5 Important Elements that an Offer Letter must have

An offer letter is treated much like a play store app, to which we tap on the “Agree and continue” button without a second thought. Why? Because we are impatient to get the app, just like we are to close the job position. But, HR should stay very vigilant while doing paperwork or passing anything to anyone in writing. This is why when it comes to offer letter, even if they are using any offer letter template, they should be careful.

So, here are 5 elements that your offer letter must include. Take a look.

  • Date and time

The letter should have a date and time, especially for the joining. This not only proves the authenticity of the offer letter but also makes the new employee can let you know if he would be released by that day from his current company. If he has some vacation plans or any other thing. Apart from this, you should also mention the date from which the medical insurance or time off accrual will start.

  • Job responsibilities

Before you roll out a job offer letter, you should remember that you should make it crystal clear in the mind of the hired personnel about his responsibilities. Not only will this save you from any misinterpretation or assumptions but also because the employee can leave after joining if he would be having a different picture in his mind.

  • Base salary

You might have discussed salary expectations and completed the negotiation part over call or discussion in person; you should make sure that the same has been edited in the offer letter template you use. This will make it clear in the mind of the hire as to what he would be paid. It is better to stay on a safer side, otherwise, all of this can lead to misunderstandings and disputes. This way you both will be clear on the payment part.

  • Bonus
    If you have promised any variable figure or bonuses to the employee, you should mention it in the offer letter. You can also resort to using HR software as smart as Hrone that can generate offer letter on its own if you want to save your time and are finding it all a bit too much to digest. Nonetheless, mentioning every money related variable and invariable aspect of the salary increases your respect in the eyes of the hire.
  • Benefits
    Every benefit should be mentioned by you in the offer letter. For instance, if you provide sick leaves, parental leaves, anniversary, birthday leaves, time flexibility, free lunches, pick drop facility, you should make sure that each and everything is mentioned so as to attract all the more interest of the prospect you have extended the offer letter to. Moreover, if there is an extra special benefit that you are providing to that hire exclusively, you should mention that as well in bold.

Apart from the aforementioned points, make sure you also include the terms and conditions like a non-solicit clause, non-disclosure or non-compete clause (whatever you have).

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