Here’s Everything HRs Must Know About Offer Letter And Appointment Letter

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It is high time for us to accept the fact that business letters are acutely important in the business world. Every working individual should know the significance of every business letter, the reason being that they serve as a formal method of communication. In addition to this, they even provide valuable details related to vital matters. Most importantly, they can also be used for legal purposes.

All that said, every working individual, especially HR professionals should have a clear understanding of every business letter. In this blog, we will talk about two crucial business letters- offer and appointment letters. We will tell you everything, from the offer letter sample to the significance of the appointment letter. In simpler words, this blog is going to be Offer Letter vs Appointment Letter

So, let’s start with the definition of both letters.

Offer Letter: It is an official letter that states or confirms that an individual is selected for a particular position in the company. It includes a number of important details that give a clear picture of the joining-related information to the new employee.

Appointment letter: It is also a formal letter given to a new employee confirming that s/he has been appointed for a job. It includes some additional information that you may not find in the offer letter sample.

What Goes in Offer And Appointment Letters?

Now that you know the meaning of both letters, let’s move forward and talk about the details that are included in the offer letter as well as the appointment letter.

Offer letter: We have not included points such as name, joining date, etc. That being said, here are some of the must-have details in an offer letter:

  • Conditions: some companies select candidates only if they clear the background check. Similarly, if your company has any such conditions, it should be clearly written in the offer letter.
  • Salary: This information is often overlooked by companies. People even do not include it on an offer letter sample. But, truth be told, the total salary of the new employee should be correctly written in his or her offer letter. In addition, companies can also include details such as pay periods on the letter.
  • Benefits: Companies should never forget to spell out the benefits they offer on an employee’s offer letter. This will help a new employee to build a sense of satisfaction.
  • Duties and Responsibilities: since an offer letter is meant to help a new employee to understand everything about his or her job profile, it should certainly include the duties and responsibilities that are expected of the person, so that everything is clear from the very beginning.
  • PTO: If a company provides sick days, vacation days, and policies on paternity, maternity, or menstrual leave, it should include and highlight them in the offer letter.

All the aforementioned points can add a lot of value to an offer letter.

Appointment Letter: Here are some important elements that should be included in a professional appointment letter:

  • Welcome paragraph: As mentioned earlier, an appointment letter is used to congratulate a new employee on securing a position. Keeping this in mind, HR managers should always start an appointment letter with a welcoming paragraph.
  • Expectations and T&Cs: Since you have already talked about the duties and responsibilities on the offer letter, just give a short and crisp picture of the expectations, terms, and conditions of their employment.
  • Things Not Mentioned In Offer Letter: several details that are not included in the offer letter such as non-compete clause, non-disclosure agreement, etc can be spelled out in the appointment letter.

That is it.

These are some of the critical things you need to know about the offer letter and appointment letter. We hope this blog talked about various new things that are not usually mentioned in an appointment or offer letter sample. So, next time when you draft any of these letters, write them with full confidence.

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