This might seem like the easy part. After all, you’re giving someone good news! But the offer letter isn’t just a formality. It’s your first official handshake with your future employee — a document that sets expectations, outlines the basics, and (hopefully) answers some of the questions your candidate hasn’t even asked yet.
A solid offer letter format saves everyone time, builds trust, and helps avoid confusion later. Get it right, and you’re off to a great start. Miss the mark, and you might cause delays…or worse, second thoughts.
In this guide, we’ll break down what an offer letter is, what it should include, and exactly how to write one. We’ve even included a plug-and-play offer letter template you can copy, paste, and customize. Because your time is better spent onboarding top talent, not reinventing the wheel.
What is an offer letter (and why does it matter)
An offer letter is a written document you send to a candidate when you’re ready to hire them. It spells out the basics of the job — things like the role, pay, start date, and where to sign on the dotted line. It’s not as detailed (or legally binding) as an employment contract, but it’s still important.
Think of it as the formal bridge between “We want to hire you” and “Welcome aboard.”
A clear, well-written offer letter does a few things:
- It confirms the details both sides agree to.
- It sets expectations from day one.
- It helps avoid future miscommunications about the role, pay, or benefits.
It also gives your new hire a chance to say yes with confidence or ask the right questions before they commit. And if you’ve ever had to walk back a verbal agreement because something didn’t line up, you already know how helpful that can be.
Read this next: 12 things you need for a positive candidate experience
What to include in your offer letter format
Before you start writing, it helps to know what to actually include in an offer letter format. And no, this isn’t the time to get poetic. Think: specific, clear, and complete.
Here’s what to include, line by line:
1. Job title and start date: State the exact position being offered and when you expect them to start.
📌 Example: “We’re pleased to offer you the full-time role of Software Engineer, starting June 3, 2025.”
2. Compensation details: Include the salary (or hourly rate), how often it’s paid (weekly, biweekly, monthly), and if bonuses or commissions are part of the package.
📌 Example: “Your starting salary will be $95,000 per year, paid biweekly.”
3. Employment type and schedule: Is this full-time or part-time? Exempt or non-exempt? Hybrid, remote, or on-site? Be specific.
📌 Example: “This is a full-time, exempt position based in our New York office, with a hybrid work schedule (3 days in office, 2 remote).”
4. Reporting structure: Let them know who they’ll be reporting to and the person’s title.
📌 Example: “You’ll report to Jane Smith, Director of Engineering.”
5. Benefits overview: You don’t have to list every single perk, but hit the big ones — health insurance, retirement plans, paid time off, etc.
📌 Example: “You’ll be eligible for our standard benefits package, including medical, dental, and vision insurance; a 401(k) with company match; and 15 paid vacation days per year.”
6. Contingencies: If the offer depends on things like background checks, reference checks, or proof of work eligibility, this is where to say it.
📌 Example: “This offer is contingent upon successful completion of a background check and verification of employment eligibility.”
7. At-will employment clause (if applicable): This covers the legal stuff. In many U.S. states, employment is “at will,” meaning either party can end the relationship at any time for (almost) any reason.
📌 Example: “This letter is not a contract. Your employment will be at-will, meaning either you or the company may terminate it at any time, with or without cause or notice.”
8. Offer expiration date: You don’t want your offer hanging out in the void. Set a deadline.
📌 Example: “Please sign and return this letter by Friday, April 11, 2025.”
9. Signature fields: Include a place for the candidate to sign and date the offer. Add one for your company representative, too. Paper trail = good idea.
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Offer letter template (copy + paste)
Below is a simple, customizable offer letter template you can use for most full-time roles. Just swap out the placeholders for your details, and you're good to go!
📎 Pro tip: Want your offer letter to look polished, too? We love Canva’s job offer templates to design a clean, professional-looking document — no design degree required.
Subject: Offer of Employment from [Company Name]
Hi [Candidate Name],
We’re excited to offer you the position of [Job Title] at [Company Name]. We’ve enjoyed getting to know you throughout the interview process, and we’re confident that you’ll bring great value to our team.
This is a [full-time/part-time], [exempt/non-exempt] position based in [location or “remote”], with a scheduled start date of [Start Date]. In this role, you’ll report to [Manager Name, Title].
Your starting salary will be [$XX,XXX] per year, paid [biweekly/monthly]. You’ll also be eligible for [bonuses, stock options, or “additional compensation,” if applicable].
As a member of our team, you’ll have access to a range of benefits, including:
- Medical, dental, and vision insurance
- 401(k) plan with company match
- [Number] paid vacation days per year
- [Any other relevant perks like wellness stipends, professional development budgets, etc.]
This offer is contingent upon the successful completion of a [background check/reference check/work eligibility verification, etc.]. Please note that your employment with [Company Name] is at-will, meaning either you or the company may terminate the relationship at any time, with or without cause or notice.
To accept this offer, please sign and return this letter by [Date]. If you have any questions, feel free to reach out to [Contact Person’s Name + Email/Phone].
We’re looking forward to officially welcoming you to the team!
Warmly,
[Your Name]
[Your Job Title]
[Company Name]
[Company Contact Info]
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Best practices for writing an offer letter
Writing a solid offer letter sets the tone for a new chapter for the candidate and your team, so make sure you take the time to proofread, customize, and craft a letter that feels genuine to your company. These best practices will help you strike the right balance between professional and human.
1️⃣ Be clear and specific
Skip the vague language. This isn’t the place for “competitive salary” or “some travel required.” If it’s truly negotiable, say that. If it’s fixed, be direct. You want the candidate to sign (or pass, potentially) with zero confusion about what’s being offered.
2️⃣ Get names and titles right
Double-check how your candidate spells their name. Get their job title right. You don’t want the first official document they receive to have a typo in it; that’s a fast track to second thoughts.
3️⃣ Match the tone to your company culture
If your company leans formal; use more polished language. If you’re on the casual side; keep the tone relaxed (but still clear). Think of the offer letter as the written version of your company handshake, i.e. make sure it feels like you and your company culture.
4️⃣ Avoid legal jargon unless you need it
Unless your legal team requires it, there’s no need to stuff the letter with clauses no one reads. Stick to plain English where possible. If something is legally required (like an at-will clause), include it clearly and simply.
5️⃣ Leave room for questions
Even the clearest letter might raise a few eyebrows. Give the candidate a point of contact they can reach out to with questions — preferably a human, not a generic inbox.
6. Add a personal touch
This doesn’t mean writing a novel. A short, thoughtful line like “We’re excited about the perspective you’ll bring” or “The team’s already looking forward to working with you” goes a long way.
7️⃣ Proofread. Then proofread again.
This one’s boring but important. A single mistake (especially around pay, start date, or title) can undermine your credibility. Run it through spell check. Then have a real person look it over.
Now that you understand what makes a great cover letter, we’ll bet you’re curious what doesn’t work. Let’s talk about the red flags and easy-to-miss mistakes in the next section.
Read this next: 18 new hire onboarding survey questions to improve retention
What not to do in an offer letter
An offer letter doesn’t need to be perfect, but there are a few landmines you’ll want to sidestep. Here’s what to avoid:
❌ Don’t get vague about pay
“We offer a competitive salary” sounds like code for “We’re still figuring it out.” Be direct. Say how much, how often, and when they’ll get paid. People notice the details, especially when those details impact their rent.
❌ Don’t forget the deadline
Leaving the offer open-ended can lead to ghosting, delays, or confusion. A simple “Please respond by [date]” creates structure and gives the candidate a clear timeline to follow.
❌ Don’t misspell the candidate’s name
It happens more often than you’d think. Nothing says “we don’t really care” quite like getting someone’s name wrong on the document that’s supposed to make them feel wanted.
❌ Don’t use language you can’t back up
Avoid phrases like “permanent position” or “guaranteed bonuses” unless your legal team signs off on it. If you’re not 100% sure something is set in stone, leave some wiggle room or explain the conditions.
❌ Don’t get too casual
Sure, you want to sound friendly, but don’t let it turn into a text message. “Hey! So stoked you’re joining us 🎉” is great for Slack. Not so much for a formal document outlining employment terms.
❌ Don’t skip the fine print
Even if it’s short, your letter should still include essentials like the job title, compensation, start date, and any contingencies. Forgetting those pieces can cause issues down the road…or at least a bunch of follow-up emails.
❌ Don’t use a one-size-fits-all template
You can start with a standard format (like the one we shared above), but always tailor it. A letter for a remote contractor will look different than one for an in-office executive. Context matters.
A little attention to detail goes a long way. Skip these mistakes, and your offer letter will do what it’s meant to do: help your future hire say “yes” with confidence.
The bottom line on offer letters
An offer letter might seem like a small step in the hiring process, but it carries weight. The right offer letter can set the tone, answer questions before they’re asked, and make your new hire feel like they’ve made the right call.
Keep it clear. Keep it human. Say what you mean, double-check the details, and don’t overcomplicate it.
Looking to improve more than just your offer letters? PowerToFly helps companies find top talent, streamline hiring, and build high-performing teams — from first outreach to final offer. Schedule your free demo today.
