No matter how much homework and preparation candidates do before coming up for an interview, they will only have a vague image of an organization in the beginning. Also, you cannot expect someone to just go through your website, read a few blogs or talk to an employee and become an expert right away! It normally takes months of employment and a long-term experience for the candidates to know-it-all about a company. Having said that, the question is whether you want them to remain clueless for the days to come? Or for how long can you afford them to be in this state of oblivion? Not much, right?
This is where the vitality of an elaborate offer letter format comes into play. As soon as you shortlist an applicant to join your organization, it is mandatory to share a formal document with them mentioning their job confirmation, position and remuneration offered among other details. This is the prime significance of producing an offer letter – it shows that you are organized and authentic enough to maintain timely release/ record of paperwork.
Now, let us take a look at some of the main reasons why offer letter elements can easily reflect an organization’s culture and values:
Gives Clarity On Job Related Parameters
After a warm welcome and greetings, the foremost information provided to candidates through an offer letter is the basic job related data encompassing designation, work level, department, job location, shift, salary break-up and working hours and days. This shows how professional you are, how cordially you treat the new joinees and how excited you are to have the candidate onboard. Besides, it keeps them in light with all the particulars right in front of them.
Explains Employee KRAs and KPIs
After providing a glimpse of the offered position and related factors, the next section talks entirely about an employee’s all-inclusive work routine and goals. If sources are to be believed, 63% of job applicants feel trapped in an organization after saying yes due to miscommunication regarding job roles, performance management or career growth and quit very soon. So, keeping this kind of information in the offer letter makes you look transparent from the very beginning. It eases the candidate’s decision-making at the time of offer letter acceptance/ rejection and leaves a positive impact on the candidate.
Depicts Workflow and Processes
It is very important for an employee to understand how the entire organization operates and how its different processes are interlinked. It is advisable to share a small part of this information with the candidates beforehand by choosing a suitable offer letter format so that it gets easier for them to understand everything in depth at a later stage. Doing this, you are ensuring that the candidates are comfortable with your workflow if they have accepted the offer and agreed to follow the processes that you practice.
Elucidates Compensation and Benefits
Compensation and benefits are the monetary/ non-monetary perks offered by an organization to its employees such as rewards and recognition, tour packages, team parts and other activities.. If this area is covered by one of the elements of your offer letter template, it is evident that you definitely care for your employees. It not only shows that you are concerned about your employees’ performance, but also make efforts to motivate them from time to time.
Illustrates Company Policies
As sensitive as it sounds, company policies are a must to explain before a candidate says “yes” to working with you. There are multiple reasons for an employee to start looking for another job, hiding company policies shouldn’t be one of them. When you are straight forward from the beginning, there are lesser chances of complications later. Thus, no matter how petty or critical a rule/ policy is, the candidate deserves to be informed about it in advance.
Many a time, we take contemporary documentation like an offer letter for granted. But, considering the huge impression it can make on the employee’s mind before even joining the organization, there is no harm in keeping it precise and detailed at the same time.