Offer Letter Tips and Tricks

You’ve navigated the grueling hiring process, skimmed through hundreds of applications, and conducted dozens of interviews — now, you’ve finally decided who you want to hire!

You’re right. The hard part is over. But your work here is not done.

It’s still your job to ensure the candidate accepts your offer! The last thing you want is to have to go back to the drawing board! So follow these steps to ensure your offer is clear, concise, and persuasive enough for them to accept without hesitation!

The first step is to call the candidate and inform them over the phone that you would like to extend an offer. You should provide them with all the key points, a recap of the job description, and information on the compensation package. Give them a few moments to ask questions, and ensure you remain honest and transparent. Expressing your gratitude and excitement about them possibly joining your team is essential! End the call by giving them an acceptance deadline and saying you will email a formal offer letter.

Here’s what to include in your letter:

1. Show your stoke: Remember, you want this candidate to be thrilled about the role — the excitement starts with you. So begin the letter with a warm greeting and express a few personalized reasons why you’re excited for them to join your team.
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2. Recap the job description: Clearly define the responsibilities and expectations of the role, along with the key performance indicators that will be used to evaluate their success. Doing this will ensure that both your hiring team and the candidate are on the same page about everything you’ve discussed up to this point.
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3. Offer details about the compensation package: Provide the base salary, bonuses, equity options, and all other things that you plan on including in the package. Remember, given that Climate is a start-up industry, many job seekers are willing to take lower salaries if this is compensated in terms of equity and other incentives. Many climate companies use their climate mission as their crutch - doing this will only hurt your chances of attracting and retaining top talent. People consider real-world factors when deciding whether or not to accept a job. Make sure you’re accounting for this.
   
   When deciding how much to pay a new hire, it's essential to consider the market rate for the role and location, the candidate's experience, and their qualifications. Researching salary data from sources such as Glassdoor or Salary.com can give you a good idea of the range for the role.
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4. Highlight why you’re different: Again, the hiring process is a two-way street. It’s just as much for the candidates as it is for you. An excellent offer letter sets itself apart by selling the company! Emphasize the unique benefits of working for your company, such as a strong company culture, growth opportunities, or a flexible schedule. As a climate company, your solution is likely one of the driving considerations for the candidate — address it!
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5. Address any concerns: Mitigate any problems the candidate may have raised during the hiring process, such as work-life balance or job security. This is likely your last chance to impress the candidate; transparency is key!
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6. Include a deadline: Set a timeline for the candidate to accept the offer. Generally, giving the candidate a few days to consider the offer is good, but not so long that it delays the hiring process. This gives the candidate time to review the offer's details and make an informed decision while ensuring the hiring process continues. If they decline, you must give yourself enough time to extend another offer to your backup candidate.
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7. End on a positive note: Again, this is your last chance to impress! You should wrap up the letter by expressing your excitement for the candidate to join the team and thanking them for their interest in the position.

Even if you followed those steps to a T, it’s still possible that the candidate will come back to you with a counteroffer from their current company. Studies have shown that at least 50% of candidates get a counteroffer when they resign. If this is the case, follow these steps so that your dream candidate doesn’t become one of the 57% that accept the offer:

1. Be transparent: If the candidate returns with a counteroffer or has questions about the compensation package, your communication must be open and transparent. Understanding the candidate's perspective and finding a solution for both parties is also important. If the candidate asks for more than you can offer, consider other compensations, such as additional vacation time, flexible work arrangements, or a sign-on bonus. As always, be entirely honest — if you promise more than is feasible, it will hurt you in the long run.
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2. Pinpoint their goals: Having an open and honest conversation about their motivations and goals is critical. If the candidate is considering the counteroffer, it's essential to understand why and try to address any concerns they may have. However, suppose the candidate is using the counteroffer as leverage for a better offer from your company. In that case, you should be cautious and consider the long-term implications of hiring someone who may not be fully committed to the role.
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3. Hindsight is 20/20: It may be too late to implement these suggestions with this particular candidate, but learn from your mistakes! You should be prepared to face a counteroffer at earlier stages in the hiring process. Dive deep and know why your final-stage candidates want to leave their current roles. Are they simply looking for more money? Or does their frustration run deeper? If it’s the latter, you should be able to show how your offer would make up for all those discrepancies and explain why that would never happen at your company.

It’s perfectly acceptable to ask your candidate what would make them consider accepting a counteroffer. The more knowledge you have upfront, the better you can respond.

By addressing concerns, remaining intentional from the beginning, setting clear expectations, and being transparent, you’re setting yourself up to craft an irresistible offer. Of course, as with all things recruitment, each hire provides various obstacles, and you must think on your feet while following a structured game plan. The Climate People team is here to help if you want guidance acing your next hire!