You’ve Extended a Verbal Offer… What’s Next?

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An offer letter (written correctly) is your next step! An offer letter helps identify pay, position, exemption status, start date, benefits and other special circumstances or compensation arrangements. An offer letter confirms interest and acceptance of the position and can be very helpful when trying to recall special work arrangements.  

Employers should have a generic offer letter that can be used for any position being filled by the Company. The standard form should be in an easy format allowing for easy insertion of the applicable information. If you don’t have a generic offer letter, contact HR On-Call, LLC for help! Executive level positions, should be outlined with even more specific details including individual compensation arrangements and/or benefits in the offer letter.

Make sure your offer letter has these components:

  • Avoid Contractual Language Don’t make promises. The work conditions should never include statements about job security, promises of future employment or contractual agreements.
  • Employment at Will Clearly state in the letter that they are being hired with an “at will” status.
  • Summarize Compensation and Pay Procedures Fair Labor Standards Act (FLSA) exemption status, start date, full- or part-time status and rates of pay should be clearly defined. Include details on the title and pay periods. Employee compensation should be stated in an hourly, a weekly or a per-pay-period salary amount to avoid the expectation of receiving the full annual salary if the employee is terminated midyear. An annualized equivalent may be mentioned, but only after pay is clearly stated in one of these increments.  Include the supervisor or manager to whom the employee will report, as well as the performance review process, if applicable.
  • Describe Benefit Eligibility Offer letters should reference benefit eligibility and costs for healthcare. Other benefits such as Savings & Retirement Plans should also be referenced. Special arrangements such as car allowance, bonus opportunities, cell phones, flexible work schedules….etc. should be documented.
  • Paid Leave Information Include the amount of PTO/vacation and holiday time allowed. A general reference to policies in the Employee Handbook can be sufficient.
  • Closing The offer letter should close with information regarding a point of contact for questions or concerns. An employer can include sentiments that express the organization’s excitement in bringing the employee on board. The letter may also contain a few words about the company culture and/or company values.

In the closing, have a signature line where the candidate can sign, accept and date. It is vital to have a disclaimer on the bottom of the letter stating that this is a confirmation of an offer of employment and is not an implied contract. If you would like help customizing an offer letter for your organization that you can use over and over, please contact Susan Arnold at 515-401-2233.

 

Susan Arnold
HR On-Call, LLC
p. 515.401.2233
e. Susan@HROn-Call.com

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A little more about us:
Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Susan helps business owners improve employer/employee relationships and allows them to focus on their business while resting assured that they are in full compliance with state and federal law.

Areas of expertise:

  • Reduce Employer Risk and Liability
  • Customized Employee Handbooks
  • Performance Reviews
  • Improve Employee/Employer Relationships
  • Background Checks
  • Personality Assessments
  • Guaranteed EEO Compliance
  • Employee Retention
  • Recruitment / Hiring
  • Employee Discipline/Discharge

Susan is passionate about her customers and listens to their needs. If you are interested in any of the details above or would like more information about her services, please contact Susan!

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