Offer of Employment: Part 6 – Extending an Offer of Employment

5 mins read

This article is written to provide the reader with details around extending an offer of employment.

Now that you understand what is generally captured in an offer letter for each employee classification type, developed the required template for your business, and generated an offer letter pertaining to the position with the details outlining what the total rewards package includes, it is time to extend the offer!

Once the offer letter is completed, it would be best practice to extend it to the candidate quickly to stay on track with the company’s workforce staffing plan, or in cases where the candidate might have competing offers to consider.

Typically, before any documents are sent out, the recruiter will verbally extend the offer either in person, over the phone, or via video conferencing, so the candidate is aware of what to expect when they receive the offer letter and its attachments.

When it comes to the initial verbal extension, it is best to follow the sequence of the written offer letter. This ensures you are not jumping around and possibly forgetting to mention pertinent details relating to the position’s total rewards package. It would be best to take your time when verbally extending the offer by providing the candidate an executive summary on how the company administers the various components that are identified in the offer letter.

For example, say an employee is eligible to receive an Annual Bonus, you would explain “your position is eligible to participate in the company’s Annual Bonus Plan which is paid out on March 31st annually. Your bonus target is 10%, which is calculated on your overall performance score and annualized salary. So, for instance, say you received a 95% on your performance review, you would receive 9.5% of your annualized base salary.”

Once this verbal offer extension has been completed, the recruiter will provide the candidate with the offer letter, accompanied by any policies as defined in the offer letter (i.e. Employee Handbook, Employee Agreement, or Code of Business Conduct) to review and sign; the candidate will return the documents to the recruiter on or before the specified deadline as stated in their offer letter.

We will discuss these policies in another article, however, to put it simply, these documents provide a comprehensive summary of important company guidelines and other government regulated employment policies which may affect someone’s employment with the company that they will need to acknowledge.

This document should be included in the offer letter package as the candidate is not only signing and agreeing to the offer letter’s terms and conditions, but also agreeing to comply with other company guidelines and/or government employment-related policies relating to their employment with the company.

It’s important to remember that an offer of employment (offer letter) is a legal contract between an employee and the company which outlines the terms and conditions directly related to the new hire’s employment and position. This is why it is crucial that the offer letter and attached agreement(s) are signed and agreed to before they start onboarding with the company.

This concludes our 6 part series on Offers of Employment, which provided you with an understanding of why offer letters are important and gave explanations for the different employment classifications and what their templates may include.

Download this resource Offer of Employment Part 6 – Extending an Offer of Employment.

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If you require assistance with any of the guides, forms or templates, please contact a BIG representative.

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