If you’ve found the perfect potential employee for an open position at your company, the next step is to send them a job offer of employment for the new job. While the job offer letter is often just one formal step in hiring, it’s an important one. Learn how to put together an excellent job offer letter for a variety of situations.
What is a Job Offer Letter?
It may be common to let an applicant know of their hiring verbally, either in person or on the phone. Regardless of how you inform them, it’s smart to follow up with a formal paper letter or job offer email sent to them with the details of the offer of employment. This helps establish a professional rapport early on and built a positive employment relationship. It also limits any possibilities of them misunderstanding the terms of the offer. It’s recommended from a legal standpoint, too, because it serves as documentation of the employment terms.
What is Included in a Job Offer Letter?
The letter format you use may vary by position type, but each should include these essentials:
- The formal job title and description for the hired position
- The start date
- The hours or schedule for the position
- Who their boss or managers will be
- Pay for the position, such as hourly wages, starting salary, or bonus structures.
- If the new employee is salaried, the salary structure. For example, is the structure a base salary with bonuses? Or is it one annual salary?
- Other payment information, such as your pay period and potential stock options.
- Employee benefits packages, including PTO, flex time, health insurance, and other perks
- Privacy, non-disclosure, and non-compete policies
- Your company’s employee handbook
- Conditions of the employment relationship, including potential drug tests, background checks, termination conditions, union agreements, and reference to any right-to-work hiring terms
Job Offer Letter Template
Since so much information is packed into an employment offer letter, it may be helpful to use a template. Customize this job offer letter sample to meet your needs. And keep in mind — this can be an email template or a written letter template.
General Job Offer Template
Email subject line: (Company name) Job Offer
Dear (Name),
We are impressed with your skills and experience and are pleased to offer you the (position name) role at (Company name). This (full-time/part-time) position reports to (manager name) in (department) during (days and hours) each week.
Compensation for this position is ($X) per (hour/month/year) and includes (benefits details).
Please note our employment and termination policies. (Details of at-will employment, if applicable.)
We look forward to your start date of (month/day), where we will go over your contract details, including (non-disclosure/non-compete/confidentiality). Confirmation of your acceptance of this offer would be appreciated by (month/day) and can be sent to this email address. Please let (contact name) know of any questions you have in the meantime.
We are excited to have you on the team!
(Hiring manager/HR rep name and contact details)
Formal Job Offer Template
The formal job offer is similar to the one above. You may include additional information, such as a description of the job, compensation package details, and additional contract terms as an attachment to the email. You may also choose to send this by postal mail.
Email subject line: (Company name) Job Offer
Dear (Name),
We are impressed with your skills and experience and are pleased to offer you the (position name) role at (Company name). This (full-time/part-time) roll will (2-3 sentences outlining job description). You will report to (manager name) in (department) during (days and hours) each week.
Compensation for this position is ($X) per (hour/month/year) and includes (benefits details).
Please note our employment and termination policies. (Details of at-will employment, if applicable.)
You will find your offer letter outlining your compensation, benefits, and contract terms attached. Please review and pass along any questions you may have.
We look forward to your start date of (month/day), where we will go over your contract details, including (non-disclosure/non-compete/confidentiality). Confirmation of your acceptance of this offer would be appreciated by (month/day) and can be sent to this email address. Please let (contact name) know of any questions you have in the meantime.
We are excited to have you on the team!
(Hiring manager/HR rep name and contact details)
Informal Job Offer Template
An informal job offer may be shorter. It typically excludes some of the details of the formal letter and rarely includes attachments.
Email subject line: (Company name) Job Offer
Dear (Name),
We are excited to welcome you to the team! We are impressed with your skills and experience and are pleased to offer you the (position name) role at (Company name). Here are the details:
- (full-time or part-time) position reporting to (manager name) in (department) during (days and hours) each week
- Compensation for this position is ($X) per (hour/month/year)
- Benefits include (benefits details)
- Start date of (month/day)
- Please note our employment and termination policies. (Details of at-will employment, if applicable.)
We can go over your contract details on your start day, including (non-disclosure/non-compete/confidentiality).
Can you please confirm your acceptance by (month/day)? You can send it to this email address. Please let (contact name) know of any questions you have in the meantime.
(Hiring manager/HR rep name and contact details)
Part-Time to Full-Time Job Offer Template
If you are transitioning a part-time employee to full-time status, you won’t have to include many of the details of the original job offer. Simply include what will change, such as hours and pay, because you’ll have many of the contract terms already signed and on file.
Email subject line: (Company name) Job Offer
Dear (Name),
We are pleased to offer you the full-time (position name) role at (Company name), reporting to (manager name).
Compensation for this position is ($X) per (hour/month/year) and includes (benefits details).
We look forward to your start date of (month/day). Confirmation of your acceptance of this offer would be appreciated by (month/day) and can be sent to this email address. Please let (contact name) know of any questions you have in the meantime.
We are excited to have you on the team!
(Hiring manager/HR rep name and contact details)
Internal Job Offer Template
Similar to the part-time to full-time template, you won’t have to explain some of the benefits or conditions of employment. Include what’s unique about this new offer, such as pay, expectations, and job description.
Email subject line: (Company name) Job Offer
Dear (Name),
We are pleased to offer you the full-time (position name) role at (Company name), reporting to (manager name).
Compensation for this position is ($X) per (hour/month/year) and includes (benefits details). Your role’s responsibilities now include (job description’s primary responsibilities).
Confirmation of your acceptance of this offer would be appreciated by (month/day) and can be sent to this email address. Please let (contact name) know of any questions you have in the meantime.
We are excited to have you on the team!
(Hiring manager/HR rep name and contact details)
Accepting a Job Offer
If offered a job in person, a candidate may not accept right away. This is totally fine and it’s why a formal job offer letter is useful. They now have some time to decide and let you know of their decision by phone or email. Their response may include a request for higher pay or added benefits. Be prepared for the new employee to use the letter as a starting point for a negotiation.
Declining a Job Offer
What happens if the candidate refuses the offer? Unfortunately, it happens. Some factors they may weigh when considering a position include whether the salary is competitive, whether they have room for advancement, if the culture matches their own values, and whether they have received a more attractive offer.
Be sure to give the candidate time to decide, but let them know that you’d like an answer within a reasonable timeframe. If they decide not to accept, a formal reply with a note of appreciation for the offer is appropriate.
How to Measure and Improve Your Job Offer Acceptance Rate
Given that a lot of time, energy, and money has gone into getting to the point of making a hiring offer, it’s only natural to expect a “yes” from the candidate. But this isn’t always the case, and lower acceptance rates can be a sign of flaws in your hiring process, interview process, and/or candidate experience.
To measure your acceptance rate and track it over time, use this formula:
Take the number of job offers accepted and divide them by the number of job offers given
This percentage is your offer acceptance rate. Only you can decide if your rate is suitable, but you can always work toward improving that number through the following:
- Compare your compensation and benefits packages to other companies in your industry. Are they competitive? If not, see what you can do to increase your offerings. Even a slight adjustment can improve your acceptance rate.
- What is your company’s reputation? Part of your branding and culture depend on how outside hires see you. Do they feel like you are a safe place to work with fair wages and opportunities for growth? If not, this could be an opportunity to work on public perception and increase your job acceptance rate.
- Time to hire is another crucial element. If it’s taking too long from the time an applicant applies to the time you hire, they could lose interest. Worse yet, they could have taken a timelier job offer. Work on how you can shorten your time to hire speed so you don’t lose valuable talent. An applicant tracking system can be beneficial in this goal.
Despite your best efforts, you could also lose out on candidates due to a poor fit. Make sure your job recruitment efforts are targeted at the positions you want filled. Better matches are sure to follow if you make improvements.
Do you need help with your hiring process? At Comeet, we specialize in providing a better way for recruiters and hiring managers to find the talent they need. Learn more about our “better way” principles and get a demo today.
