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The Recruitment Cycle: Part 7 – Phase II – Approval to Hire and Offer Extension

5 mins read

This article offers information on The Approval to Hire and Offer Extension in the recruitment process.

Having an Approval to Hire (ATH) phase is considered a benefit because the ATH form captures all information pertaining to the candidate, the total rewards, and the justification for how the compensation was determined for future reference.

During this phase, the HM, HR, and President will review and approve the ATH form before the offer of employment is completed and extended to the candidate. This form is also used by payroll as a reference to ensure the candidate is compensated accordingly.

Approval to Hire (ATH)

Tip: It is important to ensure that the proposed total rewards are equal to or better than the candidate’s expectations or industry standards to reduce the risk of the negotiations.

Step 1: Complete the ATH Form that was started in Phase I

Step 2: Meet with the appropriate delegates to get approval on the proposed total rewards

Step 3A: If the ATH Form was not approved, HR will return to Step 1 of this phase to make any revisions as required and agreed upon during the meeting

Step 3B: If the ATH Form was approved, Proceed to the Offer Extension Phase

Once the ATH phase has been completed, HR will prepare the employee offer letter which will be extended to the candidate. When preparing the offer of employment, HR will be using the information submitted on the ATH Form to complete the required information, this is to then be communicated to the candidate who is expected to fill the vacant role.

Each employee classification should have their own offer of employment template readily available to assure there is consistency with each new hire. Once the offer is prepared and approved by the appropriate delegate, HR will extend the offer of employment.

Once the candidate has accepted the offer, HR will inform the appropriate parties of the new hire and their start date. This is to ensure their workspace and other business requirements are ready for their first day of work.

Note: If the candidate does not accept the offer, the company will enter in a negotiating process with the candidate or will cease this current process and return back to the Sourcing and Selection Phase.

Offer Extension

Step 1: Prepare the Offer of Employment

Using the information captured on the approved ATH Form and translating the information on the appropriate [LINK1] Offer of Employment template

Step 2: Approve Offer of Employment

Get approval from the appropriate signing authority delegate

Step 3: Extend the Offer of Employment to the candidate

Step 4A: If the candidate did not accept the offer, return to Step 1 of ATH phase with the counteroffer and begin negotiations

Note: The negotiating process can be extensive, in some cases the company will not compromise, which will end the current process.

Step 4B: If the candidate accepts the offer, Proceed to the Onboarding Phase

This brings us to the conclusion of the last sub-phases of the Sourcing and Selection process. The ATH phase is when the candidate’s proposed total rewards is approved. When the ATH form is approved, the information captured here will be translated to the prospective employee’s offer of employment which is then extended to them verbally first and sent via email for them to accept.

To learn more about the Recruitment Process join us for Part 8 where we will be discussing, “Phase III – Onboarding”

Download this resource article Recruitment Process – Part 7 – ATH and Offer Extension (pdf).

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Visit our Resource Library for all available downloads.

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

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