Once you’ve made your hiring decision, it’s time to extend a job offer! Keep in mind, however, that the deal is not done until the offer is accepted.Let’s discuss the final step in bringing on that perfect new team member.
What is a Job Offer and What Does it Include?
Let’s recap where we are in the hiring process. First, we created a job description and posted it to job boards. Secondly, when the applicants started flowing in, they self-filtered with a questionnaire that contained elimination questions. Thirdly, when the process isolated a pool of qualified candidates, we started reviewing applications and resumes. Fourth, we performed phone screens to determine which applicants to interview. Fifth, we we conducted interviews. Seventh, we made our selection for the top candidate. Lastly, we are ready to offer the job.
There are three main components in the job offer process:
Creating the offer letter
Communicating the offer to the applicant via phone call and email
Receiving their acceptance (hopefully!)
Don’t Delay!
It’s important to remember, however, that when you’ve made a selection, the clock is ticking! If possible, telephone the same day they complete their final interview. Never forget that you have competition. Now that you have identified this person as the ideal candidate, you can be certain others have as well. In fact, the applicant could be waiting for job offers from several of your competitors.
How to Make a Job Offer Telephone Call
Before you write a script for the phone call, confirm a timeline such as start date. Include all pertinent information even if it seems unnecessary. Indeed, repetition prevents misunderstandings. Let’s review some pointers for the job offer phone call:
Be excited! You want your new hire to feel your enthusiasm.
Clearly tell them that you are formally extending the offer and explain:
Start date
Job title
Compensation
Contingencies if necessary (background check, drug screening, reference check, I-9 verification)
Ideally, you have already completed these, but you may be waiting for a background check service to complete their investigation or references to get back with you and don’t want to delay any longer.
Ask if they can accept over the phone
Notify them that you are sending an email with the formal job offer letter
Ask them if they have any questions and answer them thoroughly
What Do You Include In a Job Offer Letter?
After the phone call, send the offer letter email. Note that the job offer letter initiates the employer-employee relationship. Therefore, it must be a comprehensive document similar to a legal contract.
These are the basic elements in an offer letter, but your business may require additional information:
Position/Title
Name/Position of Supervisor
Reporting Structure
Work Schedule/Location
Full-time or part-time
General work hours
Shift, if applicable
Hybrid or remote work
Employee Type
Overtime exempt/nonexempt
Job Duties
Base Salary/Wage
Equity, if applicable
Bonuses/Commissions
Wage Disclaimers, if applicable
Benefits and Eligibility
At-Will Employment
Job Offer Letter Template
[YOUR NAME, ADDRESS, COMPANY, DATE)
[CANDIDATE NAME, ADDRESS]
Dear [CANDIDATE NAME],
[Company name] is delighted to offer you the [full-time, part-time, etc.] position of [job title] with an anticipated start date of [start date], contingent upon [background check, drug screening, etc.].
As the [job title], you will be responsible for [brief mention of job responsibilities and expectations].
You will report directly to [manager/supervisor name and title] at [workplace location]. Working hours are from [hours of day, days of week].
The starting salary for this position is [dollar amount] per [hour, year, etc.]. Payment is on a [weekly, biweekly, monthly, etc.] basis by [direct deposit, check, etc.], starting on [date of first pay period]. In addition, you will be eligible to receive [discuss additional compensation potential].
[Company name] offers a comprehensive benefits program, which includes [medical insurance, 401(k), paid time off, etc.].
Your employment with [company name] will be on an at-will basis, which means you and the company are free to terminate employment at any time, with or without cause or advance notice. This letter is not a contract indicating employment terms or duration.
Please confirm your acceptance of this offer by signing and returning this letter by [offer expiration date].
Here is letter for a job offer that is contingent on unfinished processes.
Dear Kimberly
It’s our pleasure to offer you the position of ICBM Propulsion Equipment Specialist, which is a full-time exempt position. The starting salary is $85,000 with a start date of August 1, 2022. This job offer is conditional upon a drug screening performed by an outside service. This conditional offer is valid until July 5, 2022.
Please complete the test before July 1, 2022. We’ve attached instructions for scheduling and completing the test.
If you agree to the terms of this job offer, please sign below and return this letter by June 5, 2022. If you accept this offer, we will contact you when we receive the screening results.
Depending on the position, you may need additional documents. For example, confidentiality and noncompete agreements. In addition, you may need invention assignment and intellectual property terms.
Rejection Letters for the Finalists
Of course, when your candidate accepts, you’ll need to let the other finalists know that they have been eliminated. Make sure you give these letters as much thought as the offer letter. After all, the applicants who make it to this stage are high performers that are interested in working for your org. Plus, they have spent time in interviews and taking assessments. Therefore, end the process on a positive note so they’ll be more likely to apply for future positions.
Rejection Letter Example
Date
Name of Applicant
Applicant’s Address
City, State, Zip Code
Dear (Applicant’s Name):
Thank you for your application for the position of shipping coordinator at DLT Industries. As you can imagine, we received a large number of applications. I am sorry to inform you that you have not been selected for an interview for this position.
The DLT selection committee thanks you for the time you invested in applying for the shipping coordinator position. We encourage you to apply for future openings for which you qualify.
Best wishes for a successful job search. Thank you, again, for your interest in our company.
Best,
Real Person’s Name and Signature
Example: HR Director for the DLT Employee Selection Team
Your ideal candidate has accepted your job offer. Hooray! You can’t rest, however. It’s time to maintain their enthusiasm with great onboarding. We discuss onboarding in detail here: The Onboarding Process–Steps and Checklist.
ApplicantStack Offer Letter Templates
Fortunately, there is easy to use software that automates the job offer process. ApplicantStack allows you to build templates for all types of candidate communications. Creating an offer letter template in your ApplicantStack document library is easy. Add as many merge fields as needed. A merge field imports information you have recorded elsewhere–candidate’s name, address and job description, for example.
The candidate will receive an email including the offer letter and can sign the acceptance electronically. The offer letter will then be available in the candidate profile record.
The Benefits of Using ApplicantStack For Extending Job Offers
Create offer letter templates for each position—you will always be ready to extend an offer
Merge fields in letter templates allow you to import information stored in the system
Brand your offer letter with your company logo and colors to reflect your company brand
Electronic signature allows your perfect candidate to accept the offer upon receipt of the email
Improve Recruiting to Find Better Hires in a Tight Labor Market
If you have a slow hiring process, you are at an extreme disadvantage. When you can’t find qualified people, you can’t implement your business goals. This is an unnecessary obstacle to success. Even in a competitive hiring landscape, there are growth opportunities! To take advantage of these opportunities, you need the right people to execute your vision.
ApplicantStack Was Created by Human Resources Professionals Using Best Practices
ApplicantStack hiring software was created in 2007 by recruiting professionals. Since its launch, the ApplicantStack team has continually improved the platform, adding dozens of features in the process. In-application texting, for instance.
ApplicantStack makes it easy to use best practices to find quality employees in a timely manner. Regardless of the size of your company, you can follow our step-by-step How to Hire Your Next Employee guide. After all, there is no reason to reinvent the wheel when it comes to recruiting workflows.
Brand New Employer?
If you are a start-up, congratulations! Take the time to incorporate recruiting best practices from your first round of hiring. That way, you will start out strong and build effective hiring workflows that will serve you for years to come. Plus, your hiring team will never become burned out with tedious manual processes.
Do You Have a Recruiting Mess on Your Hands?
On the flip side, however, If your hiring process is in trouble—no problem. Follow our guide to revamp your recruiting system. With the right software (ApplicantStack, of course!) it won’t take long to identify and remove process bottlenecks. Your hiring team will also appreciate using the best hiring tools for their critical job roles.
ApplicantStack Helps You Create an Applicant-Centric Hiring Process
By now, you’ve likely whittled down your candidate pool to just a few prospects. Now it’s time to make your hiring decision!
The Goals of Your Hiring Decision
All of the hiring committee’s hard work is now put to the test. Your hiring decision should ensure the new hire has the skills and qualifications you need and quickly adds value to the team. Unfortunately, the last step can often be the hardest, as it also means saying “no” to some of the best prospects. But with a little more digging, you can be sure to hire the best candidate.
How Long Should a Hiring Decision Take?
This will depend on the role, company size, industry, applicant pool and labor market. A restaurant owner might choose a server in two weeks while a hospital takes six months to hire a heart surgeon. According to LinkedIn research, the industries/job roles with the longest hiring processes are engineering (49 days), research (48), project management (47), business development (46), finance (46) and IT (44). In contrast, the average time to hire for customer service positions is 34 days.
One thing’s for certain, companies are retooling hiring processes to fill positions faster. The employment market is too competitive to struggle with old-school methods. Not surprisingly, technology is key.
Investment in technology is imperative to support the pace of accelerated hiring needed for businesses across industries. In today’s job market, where candidates are now being pursued both nationally and internationally, and often receive multiple offers concurrently, it is critical for employers to rely on technology to expedite the hiring process. Tim Dowd, CEO of Accurate Background
What to Review Before Making Your Hiring Decision
The time has come to make a selection from your pool of top candidates. You want to be careful, but you risk losing applicants if this stage takes too long. You need to review the candidate scorecards, check references and perform a background check. Each of these tasks is important. The candidate scores measure hard and soft skills. Reference checking verifies work experience and credentials. A background check can uncover a criminal record or other red flags.
What is a Background Check?
A background check as part of a job application is a review of the applicant’s records and history. The employer wants to determine if the applicant is honest and trustworthy. They want to know if he/she poses a threat to the company in any way. For example, if the applicant has been convicted of theft or an assault, it would raise red flags.
Employers also check other information specific to the job role. For an accounting position, the employer might review the applicant’s financial records. If the applicant was highly leveraged with debt, the potential employer probably wouldn’t be comfortable letting them handle company funds.
Most employers contract with a company that specializes in performing background checks.
The purposes of a background check include the following:
Confirm the applicant’s identity
Determine if the applicant has a criminal record
Verify the employment history listed on the resume and/or application
Confirm the education listed on the resume and/or application
Review the applicant’s driving record (if applicable)
Check the applicant’s credit history (if applicable)
There are federal and state laws that regulate background checks. It’s important that employers understand how to conduct legal background checks.
When Should I Perform a Background Check For a Job Applicant?
Background checks are generally done following the review, before you extend an offer. However, it might make sense for you to do it at another point in the process.
What is a Reference Check?
Employers perform reference checks to evaluate and verify an applicant’s employment history. The candidate provides the names and contact information for the references on their resume or application.
There are two main types of references: professional and personal. A professional reference is usually a previous (or current) employer, manager, business associate, or client. A professional reference provides information about work history and skills.
If an applicant is new to the workforce and has no professional contacts, they might provide a personal, or character, reference. A personal reference may be a teacher, professor, coach, member of the clergy, or supervisor at a non-profit.
Reference checks vary in the types of information obtained. The employer might simply verify dates of employment and the job title. With a more extensive inquiry, the employer seeks information about the applicant’s performance in previous job roles.
Reference checks are regulated at the federal and state level. It’s important to understand how to conduct compliant reference checks.
What if the Process Reveals Two Top Picks?
What a great problem to have! In this era of low unemployment and talent shortages, some recruiting teams can’t find one top candidate, let alone two. If this happens to you, backtrack over the evaluation process. Are there stones left unturned? For example, perhaps because of the nature of the position, you didn’t do reference checks. Now’s the time to dig deeper to gain more insight into the candidate’s background. It always helps to spend more time with both candidates. For example, you can tour the office or share a meal. Be alert to differences in the way each candidate interacts with the team. We dive deeper into this topic here: Torn Between Two Equally-Desirable Candidates? How to Choose the Right One.
Make Sure Everyone is in Agreement
The goal is to build a consensus among the hiring committee. In most companies, the hiring manager has the final say if members of the team disagree. However, it’s important to discuss each team member’s concerns. If someone doesn’t agree with the manager’s pick, they may understandably become resentful. Of course, the hiring manager can’t make everyone happy if there are disagreements. However, discussing everyone’s concerns shows respect for others’ opinions.
How Can ApplicantStack Simplify Reference and Background Checks?
ApplicantStack applicant tracking system streamlines the evaluation and hiring decision process. For example, you can trigger reference and background checks at any stage in the hiring process. The candidate provides the references on the application and the software sends emails directly to references. All feedback is imported into the candidate profile.
ApplicantStack Automation + Customization
Intelligent automation and the ability to customize prevents logjams. This is true for the background and reference checking stages as well as the other workflows in the hiring process.
Background screening
This workflow can be triggered at any stage
The applicant is automatically sent a screening email
Reference checks
Can be triggered at any stage in the hiring process
Auto emails are sent to the applicant’s references
Responses are imported into the candidate feedback tab
Does ApplicantStack Integrate With Background Screening Companies?
ApplicantStack integrates with several background screening companies and we’re adding more all the time. Our current background screening partners are Verified First, Accurate Now, Amerisearch, CareerBuilder Employment Screening, DISA, and Trak-1.
Select Your Next Employee
Based on the feedback during the previous steps, you can now make your selection of the top choice candidate. When this stage is finished, you are ready to offer the job!
This article is part of our comprehensive series on hiring employees.
Built for Hiring. Priced for Small Business. ApplicantStack is an applicant tracking system built to improve your entire hiring and onboarding process. From recruiting, interviewing and vetting, to hiring and onboarding top candidates, ApplicantStack makes your people...
Diversity hiring refers to the practice of organizations recruiting individuals from underrepresented groups. Workplace diversity refers to a staff demographic makeup that includes members of underrepresented groups similar in proportion to the society at large. For example, if the general population is 20% black, 52% female, 15% Latino, an organization’s labor force would have a demographic makeup similar to that of the general population.
Hiring bias prevents organizations from achieving workforce diversity. Companies that do more than pay lip service to diversity identify and eliminate the biases found in their hiring process.
Get Rid of Hiring Bias – 6 Most Common Types
These are categorized as cognitive biases. A cognitive bias is a flaw in judgment. Think about a coin toss that comes up heads ten times in a row. Although statistics dictate that there is always a 50% chance–or probability–that the next toss will be tails, it seems unlikely.
1. The Halo Effect
We are all aware that first impressions matter. This is related to the halo effect. Once we have a positive opinion of someone, it can be difficult to change our mind. The halo effect refers to the phenomenon whereby a person’s positive qualities are perceived to extend beyond his or her actual accomplishments.
2. Expectation Bias
A recruiter might look at dozens of resumes and form an impression based on a candidate’s qualifications, without ever meeting the person in question. This can lead to the halo effect—an exaggerated sense of someone’s abilities, due to a positive first impression. The recruiter may be more likely to overlook obvious flaws.
3. Confirmation Bias
Confirmation bias is the tendency to seek out information that validates one’s own opinion. As a hiring bias, it’s the tendency to focus only on the aspects of a candidate that coincide with your pre-established opinion.
4. Anchoring Bias
The hiring bias known as anchoring occurs when a hiring manager fixates on one piece of information and gives it more weight than it deserves.
5. Social Comparison Bias
Managers hiring for their own team are especially prone to the social comparison bias, which is a tendency to dislike or feel competitive with others who may have similar skills.
6. Ingroup Bias
Ingroup bias is the tendency to favor people who are similar to oneself. In other words, it is favoritism based on group membership. This can be seen in biases against women or minorities, but there are also less obvious examples of ingroup bias. For example, some hiring managers might look more favorably on fellow alumni.
Now that we have discussed types of unconscious bias, you should be aware of their existence and how they can negatively impact your hiring process. An applicant tracking system (ATS) can be used in many ways to reduce bias. For example, an ATS can hide aspects of a candidate’s profile that you don’t want to consider. Also, you can use an ATS to manage gender- and ethnically-neutral job descriptions. Plus, you can decrease the shared information bias when everyone keeps notes in a central location. Lastly, tracking all candidates and hires in a centralized location makes it easier to track diversity metrics.
Improving Your Organization’s Diversity – An 8 Step Program
After you have identified the types of hiring bias present in your organization, it is time to create an action plan for how to reduce and hopefully eliminate them.
1. Set Goals that can be Measured
Examine your company’s current demographics, and create short- and long-term goals to achieve parity.
2. Incorporate Employee Resource Groups
Use employee resource groups (ERGs) during interviews to make diverse candidates feel more comfortable. If you do not currently have ERGs, encourage your staff to create them and support them in the effort.
3. Blind Resume Assessment
Studies show that resumes with white-sounding names receive more callbacks or interviews than those that seem non-white, so many candidates ‘whiten’ their names and backgrounds. You can use an ATS (Applicant Tracking System) to remove names and hide demographic information.
4. Diversify Your Hiring Team
Do the members of your hiring team represent the diversity of your applicant pool? If minority candidates have several job openings to choose from, the makeup of the interview team could be a factor in their decision.
5. Train Employees on Hiring Bias
In order to increase workforce diversity, employees must be aware of unconscious bias and how it can negatively affect the workplace. You can create your own internal training program, hire a consultant, or use online resources like Google’s unconscious bias training.
6. How to Write Compelling Job Ads with the Right Requirements
Make sure your job descriptions are free of gender-specific language. You can always use the job title in place of any pronoun.
Just as important as giving your job descriptions a makeover, consider your job requirements. If ‘corporate culture match’ is a hiring criterion, remove it. This is an easy place for unconscious bias to creep in, and will hinder your efforts to increase workforce diversity. Furthermore, if you have a homogenous workforce, you don’t want to use it as a measuring stick anyway.
7. Use Structured Interviewing
Rewrite interview scripts to remove bias, and train your interviewers to use them correctly by following EEOC guidelines. Manage your structured interviewing scripts in your ATS.
8. Ask Employees for Diverse Referrals
In addition to revamping recruitment communications, use your employee referral program. Encourage employees to refer qualified applicants from underrepresented groups.
Video interview software allows hiring managers to conduct video interviewing online. Video interviewing is the practice of conducting a remote job interview. Video interviews are conducted over the internet and allow businesses to interview candidates in locations that are more convenient for each party.
Some companies use general-purpose software like Zoom and GotToMeeting to conduct interviews. However, video interview software is designed specifically for job interviews.
Benefits of Video Interviewing
Recruiters can conduct interviews using web cameras or similar devices, allowing the interviewer to be in one location and the job candidate in another.
Applicants can talk to hiring managers while self-isolating due to COVID-19
Applicants can record video interviews at their convenience and send them to the hiring manager, who can watch the interview at his/her convenience.
Candidates who are currently employed can schedule an interview more easily and might not have to miss work.
Companies that use video interviews strengthen their employer brand, creating a better applicant experience and demonstrating their commitment to cutting-edge technology and hiring practices
How does video interviewing software work?
Hiring managers looking to invest in video interviewing software have two options: one-way recorded interviews or two-way live interviews. Some programs offer both capabilities.
One-Way Video Interviewing
Employers using one-way video interview software send applicants a list of questions and topics to prepare for before an interview. Then they have the opportunity to record responses on their own time and send the video back to the employer. This is a simple and efficient way to conduct interviews.
Create text or video based questions
Restrict think time
Control the number of takes allowed
Limit max answer length
The one-way video technology gives applicants flexibility in scheduling the interview while holding them accountable for submitting a professional, well thought out interview. They do not have to come into an office, but they do have to set up a video recording of themselves.
Two-Way Video Interviewing
Two-way live video interview software allows hiring managers to conduct face-to-face interviews with remote candidates. Scheduling a two-way video interview requires the hiring manager to contact the applicant and agree on a time that works for both parties. Candidates scheduled for a two-way video interview prepare as they would for traditional interviews by compiling a resume, analyzing their strengths and weaknesses, and coming up with answers for possible questions.
Here are some tips for hiring teams:
Record full-length interviews
Brand your interviews
Conduct interviews directly in your web browser
Receive concierge support
Why should small business hiring teams use video interview software?
There are many advantages to using video interviewing platforms. Some of the advantages hiring managers gain when they switch to video interviewing include:
It’s cost effective
Scheduling a virtual meeting is more convenient and can take place outside of normal business hours
Allows for consistent interview questions
Easy to track performance and compare applicants
Reveals how candidates handle technology
Helps hiring mangers find employees they wouldn’t have found otherwise
Video interviewing technology can streamline the recruitment process by saving time, energy and money. It allows hiring managers with packed schedules to find the right time for an interview—even if it’s after work hours—and gives applicants the convenience of interviewing from their own home (or wherever they feel most comfortable).
![The Job Offer: The Offer Letter [with Templates]](https://www.applicantstack.com/wp-content/uploads/2022/03/offer-job.jpeg.webp)
