What is an Offer letter?
An offer letter is a formal letter designed to make an offer towards the selected candidate. HR can make an offer to the candidate on call; however, sending an offer letter through email confirms the position for the Selected candidate. Florian Berg, the owner of the cybersecurity company and the website VPNWelt, also finds this method of making a job offer ineffective. The offer letter allows the candidate to know more about the position, company and other details before joining the post. When the candidate accepts the offer, they sign it and return it to the company. It is good to have written confirmation of a proposal that clarifies the terms and conditions between employers and employees.
What does an offer letter comprise?
An offer letter consists of the crucial details about the role and company that a candidate must consider before accepting the job role. All the details included in the offer letter format are:
Company Address and hiring manager info The job title Date of commencement and work schedule of Job Compensations and benefits, if any Company and employee policies
Format of an Offer Letter:
On a page, start with putting your company logo at the top corner or use an official letterhead of the company to depict that it’s an official document. While the left-hand corner will include the date, candidate name, address in the following format:
DD/MM/YY OR MM/DD/YY Company Name HR manager(Sender) Information Candidate first and last name with a prefix(Ms/Mr, Mrs., etc.) Candidate address City, state and Zip
Offer Letter Format in MS Word
[Offer Letter Date] [Name][Address Line 1][Address Line 2][City], [State], [PIN Code] Dear [Mr./Miss./Mrs./Ms.] [Name], Congratulations! We are pleased to confirm that you have been selected to work for [Company Name]. We are delighted to make you the following job offer. The position we are offering you is that of [Job Title] at a monthly salary of [Salary per month] with an annual cost to company [Annual CTC]. This position reports to [Supervisor Title], [Supervisor Name]. Your working hours will be from [9AM to 6PM], [Starting Week Day] to [Ending Week Day]. Benefits for the position include: (Use if relevant to the position)
Benefit A (Casual Leave of 12 days per annum) Benefit B (Employer State Insurance Corporation ESIC Coverage) Benefit C
We would like you to start work on [Desired starting date] at [Desired starting time]. Please report to [Name of person to report on start date], for documentation and orientation. If this date is not acceptable, please contact me immediately. Please sign the enclosed copy of this letter and return it to me by [Last date for offer acceptance] to indicate your acceptance of this offer. We are confident you will be able to make a significant contribution to the success of our [Company Name] and look forward to working with you. Sincerely, (Name of person authorized to make offer)(Position)(Company)
Introduction para:
Job Details: In the next step, briefly describe the role you are offering with the specific details about the Job. All this includes the Formal title of the position, Salary, Anticipated date of starting the work, Full time/part-time status, Remote/Office location and About the role and responsibilities. Benefits: An employer can attract the selected employee by listing the benefits or bonuses they can receive by working in your company. Be specific, let the employee know that company can expand it during their onboard process. For example, insurance policies, 401k options, etc. At will statement: It is written to prevent getting bind up by any contractual obligation. It allows the company or employee to terminate the employment at any time due to some reasons. Expiration Date: Before finishing the offer letter, decide if you want to write an expiry date or not. The expiry date of an offer letter will put a deadline on receiving a response. This will create a sense of urgency and saves time for HR as well. If the candidate does not sign the letter within the given date, another employee can be found. Closing Line: End the offer letter by expressing excitement about welcoming the employee to the team. Use an inspiring line to receive them, such as ‘We look forward to working with you’. Also, don’t forget to mention your contact details just in case they have any questions. In the end, in the right-hand corner, leave space for the candidate to sign and note the date of accepting the offer in the left corner, including the company’s name, the HR manager (Sender) and the signature. Recommended
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