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How to write a good offer letter?

Hiring high-quality employees is important to your business's success. When recruiting, it is best to have clear, comprehensive offer letters for all employees. Many offer letters can be as brief as two pages long, including concise summaries of all major clauses. With a few simple short-form agreement forms, you can cover almost all of your employees (exempt, non-exempt, full-time, and part-time). 

For executive hiring or more sophisticated or unique arrangements, these offer letter pattern agreements can be customized to incorporate features such as relocation benefit packages, bonus and commission programs, severance, change of control perks, and tax minimization clauses.

What is an Offer Letter?

An offer letter is a document issued to candidates once they have been selected for the position. The letter clearly states the wage package, designation, department, and other advantages to which he will be entitled if he joins the organization. Other requirements include a statement of at-will employment, a list of eventualities, and a confidentiality agreement. A signed offer letter does not obligate you to join the firm thereafter. However, this may be achievable in rare cases.

Why is an Offer Letter so Important?

According to a Robert Half survey, 80% of candidates believe the offer letter plays a vital role in their opinion of an employer. This emphasizes the value of a professional and well-written offer letter. Sending a job offer letter to your favored applicant is beneficial since having the specifics in writing may assist the individual in considering their alternatives and deciding whether or not to take the employment. The earlier you receive their choice, the sooner you may begin the onboarding process or move on to the next applicant if the person refuses your offer.

A job offer letter also guarantees that your company and the potential new hire are on the same page about the position's specifics. Less uncertainty means less back-and-forth between you and the candidate while the offer is being considered, as well as fewer future difficulties.

Tips for Making a Job Offer to Candidates

Making a job offer to a candidate is straightforward at first glance: you write the offer letter, ask management for approval, and send it to the applicants. However, each of these stages needs time, work, and a high degree of coordination and care. Glassdoor's research suggests a link between a great onboarding experience and employee retention. A concise and professional offer letter sets the tone for a seamless onboarding process, which may lead to increased engagement from new employees.

Here are a few recommendations to help you maximize your job offer process:

  • Cover crucial job specifics before you begin hiring

  • Make a job offer on the phone first

  • Use effective offer letter templates

  • Using recruitment software, you may speed up the job offer approval process

What should an offer letter include?

Before you begin the onboarding process, make sure you completely grasp how to create an offer letter that will position them for success. The following are conventional things to include in the offer letter pattern, although your organization may choose to include more information as needed.

Each offer letter should include the following crucial terms:

  • Position/Title.

  • Name and position of the supervisor.

  • Full-time/part-time schedule. Indicate whether the role is full-time or part-time, and explain the general work schedule.


Avoid including all obligations or work regulations in the offer letter. If you wish to refer to specific duties, make it clear that they are not a comprehensive and exclusive list and are subject to change.

Equity (if applicable) 

Briefly outline the details of any equity awards (e.g., number of shares, vesting schedule).  However, be careful to mention that the employee's grant agreement and your equity plan's terms and conditions apply to the award. The company's authority to create performance criteria should be clear if performance-based vesting is employed,


Provide a brief description of any bonus (e.g., goal amount, criteria, payment conditions) or commissions. If you have a formal bonus or commission plan (as is frequently advised), you may simply refer to it. The offer letter should state clearly which types of incentive pay will be assessed and provided at the company's exclusive discretion.

Base salary

Nonexempt employees should be paid hourly, whereas exempt personnel should be paid monthly or in typical pay periods (for example, $2,000 every bi-weekly pay period). The offer letter may also include the annualized wage rate. Many firms will desire to offer letters that say that remuneration may be amended at any moment at the discretion of the employer. Be mindful of the minimum wage regulations.


Briefly outline the kind of benefits for which the employee will be qualified (for example, medical insurance, vacation, sick leave, and holidays), or mention that the individual will be eligible for typical business benefits accessible to similarly situated workers.  The offer letter should advise the employee that benefits plan details are available for inspection and that the firm reserves the right to adjust benefits from time to time. According to research by The Muse, incorporating specifics such as perks and start dates in the offer letter might increase acceptance rates.


Indicate that employment will be subject to the company's policies, procedures, and handbook (if applicable), as adopted, updated, or deleted from time to time.

At-will employment

If the job is at will (as is usually suggested), the offer letter should state that either the employee or the firm may terminate the relationship at any time, with or without cause or prior notice. Avoid language that implies a definite length of work, or even "soft statements" like "looking forward to a long relationship."

Confidentiality and invention assignment agreements

All employees should be compelled to sign a confidentiality and invention assignment agreement, along with an offer letter as a condition of employment.

Prior employer's confidential information/restrictions 

Offer letter description should not include unlawful use of past employers' or any third-party sensitive information, and disclose any employment limitations (for example, non-competition or non-solicitation agreements with former employers).

Common Mistakes to Avoid in an Offer Letter

  • Using a simple template may make your offer letter appear impersonal and unprofessional. Avoid using a stock template in your offer letter.

  • Overpromising: When making promises in a letter, use caution because doing so may build expectations beyond reality and ultimately disappoint readers.

  • Not revealing important information: Include any essential information, such as the position's responsibilities, salary, benefits, and start date. According to LinkedIn LinkedIn research, 40% of job seekers reject accepted job offers. A well-written offer letter that outlines the corporate culture, benefits, and possibilities for advancement can assist in mitigating this by setting clear expectations and encouraging excitement about the work.

  • Not being explicit about the conditions. Make careful to explicitly state any restrictions in the letter that must be met before the offer may be accepted.

  • Not proofreading: Before delivering the offer letter, review it for grammatical and typographical errors.  

What is the offer acceptance rate?

The offer acceptance rate is the percentage of candidates who accepted a formal employment offer.

Job offer acceptance is an effective recruitment metric. A low rate (<40%) indicates potential issues with your talent acquisition strategy. A high acceptance rate, on the other hand (>90%), might suggest that your company's requirements and the expectations of the selected applicants are a good fit. A high offer-to-acceptance ratio is typically the consequence of effective communication, reasonable and competitive offers, and a positive applicant experience.

As a result, it is critical to deliver a strong employment offer while also receiving an acceptance letter. Our detailed essay will teach you more about acceptance rates and how to enhance them.

How to write an Offer Letter?

Your letter may differ depending on the nature of the position, your style, and the amount of formality you like. The template below will provide you with the essentials of the offer letter pattern.

[Company Logo]


Full name and address of the candidate.

Dear [Name of Candidate],

We are delighted to offer you the position of [title] at [company name].

We believe you are a great candidate for the [full or part-time] [title] position. In this capacity, you will be expected to execute [duties and responsibilities]. You will start on [start date] and report directly to [supervisor's name] at [workplace address].

You will be required to work between [work hours and days of the week].

Your initial base income is [amount] and will be paid on a [monthly, weekly, etc.] basis via [check, bank deposit, etc.]. In addition, we provide advantages like [insurance, paid time off, etc.].The benefits package will be addressed in further detail throughout the onboarding process.

Your employment with [business name] will be on an at-will basis. It suggests that you and your employer can terminate your employment for any reason and at any time.

Please sign and return this letter by [expiration date] if you accept his job offer.

Kindly contact me at [phone number and email address] if you have any questions. We are delighted to welcome you to our team and look forward to working with you.


Your signature 

Your full name and title 

Signature line for employee 

How to Respond to Offer Letter Mail?

Receiving a job offer letter is exciting because it indicates that an employer has picked you as a qualified candidate for the position. Regardless of whether you accept, reject, or negotiate the offer, you must properly respond to the employment offer letter. Here are some suggestions for replying to a job offer letter, including templates for accepting, rejecting, and counteroffering.

Read the letter: Carefully: Read the job offer letter carefully to ensure you understand all of the position's terms and conditions. If you are unsure about something, do not hesitate to ask for clarification.

Be Prompt: Responding to the job offer letter as soon as possible demonstrates professionalism and respect for the organization's time.

Express gratitude: Thank the organization for considering you for the role.

Be Polite: Respond nicely and professionally to the job offer letter, whether you accept or refuse it.

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