D&J Recruiter's Notebook


What to Avoid in Job Offer Letters

June 30th, 2011

Once you’ve made your way through the mounds of resumes, completed multiple rounds of interviews, and performed the requisite background checks, the time has come to make the hire. While the actual offer should be made orally, the general consensus is that it should be followed with a formal offer letter laying out the terms of employment.

A proper offer letter outlines information regarding the employment terms, including the starting date, working hours, responsibilities of the position, agreed-upon salary, how and when the employee will be paid, what benefits they will receive, and so forth. Since job offer letters are legally binding documents, they must be drafted very carefully to avoid making any unintended promises. Otherwise, you could be locked into an “implied contract” with the new employee.

Here are a few tips to follow to make sure your job offer letters don’t get you in trouble:

  • Avoid putting a formal job offer in writing until you’ve completed all your due diligence, including a thorough background check. You don’t want to uncover a felony conviction after the fact and then have to withdraw the offer.
  • Emphasize that the person is being hired “at will” – in other words, the employment relationship can be terminated at any time for any legitimate reason.
  • Avoid making statements implying job security. You can safely include the new hire’s starting date, but don’t make any references to length of employment. And whatever you do, don’t suggest that the employee has a long career at your company.
  • Avoid stating pay in terms of annual salary. Such a statement could be construed as a commitment to a year’s employment. Indicate how much the employee will receive each pay period instead.
  • Don’t send the letter until you have consulted with human resources and/or your company’s legal department to make sure you haven’t written anything that will get you or your employer in hot water later.
  • Opinions differ with regard to whether the employer should require the new hire to sign and return a copy of the letter as a formal acceptance of employment. Again, ask your HR or legal department to determine what is right for your company.

When carefully written, job offer letters are a key component of the hiring process. They can head off potential conflicts by clearly stating the terms of employment upfront. Simply follow these guidelines to avoid the common pitfalls related to offer letters and you will avoid any legal ramifications.

Is Your Salary History Hurting Your Chances?

June 17th, 2011

It’s a touchy subject, but one that inevitably comes up during a job hunt. What was your previous salary? Potential employers request this information as a means of screening applicants. However, job hunters are often hesitant to divulge their salary history out of fear it will harm their chances of getting the job – or getting a halfway decent offer.

According to a survey by the Career Masters Institute, 90 percent of human resource and hiring managers say they wouldn’t eliminate applicants simply because they neglected to divulge their salary history. Still, most job search experts advise applicants to withhold such information.

Admittedly, concerns about sharing past salaries are not without merit. If your previous salary was much higher than what the employer is prepared to pay, you may be excluded from the running altogether. You won’t even have the opportunity to decide if you’re willing to take a hit. The employer will simply assume you either won’t be willing to accept less money or you would be eager to jump ship as soon as a better offer arises. That can be particularly problematic in today’s economy when some people would be more than happy to receive any job offer, even if it means a slight dip in pay.

On the other hand, if your history is substantially lower than what the potential employer has budgeted, they may offer something commensurate with your most recent salary. You may still get the job, but you won’t get paid as much as if the employer had not known your salary history.

Divulging your salary history may also strip you of the power to negotiate since a potential employer is already aware of how much you have been paid in the past. No one wants to be in a weak bargaining position when their career is at stake.

In the end, whether or not to divulge your salary history is a judgment call. You could ignore the request, but that may eliminate you from the running prematurely. If you decide to honor the request, make sure you reflect your “total compensation” by providing details of benefits, such as 401(k), insurance, bonuses, and commissions. And by all means, avoid the temptation to inflate your previous salaries. A potential employer can easily find out how much previous employers paid you. If you lie about it, you won’t have to worry about making time for new hire orientation, that’s for sure!

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