The offer letter is one final communication with a prospect before they sign to become an employee. Everything that leads up to this offer matters a little more than the letter itself, but you don’t want to get your offer letter wrong. If you get it wrong, it could undo all your work throughout the hiring process.
If something doesn’t look right, potential employees may have second thoughts about leaving their jobs or picking your offer over someone else’s offer.
Discussing the terms of an offer letter before making a formal job offer can be important for several reasons:
- Clarity and Expectations:
- It ensures clarity on both sides regarding the terms of employment, including salary, benefits, working hours, and other relevant details. It helps manage expectations and reduces the likelihood of misunderstandings or disagreements later in the process.
- Efficiency:
- Discussing key terms early in the hiring process can help avoid investing time and resources in candidates who may have unrealistic expectations or requirements that are misaligned with the company’s offerings.
- Negotiation:
- It allows for negotiation before a formal offer is extended. This can be beneficial for both parties, as it provides an opportunity to find mutually agreeable terms and can contribute to a positive start to the employment relationship.
- Transparency:
- Open communication about the terms of the offer demonstrates transparency and fairness in the hiring process. It fosters a positive employer-candidate relationship based on trust and openness.
- Time Management:
- Discussing offer details early can save time for both the employer and the candidate. If there are major discrepancies in expectations, it allows for early resolution or the possibility of moving on to other potential candidates without wasting additional time.
- Legal Considerations:
- In some jurisdictions, there may be legal or regulatory requirements related to the content of job offers. Discussing key terms beforehand ensures that both parties are aware of and in compliance with applicable laws and regulations.
- Enhanced Candidate Experience:
- Providing information about the offer early in the process contributes to a positive candidate experience. Candidates appreciate transparency and clear communication, and it can impact their perception of the employer and the overall recruitment process.
- Risk Mitigation:
- Discussing key terms in advance can help identify any potential issues or deal-breakers early on, reducing the risk of a candidate declining an offer after the formal offer has been extended.
While it’s common to discuss certain aspects of the offer before making a formal offer, it’s important to strike a balance and ensure that the discussions are handled professionally and with sensitivity to the candidate’s expectations and concerns.
A strong foundation for your offer letter is the best place to start. All offer letters should have some of the same components, including:
- Branding that gives the offer letter weight and value.
- A standard letter format, including the date, company name, contact information, and more.
- An opening statement where you concisely mention the offer, position title, and company name.
- A brief description of the job where you include the expected hour, work location, start date, and a copy of the shortened job description from the job posting.
- All salary and benefits information they need to decide, mainly if the salary was never discussed and you had a range on the job description.
- At-will statement to announce that the company may terminate employment for any lawful reason – this is standard practice and will not scare away potential employees.
- A final closing section where you give contact information for anyone who can answer questions, including the HR department and that employee’s direct supervisor.