What is Offer Letter ?
An offer letter is a formal written document that extends a job opportunity to a candidate who has successfully completed the interview and selection process. It serves as a communication to inform the candidate about their employment details. The offer letter typically includes:
- Job Title
- Joining Date
- Salary or Compensation Package
- Reporting Manager Details
- Roles and Responsibilities
- Benefits and Perks
Once issued, the candidate must accept the offer, either verbally or in writing, to move forward in the hiring process. This process ensures mutual agreement and acts as a formal acknowledgment of the job offer.
How HR teams use this term
HR teams usually use Offer Letter when they write policies, explain employee communication, review payroll or leave records, or keep employee data clean in an HRMS.