This is the third and concluding part of the interview stage sub-series. Our focus will be on offer letter from an employer to an applicant and acceptance of same by applicant.
When a candidate is done with the set of interviews and the employer has decided to hire the applicant, the next step will be for the employer to issue an offer of employment letter, to be accepted by the individual if he or she finds the terms and conditions of the offer letter, suitable and acceptable.
The result of hiring processes which started with the application, the conduct of the aptitude test and interview process is offer letter to a successful applicant. An offer letter is an employment contract which has terms and conditions. We would examine this document in greater details because of its strategic importance and the fact that it’s a legal document.
What is an Offer of Employment Letter?
An offer of employment letter is a written document issued by an employer to a successful candidate, communicating a job offer, on a full-time or part-time basis, permanent or contract basis. Also, the letter contains various terms and conditions of the job offer, and an “acknowledgement/acceptance” section, within a specified period. Usually, offer letters have validity period upon expiry of a set period an offer may be considered having lapsed and thus null and void.
These letters are considered as legal documents, so the proposed employee needs to study carefully, properly, and be certain he or she is comfortable working under the terms and conditions stipulated in the offer. It is also noteworthy that the majority of the contents of an offer letter would have been discussed and agreed between the employer and proposed employee, during the interviews. Where a candidate is unhappy with an offer letter, or a portion/section of the letter he or she may decide to decline the offer or make a counteroffer; and thereafter communicate same to the proposed employer. The proposed employer may also choose to reconsider their offer, if desirous of recruiting the proposed employee; or both parties may be unable to reach a mutually beneficial agreement, and thus end further discussions.
Standard Contents of an Offer of Employment Letter
Job title: This is the role the individual is being employed for; e.g., Customer Service Associate, Relationship Officer etc. In some cases where graduate trainees are recruited’ substantive positions are not assigned until after completion of the induction programme.
Job description: This provides an outline of the proposed employee’s responsibilities, duties or deliverables. A condensed summary of a job description is usually provided in an offer letter, while a detailed copy is provided upon resumption of duty by the candidate.
Reporting Structure: This specifies in which Unit or Department the proposed employee would be working and the officer he or she would be reporting to, in the organization. As stated earlier, graduate trainees may report to the Human Resources Department and remain there for a certain period before posting to the department of primary assignment.
Date of employment: This is the day the employee is supposed to commence work. A convenient date would have been mutually agreed at the interview stage.
Work hours: This provides information on the working hours of the company, and anything the proposed employee should know about none workdays, such as public holidays and or extend work hours and allowances such as overtime if any.
Salary and Allowances: This area deals with the compensation approved for the role and would have been agreed by both parties (that is, employer and employee) during interviews. It usually states the gross amount (including basic salary and other allowances) the individual is expected to earn annually. Further, depending on company policy, bonuses such as 13th month and profit-sharing may or may not be mentioned. This is because a company that is unable to pay 13th month, after including it in an offer letter, could be saddled with litigation issues. Items provided in an offer letter become legal and covenant between parties.
Benefits: This typically deals with any benefits available to the proposed employee; such as medicals, travel, car, club memberships, accommodation, etc. Also, a company’s benefits are related to the employee role or position; such that, the senior level one is in a company, the better benefits are accruable to the individual.
Probation: Most companies often operate a policy whereby the new employee go through a certain period, called probation. This could be a month, three, six or twelve months, depending on the company policy. It gives the company, time to evaluate the individual’s performance at work, and also verify references and any background checks that ought to be done. The individual becomes a confirmed staff once this period is exhausted and the staff’s evaluation and background checks are successful. Terms and conditions of employment contract slightly differ between the probation period and confirmation i.e pre and post probation periods.
Annual Leave: Number of leave days an employee is entitled to and when an employee may be due for annual leave. Most organisations do not approve or allow staff under probation to go on annual leave.
Telephone/Internet Policy: Telephone subsidy was available as well as a policy on the use of the internet during office hours.
Car Policy: When and where applicable car policy such as tools of trade (say for marketers) or status car and the disposal of the scrap value post depreciation is usually stated clearly to avoid ambiguity.
Resignation / Exit and Termination: Most companies will include their exit policy in the letter. It outlines what is expected of the employee and employer in the event of the employee’s desire to resign from / exit the company. Typically, the company would prefer a month’s notice where an individual wants to resign, to enable the organisation plan/hire a suitable replacement and execute a seamless hand-over of duties and responsibilities. In situations where this is impossible, companies also have an in-lieu of notice policy, where the employee will forfeit his or her salary for a month or use his accumulated or unused leave days (if any) in place of the notice required for resignation. Notice period usually varies during pre and post-confirmation periods.
Furthermore, the letter also usually provides the condition for termination of employment by the employer.
Acknowledgement of Offer and Confirmation of Acceptance: The company requests that the candidate acknowledges having read contents of the offer. Further, the individual is to confirm his or her acceptance of the terms and conditions of the offer letter, by writing his or her name, appending his or her signature, and lastly, dating the document within a specified period.
In general, an offer letter is an abridged copy of a company’s condition of service. Usually, most companies have conditions of service duly provided in a document called Staff Handbook. This document is usually handed over to each staff upon resumption just before the commencement of induction processes. New staff are expected to review critically and careful Staff Handbook to familiarise one with rules and regulations governing the organisation.
About the Author
The Author, Shuaibu Idris, a native of Kaduna State, was born in the 1960s and had his early education in Kaduna. He earned a Bachelor of Science (B.Sc) degree in Accountancy from Bayero University, Kano in June 1985, and holds an MA in Banking and Finance, 1993. He is an alumnus of Harvard Business School, as well as Lagos Business School and serves as Group Head of Human Resources of Dangote Group as well as Deputy Managing Director, Dangote Flour Mills Plc. A Fellow of several associations, he is an avid reader, writer and loves to impart knowledge gained from his work experience, and several trainings he has attended over the years; for it is written:
“Recite: In the name of thy Lord who created man from a clot. Recite: And thy Lord is the Most Generous Who taught by the pen, taught man that which he knew not.” (Quran, 96:1-5)
Therefore encourage one another and build each other up, just as you are doing (1 Thessalonians 5: 11)
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