When hiring staff, it is a good idea to establish the terms and conditions of their employment. That begins with the job offer – in the form of an offer letter. (For executives, a more formal employment contract is often a good idea, and we will cover that topic in a future blog.)
Although you should make the initial job offer verbally, a follow-up offer letter clarifies what the position entails and the associated salary. Without this written documentation, you might run into confusion or conflict with employees down the road – or, worse yet, you might lose an employee over misunderstood employment terms. After months of recruiting and training, that could be a devastating loss of time and resources invested in that person.
Keep your offer letter short and to the point, but include these items:
- Employee’s job title
- Supervisor’s name
- Start date
- Explanation of pay terms: salary, commission, etc.
- Identification of employee classification: exempt or non-exempt
- Rate of pay: specific hourly wage, annual salary amount, etc.
- Paycheck schedule
- Expected working hours (e.g. Monday-Friday, 8 a.m. – 5 p.m.)
- Benefits eligibility
- A statement of at-will employment
- Additional conditions of employment: non-compete agreement, non-disclosure agreement, etc.
For assistance with drafting your employee offer letters and other small business legal documents, contact EmergeCounsel today.