Hiring a new employee requires you, as an employer, to prepare documents for them to read and sign. These documents contain information for the newly hired employee regarding the position given to them, the specific date when their employment will take effect and the duties and responsibilities that they must perform in their job, which will be further explained in their job description.
Other relevant information that these documents hold is the employee’s initial salary rate, the bonuses that they could be receiving depending on their performance, the frequency of their salary as well as the mode of payment. All these information are not only relevant but can also provide the employee with an initial impression of what the the company can offer to them and what the company expects from them.
Employers do not always consider offer letters to be employment contracts, but these letters are actually very useful because they can be used as an important evidence if your employer makes changes regarding your job responsibilities or your compensation sometime after you take the job. If you are planning on making an offer letter, check out our website for some simple offer letter templates which you can use for your convenience.
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What’s in an Offer Letter?
An offer letter is defined as a short employment agreement that describes the basic terms which a particular position is offered by an employer and accepted by a prospective employee. Employment agreements are often formal documents that define the arrangements of an employment in a much greater detail.
Offer letters generally contain the designation of an employee, including their salary structure, the rules and regulations of the organization, and even more information that the employee and employer needs to agree on.
Offer Letters versus Job Letters versus Joining Letters versus Appointment Letters
- Offer Letter. A document received from a hiring manager offering you to work in their company after you have passed the exams and interview.
- Job Letter. A document sent to the hiring managers asking for a suitable vacancy, if available.
- Joining Letter. A document filled up on the day of joining a company to inform that you have joined the company on that date, time, and location.
- Appointment Letter. A document provided by the company upon your joining the company where all the information regarding your job are stated.
What Is the Purpose of Offer Letters?
The purpose of offer letters is to initiate an employment relationship on a positive note. It informs the candidate that they were chosen for the position due to their skills and qualifications that might be beneficial to the company. Offer letters help to motivate the employee to perform well in the job assigned to them.
In the legal aspect, offer letters also serve as the basis for employment. In cases where issues are met regarding your employment status, you may use the offer letter issued to you by your employer as a legal evidence to back you up.
What Should be Included in an Offer Letter?
Since an offer letter can be used as a legal evidence for an employee, then we really need to be careful on what information we should include. To help you out, here are some things that a basic offer letter should contain:
- Basic Job Information. This commonly includes the position and its duties and responsibilities. The initial position and duties should be defined, and the employer has the right to change an employee’s position, give additional or remove duties in the position.
- Compensation. The starting salary rate should be stated, the frequency and the method of payment, whether it will be done through cheque, direct bank deposit, or cold cash. Bonuses, such as performance bonuses, signing bonuses, and other kinds of bonuses will also be mentioned here. If the bonus structure is complicated, then the employer should set a schedule to talk with the employee personally regarding this matter.
- Benefits. The benefits provided by the company should be briefly described, such as medical, dental, or other types of insurance. These benefits will be further explained by the employer upon the orientation of the new employee.
- Relevant Dates. The deadline of the submission of pending requirements, the duration of the probationary period, the number of working hours per week, the time covered in a daily shift, and the start date and time should be stated.
- Employment Conditions. Offer letters should mention on the contingency of an employment upon satisfactory reference checks, proof of authorization, and other conditions specified by the employer.
- Other Required Documents. If there are other documents that need to be signed by the employee, they should also be attached to the offer letter for both legal and recording purposes.
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What Should Not be Included in an Offer Letter?
- Making false guarantees. Like guaranteeing the employee with a long-term employment. This may cause liability issues in the future.
- Writing the salary rate in a yearly amount. While it is strongly advisable to state the salary rate in a monthly basis, you may also state it in weekly terms.
What Is the Process of Making an Offer?
When you have finally found a suitable candidate, sending an offer letter may not be enough. There is actually a process to follow when making an offer.
Informing the Candidate
Before sending an offer letter, it is best to contact the candidate by phone to inform them of the offer. This allows you to discuss with the candidate the terms of employment and establish whether it is an acceptable offer.
Checking up on candidates is not only a standard operating procedure, but it is also necessary to further verify if they are indeed suitable for the position in your company. You should contact at least two people stated in their resume’s character references to determine if they did actually hold the position in the company for the duration claimed by the candidate. You should also check on the candidate’s medical examination results to check if they are physically healthy and fit to perform the job that will be assigned to them.
Informing Other Candidates
Other than informing the candidate that they have successfully secured the job, you should also notify the other candidates that were not able to get the position to keep them from waiting. While this may be hard to do, it is better than to keep them waiting for something that they won’t have.
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Why Download our Templates?
- Carefully Selected. The templates that we have here are created for particular and specific purposes and functions. This will enable you to use a template that is relevant and related to your current undertaking.
- Professionally Written. These templates were done by knowledgeable professionals for the purpose of helping you out in writing your own offer letter.
- Easily Downloadable. These templates come in the PDF format, which can be easily downloaded for free.
- High Quality. These high resolution templates assure you of clear and legible printouts.
- Fully Editable. These templates are fully editable as long as you have the needed software, which is a licensed Adobe Acrobat or Foxit Reader.