What is an offer letter?

An offer letter is a formal document that outlines the terms of employment provided to a selected candidate. This document serves several critical functions: it details the job title, duties, start date, salary, benefits, and other essential components of the employment agreement. The offer letter typically serves as the official communication that solidifies the employer's intent to hire the candidate and conveys important information that the candidate needs to make an informed decision about accepting the position.

The clarity and professionalism of an offer letter help establish a positive first impression and set the foundation for the employment relationship. By clearly defining the terms of employment, the offer letter helps to ensure that both parties have mutual understanding and agreement, which can help prevent future misunderstandings.

In contrast, a verbal agreement does not provide the same level of formal documentation and can lead to ambiguity. A document confirming the acceptance of job offers serves a different purpose, as it is created after the candidate accepts the offer, not as part of the offer itself. Internal communications about recruitment status relate more to the hiring process and do not directly pertain to the terms of employment for the selected candidate.