You have diligently followed the steps to hiring an employee:

  1. You created a hiring road map – the job description.
  2. You advertised in the right places to attract good applicants.
  3. You objectively screened all the applications received.
  4. You conducted a thorough, relevant, objective job interview with each candidate.
  5. You evaluated all interview candidates and have selected the best one.

You are now ready to make an employment offer. In determining what to offer, you must:

  • Determine the pay rate
  • Determine benefits, if any, that you will offer (e.g. medical, dental, life insurance, etc.)
  • Identify other aspects of compensation (e.g. bonus, vacation time, etc.)

After considering all of these factors, prepare a written letter of offer. A written offer is important to ensure that the candidate is aware of the terms and conditions of employment. It ensures that there is no room for interpretation, and prevents misunderstandings from occurring. Any questions that arise will be dealt with prior to the start of employment.

Common components of an offer letter are:

  1. Position title
  2. Basic duties & responsibilities
  3. Start date
  4. Compensation, including rate of pay & overtime considerations
  5. Bonus system, if any
  6. Work hours
  7. Probationary period
  8. Benefits & insurance
  9. Vacation entitlement
  10. Statutory holidays

Depending on the relevance to the position, other components that can be included are:

  • Applicable policies and procedures
  • Confidentiality agreement
  • Termination agreement
  • Restrictions should employment end

The next steps are:

  1. Call the candidate to make the offer and provide them with a reasonable time frame to consider their decision.
  2. Follow-up with the written offer.
  3. Should the candidate make a counter-offer – be prepared to discuss the counter and adjust the terms and conditions as you are comfortable. Know your budget restrictions and consider what is currently in place for other employees in your company and in the industry.
  4. Reach an agreement on the terms and conditions of the offer.
  5. Agree on a start date.
  6. Start an employee file to keep all the records and documents for the employee.
  7. Prepare for your new employee’s orientation to your company.

If all goes according to plan, your new employee will come on board as soon as possible. However, be prepared for delays in the process. Also, should the candidate not accept your offer, you will need to make an offer to another qualified candidate. Should one not exist, you need to recycle back through the employee search process to find the right employee. Remember, don’t settle! The right employee is critical to your success.

Good luck hiring your next employee!


Copyright 2008 Clear HR Consulting Inc. All rights reserved.