Offer Letter
A formal written communication from an employer to a candidate outlining the terms of employment, including role, salary, start date, and conditions.
An offer letter is the document that formally extends a job offer to a selected candidate. It typically includes the job title, start date, salary and benefits, reporting structure, any conditions of the offer (such as a background check or reference clearance), and the deadline for accepting the offer.
An offer letter is distinct from an employment contract: the letter initiates the offer, while the employment contract is the detailed legal agreement that governs the employment relationship. Some jurisdictions require employment contracts to be signed before or on the start date; others operate on the basis of the offer letter alone.
Speed matters at the offer stage: top candidates often have multiple offers in play simultaneously. Companies that take more than a week to get an offer letter out after a final interview run a significant risk of losing their preferred candidate. A streamlined internal approval process for compensation and offers is a competitive advantage.