What is an offer letter?

After extending an initial verbal offer to your top candidate, you may send an offer letter. Typically sent before contingencies like a background check, but before signing an official employment contract, an offer letter:

• Offers a position to a job applicant
• Summarizes the main terms and conditions of the offer
• Provides details about the role and company to help a candidate decide whether or not to accept the offer

If the candidate accepts your offer, they’ll sign the letter and return it to you. An offer letter is typically informational and not a legally binding employment agreement.

“It’s important to get a written offer letter out to the candidate as soon as possible following a verbal offer. This is especially important for candidates who may already have another competing offer and they are trying to make a decision.”

—Kathy Gusich, executive recruiter

What is included in an offer letter?

An offer letter provides a brief overview of the position and company. It often includes specific job details, the job title and/or level, compensation, target start date, work schedule and benefits.

Since there isn’t a standard format for a job offer letter, you can reorder the elements described in the following example to fit your company and the roles you’re hiring for:

Company logo

Use your company’s official letterhead with a high-resolution image of your company logo to convey professionalism and authenticity. This can encourage a potential employee to keep reading and seriously consider your offer.

Date and contact information

In the upper left-hand corner, include the date, the candidate’s first and last name and their address:

MM/DD/YYYY

Candidate First and Last Name

Candidate Address

City, State, Zip code

Greeting/opening line

Start your offer letter with “Dear,” followed by the candidate’s first and last name. Congratulate them and express enthusiasm about offering them the job with a positive opening line, like:

“We are excited to offer you a position at [Company Name]!”

You can make your opening line as formal or casual as you like depending on your company culture.

Job details

Begin your letter with specifics about the position and work logistics. This might include the formal title of the position, anticipated start date, employment classification (full- or part-time), office location, manager/supervisor and a brief description of the role and its responsibilities.

Providing these details provides the candidate with an overview of what to expect and helps clarify anything that may have been misunderstood or overlooked during the interview process.

Contingencies

If the job offer is contingent upon the candidate completing specific documents or performing certain tasks, mention this in the offer letter. These contingencies might include an I-9 form, a signed confidentiality agreement or reference checks.

Compensation

Clearly explain the compensation package you’re offering. Include specific details about the candidate’s annual or hourly rate, how often they will get paid and available payment methods. You can also cover equity, bonuses, commission structures and other relevant details applicable to the role.

If you are offering a signing bonus, consider including a clawback clause, which may require the new hire to pay back a portion of the signing bonus if they leave within their first year of employment.

At-will status

Consider including an at-will statement. At-will statements typically mean that both the company and its employees may terminate employment at any time for any reason.

Benefits

To encourage a candidate to accept your job offer, briefly summarize the key benefits your company offers. Avoid including too many details, as this is better suited for an orientation package or employee handbook. In the letter of offer, you might briefly mention attractive benefits, such as:

• Insurance coverage
• 401(k)plan
• Paid time off
• Flexible spending accounts
• Educational assistance
• Flexible work hours
• Work from home options

Expiration date

When concluding your letter, decide whether to include an expiration date on your offer. A hard deadline can prevent you from losing other qualified candidates if the prospective employee decides to decline your offer. If you choose to include a deadline, consider giving the candidate at least one week to make an informed decision.

Closing

Conclude your offer letter by expressing excitement about welcoming the candidate to the team. Provide contact information in case they have questions and include a line for the candidate to sign and date the offer if they choose to accept.

Disclaimer

Consider including a brief disclaimer to explain that the letter is informational and not a legally binding contract or agreement.

Job offer letter template

Here is a template for you to consider:

[Company Logo]

MM/DD/YYYY

Candidate First and Last Name

Candidate Address, City, State, Zip code

Dear [Candidate Name],

We are pleased to offer you the [full-time, part-time, etc.] position of [job title] at [company name] with a start date of [start date], contingent upon [background check, I-9 form, etc.]. You will be reporting directly to [manager/supervisor name] at [workplace location]. We believe your skills and experience are an excellent match for our company.

In this role, you will be required to [briefly mention relevant job duties and responsibilities].

The annual starting salary for this position is [dollar amount] to be paid on a [monthly, semi-monthly, weekly, etc.] basis by [direct deposit, check, etc.], starting on [first pay period]. In addition to this starting salary, we’re offering you [discuss stock options, bonuses, commission structures, etc., if applicable].

Your employment with [Company Name] will be on an at-will basis, which means you and the company are free to terminate the employment relationship at any time for any reason. This letter is not a contract or guarantee of employment for a definitive period of time.

As an employee of [Company Name], you are also eligible for our benefits program, which includes [medical insurance, 401(k), vacation time, etc.] and other benefits, that will be described in more detail in the [employee handbook, orientation package, etc.].

Please confirm your acceptance of this offer by signing and returning this letter by [offer expiration date].

We are excited to have you join our team! If you have any questions, please feel free to reach out at any time.

Sincerely,

[Your Signature]

[Your Printed Name]

[Your Job Title]

Signature: ______________________________

Printed Name: ___________________________

Date: __________________________________

The model shown is for illustration purposes only and may require additional formatting to meet accepted standards.

By delivering a professional, warm and clear offer, complete with role details, compensation, benefits and a reasonable deadline, you show respect for the candidate’s decision while keeping your company’s interests in mind.

*Indeed provides these examples as a courtesy to users of this site. Please note that we are not your HR or legal adviser and none of these documents reflect current labor or employment regulations.