Once Human Resources and the hiring manager have been through the interview process with potentially several prospective candidates for a position at their company, it is time to send a letter of intent to hire their top candidate. The letter is an important step for both parties and is the beginning of final negotiations between the parties.
When a prospective employee receives a letter of intent to hire, they can accept the offer as is or, depending on the offer and other opportunities they have may discuss a counteroffer with Human Resources. Terms such as start dates, benefits, salary, and vacation days are often considered as potential negotiation areas. For Human Resources and hiring managers, the letter of intent should also reflect your verbal discussions with the prospective employee. Avoid surprises to enable a smooth hiring process.
What is a Letter of Intent to Hire?
A letter of intent to hire is sent from a company or institution offering employment to an individual they wish to hire for a permanent or temporary position. The letter should state clearly the terms the firm is prepared to offer and discussed during previous interviews. The letter should cover the following topics:
- Position offered
- Responsibilities,
- Salary
- Term of employment
- Start date
- Vacation
- Benefits
- Other terms and conditions pertinent to the position and parties involved
The candidate can decide to accept the offer of employment, negotiate the terms or decline the offer.
How to Write a Letter of Intent to Hire?
Usually, human resources will prepare the letter of intent to hire following a standard format used within the company. However, many smaller organizations do not have a human resources group, and preparing the letter falls to the hiring manager.
In advance of preparing the letter, all of the terms and conditions should be understood internally within the company or institution and approved by the organization. These terms are generally discussed with the candidate in advance as well, so there are no surprises for either party.
Collect all of the pertinent information needed for the letter and select a standard template for your use. You will require:
- Full name of the candidate
- Address
- Title of the Position offered
- List of Responsibilities,
- Salary offered
- Term of employment – permanent or temporary
- Start date
- Vacation – full vacation and proration if starting mid-year
- Benefits – many companies do not offer benefits, make sure to include them if yours does
- Other terms and conditions pertinent to the position and parties involved
Once you have all of the data you require, your ready to begin preparing the letter of intent to hire.
Format – Letter of Intent to Hire
(Your Name)
(Title, Company or Institution)
(Full address and)
(Phone number)
(Date)
(Candidate the letter is addressed to)
(Full address, and)
(Phone number)
Dear (Name) or (
Body – Paragraph 1 – Introduction
Body – Terms and Conditions
Body – Additional T&C’s pertinent to the parties
Body – Summary and reply date request
Closing – Sincerely, regards,
(Signature)
(Printed Name)
Candidates Acceptance
(Candidates Signature)
(Date)
(Printed Name)
Sample Letter of Intent to Hire
(Your Name)
(Title, Company or Institution)
(Full address and)
(Phone number)
(Date)
(Candidate the letter is addressed to)
(Full address, and)
(Phone number)
Dear (Name)
This letter of intent to hire offers a position to (Name) made by (Name of firm or institution) and work address located at (address of candidates proposed work location) as a (Job Title) as discussed and including the terms and conditions as follows:
Full or Part Time: (State either full time or part-time position, if part-time state hours and other details as needed)
Salary: (State hourly rate or annual salary)
Pay Period: (State, weekly, biweekly, or monthly and include the day of the week or month)
Vacation: (Indicate the annual paid vacation if applicable.), (Also include a policy for prorating vacation days if the candidate is starting mid year)
Probation Period: The candidate understands that the candidate may be terminated during the first 30 days of employment at the absolute discretion of the company without notice or cause for any reason.
Termination Notice: The candidate at any time, may terminate their employment by providing a minimum of 30 days’ notice in writing to the company.
The company may also terminate the employment of the candidate for any reason and at any time with a minimum of 30 days’ notice after the candidate has completed the probation period. The company must adhere to the Employment Standards Act of 2000 and show sufficient cause as per the Act.
Non-Compete: (optional depending on the position and the industry) Upon termination, the candidate agrees to not hire employees away from the company. In addition, the candidate agrees to avoid communication with the company’s clients, customers, affiliates, and other pertinent individuals connected to the company for a period of ( indicate number of months).
Binding Effect: This letter shall be considered non-binding (OR} This offer is valid until (Date)
Additional T&C’s: (Pertinent to the parties as discussed during interviews or not included above)
Please respond no later than (Date)
Sincerely,
(Signature)
(Printed Name)
Candidates Acceptance
(Candidates Signature)
(Date)
(Printed Name)
Letter of Intent to Hire (Word Template)
Tips and Things to Avoid
Although this may seem obvious, always seek the appropriate approvals within your organization before extending an offer either verbally or in writing.
Follow your company’s guidelines in terms of salary, benefits, vacation, etc.
Although the agreement may indicate that an employee can be terminated, there needs to be a good business rationale to support any termination which could be contested in court.
Check for typos and spelling errors
The letter of intent to hire is the accumulation of several interviews with one or more candidates for a position being filled at your company or institution. All of the details are normally discussed in final interviews without making formal offers to hire. The letter summaries the terms and conditions and makes the offer formal.
The candidate may accept the offer or respond with a counteroffer, which in turn the company can decide to reject or accept. Prolonged negotiations are a turn-off for both sides. One round of negotiations should be sufficient.
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