Cracking a job interview is exciting. But, do you know what is even more exciting? Holding your offer letter in hand. Employees wait for it like no other document as it confirms their position in an organization. And as soon as they get it via email, they run through the whole letter and check every trivial detail one by one. Since an offer letter is such an important document for employees, it is the responsibility of every company out there to draft it right. From using the correct format to including vital information, there are a lot of things to be taken into consideration while writing an impactful offer letter. But, truth be told, many HR professionals who write these letters are still not there. They are even not clear about the whole offer letter vs appointment letter thing. If you are also one of them, do not worry as you have certainly landed at the right place now.
In this blog, we will tell you what all elements should be included in an offer letter.
Take a look.
Basic Details
An offer letter should always start with a sentence including all the basic details such as the full name of the employee, his/her position, joining date, etc. Now, HR managers should ensure that they do not use phrases that indicate indefinite future employment like “job security” or “in the future”. They not just leave a bad impression on new employees but also build fear in them.
Job-Related Details
HR managers should try to make the offer letter as informative as possible. It should not leave even a slight doubt in an employee’s mind. So, after writing the basic information, HR managers should include every detail related to the person’s job for which s/he has been shortlisted. Write the job title, work hours/days, responsibilities, and most importantly, the salary and pay periods. Including salary details is important because it will avoid any misunderstanding in the future. Besides, the name and details of the reporting supervisor or manager should also be included.
Benefits Details
Not many companies include this detail in their offer letter format. But HR professionals should spell out the applicable benefits including health care insurance, 401(k) plans, life insurance, flexible spending accounts, accidental death and dismemberment coverage, etc. HRs should include the eligibility criteria to acquire these benefits as well.
Vital Employment Terms
Almost every organization in India has a set of terms and conditions that has to be followed by their employee. Now, HR managers should include these terms in the offer letter. This section normally includes factors like successful completion of drug testing and background checks, signing of confidentiality agreements, and much more. Also, make sure that these terms do not have any statements related to job security, promises of future employment or contractual agreements.
At-Will Employment
This is one of the most important elements to be included in an offer letter format. HR managers should write a sentence that the employment relationship is at will. This way, employers will have the right to terminate an employee whenever they want to. At the same time, employees will also be free to resign from their position at any time. Including components such as at-will employment in offer letters can increase its authenticity and make it more professional.
Close
After including all the information mentioned above, HR professionals should close the letter with their contact details. This will help employees to reach out to them in case they have any questions or concerns. Other than contact information, HRs can also add statements expressing their excitement about bringing the employee on board.
Last but not least, concluding with a line stating that the letter is only for informational purposes and is not a binding contract will add more value to it.
So, keep the aforementioned six things in mind while drafting an offer letter. Good luck!
