently receiving greater offers from other businesses.
- Employers should ask about the tough screening questions upfront.
- Speed up your recruitment process to get the perfect candidates onboard.
- Use pre-employment assessments to save time, avoid bias, and hire better employees.
- Provide a first-rate candidate experience by making it easy to apply, follow-ups and transparency.
- Improve employer branding so that when candidates research about you, they get an excellent impression.
Important information such as the job title, starting date, work schedule, location, pay, benefits, terms and conditions, and supervisor must be included in a decent job offer letter. For various types of work, employers can utilise different offer letter formats. A strong and compelling offer letter encourages the selected candidate to accept it. The job offer letters should be positive and reflect the corporate culture in addition to the specifics. To avoid any misunderstandings, further documents may also be supplied to the selected candidates. The employers should provide responsive contact information, in case candidates want to ask any questions. The acceptance percentage of the employment offers rises with a compelling offer letter.
