Properly Parsing Through an Offer Letter

At Ideal Interview Co., we concern ourselves with contingency plans: making sure our clients are prepared for any eventuality and never go into anything blind. Our last blog talked about Counter-Offers, what to do if a company responded to another employer’s offer with one of their own. But what if you decide to take that offer from elsewhere? What if you’ve definitely decided to leave your current workplace? 

There are important things to remember when reading, examining, and ultimately accepting an offer, so let’s talk about what to expect from an Offer Letter and how you can expertly navigate one.

Should you have little experience with offers, know that these letters typically outline the overall terms of your employment, i.e. title, starting salary or hourly wage, whether you’re an exempt or non-exempt employee, any bonus structures, PTO and vacation days and other benefits, work day or hourly expectations, and important company policies.

Nothing in these letters is binding until both parties sign. Until that moment, it remains only an offer. Unfortunately, cold feet do sometimes occur on both sides, so if you’re bullish on an offer, make sure to dissect and sign it with expediency. And if a defined length of your employment is not expressly stipulated, it’s important to know that every U.S. state besides Montana presumes at-will employment, meaning an employer or employee can terminate the working relationship at any time. 

The most important thing we can do is actually read through the offer. Though it sounds elementary, many employees will look only at the salary, title, benefits and other financial remunerations before signing, ignoring the so-called, and sometimes literal, “fine print.”

Some specific things to keep in mind before signing your Offer Letter are as follows:

Employment contingencies like employment verification letters (which validate any details you’ve provided about previous employers), reference responses, background checks and medical screenings, confirmed academic and licensure credentials, legal screenings, and proof of your right to work in the U.S.. Certain industries may also require extensive background checks or legal screenings, but usually these are positions with high financial responsibility or influence, or fields like healthcare and academics. Thus, be truthful on your application for employment (or any other document), and have all your industry-specific credentials up-to-date, listed, and registered.

Read all dates in the Offer Letter carefully. This includes start dates as well as dates that the aforementioned contingencies must be completed by. Failure to submit these contingencies on-time might result in a rescinding of your offer.

Read and understand all company policy. For example, it’s your responsibility to scan an Offer Letter for a “Non-Compete Clause” and understand what that entails. These clauses are especially common in sales/marketing roles. Make sure you understand the length of any probationary periods, which might precede the accrual or utilization of benefits. And definitely keep a copy of the offer for your files. Maybe even print one out, just to be safe.

Sometimes, unforeseen complications arise, and you might not be able, for instance, to complete this or that contingency in a timely manner (like if a reference is on vacation and not currently reachable). This is not inherently a deal-breaker as long as you are communicative with your prospective employer. If they’ve sent you an offer, it means they want to hire you. Ask for some leeway, and you may well be granted it. Always keep your new company informed and your previous company satisfied with resignation timelines, materials, etc. We always want to remain in good-standing with both companies, future and past.

While much of this advice is manageable if you are prudent, organized, and forward-thinking, it can nevertheless be a delicate balancing act. If you’re having any trouble examining or parsing through an Offer Letter, absolutely reach out to me, Nancy. I can help! Reach me on LinkedIn, or at www.idealinterviewco.com/contact. Let’s tackle this together and get you prepared for a new opportunity!