Salary is just one essential element of an offer letter. Read on to learn how to set expectations and minimize future legal risk through an effective offer letter!

Ann Clifford

Dos and Don'ts
Can offer letters be extended contingent on reference and background checks?

See answer provided below.

Offer Letter as a Marketing Tool
It is easy to skip over formal offer letters in favor of simple verbal agreements. However, an offer letter can be more than a formality. It is as an opportunity to sell the position as a whole, not just the compensation package.

The offer letter can be a tool used to remind the candidate why they chose to accept the job. Consider including a statement about increased responsibility, room for advancement, or whatever is motivating the candidate to make a job change.

Make a statement reinforcing your interest in the candidate. Mention the candidate's specific skills that your company is excited to add to your team. Create a sense of loyalty and appreciation by expressing how they will contribute to the company and how the company will benefit them.

(By Allison Witmeier, Safari Solutions, HR Consultant)

5 Essential Elements of an Offer Letter
An offer letter puts in writing the terms of the employment relationship so the new employee has a clear understanding of expectations. Offer letters should be customized to fit the specific position and the candidate. Be careful not to pledge anything that is not definite. And, to minimize miscommunications, select one person in your company to extend all offers.

Include:

Title of position and date of effective hire.

Salary, benefits, and perks.

Length of qualifying period before the employee is entitled to benefits.

Details on how to accept or decline the offer.

If your company resides in an "at will" state, clearing express that employment is "at will" and the employee can be terminated at any time for any reason.

Safari Interview Tip
Before you extend an offer ask the candidate, "What don't you know that you would need to know before you could accept an offer?" This question may uncover concerns that need to be addressed.

Safari Success Story
Safari Solutions assisted Lor Corp in two recent hires! Safari Solutions' streamlined process and diligent efforts enabled offers to be extended in just two weeks!

Did You Know
According to a Hewitt survey, 78% of companies offer opportunities for personal and professional growth such as education reimbursement.