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5 Things to Include in Every Offer Letter

Posted on Feb 21st 2019

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5 Things to Include in Every Offer Letter

First things first: if you're not currently using formal offer letters, start now.

A signed agreement of employment between a business and an employee protects both parties from unnecessary issues - both human and legal.

Here are 5 things to include in each and every letter you send out.

Title, Job Function, and Start Date

Make sure there's no confusion about the role you're expecting your new hire to play when they accept your offer. This is the place to clearly articulate core responsibilities that will be used to measure performance.

Name, Role, and Title of Their Direct Superior

This serves both the new hire and their manager, boss, or superior, reducing the risk of role, decision-making, and power struggles on the job.

Salary and Compensation

Specify the annual salary or hourly rate they are agreeing to work for, as well as any other compensation they have the ability to earn. When additional compensation is based on specific goals, metrics, timelines, tenure, or overall business growth, be clear about those requirements in your letter. This is the time to show your new employee their full earning potential, and to demonstrate your support in helping them get there.

Be sure to include any PTO, health care, retirement, and stock benefit information, as well.

Work Arrangements

Not clearly identifying where you stand on remote, off-site, or flexible hours in your offer letter can create tension down the road. If your new employee is expected to be on-site each day, arriving and departing at certain times, make that clear. If the new hire is able to work from home for full or partial time, put it on paper.

Enthusiasm

Offer letters that lack employer excitement can turn an otherwise successful relationship into one a potential employee starts to question. Make it known that they are welcome, supported, and trusted to take on the responsibilities of the role.