A letter of intent to hire is a letter that is sent by an employer to a prospective employee when they want to show their willingness to employ them.
It is an important stage of the hiring process as it includes essential details of the position a company offers, namely responsibilities, salary or wages, terms of the employment, and other significant details of the employment.
This form is considered non-binding as it states only basic terms of the future work contract.
A candidate typically sends several or even numerous job applications to different companies with the intention to find a job in at least one of the considered positions. When an employer gets an application that they are interested in, a letter of intent to hire is a formal way to show their interest in the candidate. The response to the letter of intent will let an employer know whether or not the candidate is still interested in getting the job in this company or has already found one in another company. Essentially, the main goal of this free letter of intent for a job is to inform the candidate that they have to stop the active job seeking process if the conditions that the company offers fit them.
At the same time, for the candidate who wants to get hired by the company, the letter will serve as the source of guidelines that they need to follow to show their mutual desire to get a job at the company. For instance, if the letter of intent asks the candidate to come at the interview or send certain documents, they need to take these actions to show that they are interested in the job position.
Step 1 – Information about the hiring company and effective date
In the top left corner of the letter, there should be information about the company that seeks to employ a candidate. Beneath it, there should be an effective date of the letter.
Step 2 – Opening
A letter of intent to hire might be divided in separate sections devoted to each condition of the employment or have a format of a standard business letter consisting of an opening, main body, and closing.
In any case, it should start with “Dear [the name of the applicant]” and then include the statement that it is written to confirm that the company has the intention of employing the applicant in a certain position.
Step 3 – Time commitment
Then, the letter should say whether the candidate will be employed full-time or part-time.
Step 4 – Payments
Further information is the amount of wages or salary the candidate will get per year or month and the frequency of payments – every month, week, or at any other frequency.
Step 5 – Start date and responsibilities
The letter should also mention the start date and responsibilities of the prospective employee.
Step 6 – Time off
The amount of time off a person can take throughout their work year also needs to be included in a letter of intent to hire. It would be also wise to specify whether this time is paid or not.
Step 7 – Probation
If a position entails a probation period, the letter should state within what period of employment the candidate might be terminated. The letter might warn that the company is not obliged to send any prior notice of termination during this period.
Step 8 – Termination
When it comes to the termination of employment by the candidate, the letter might say that they are expected to send a prior notice to the company in case they want to stop their employment at this organization. The same should apply to the company in case they decide to terminate the employment with the candidate after the probation period.
Step 9 – Non-compete
If the company wants to include a non-compete clause in the letter, they might set the requirement for the candidate not to hire the company’s employees within a certain time after the termination of the employment. The company might also prohibit the candidate from communicating with customers of the organization or other related individuals.
Step 10 – Binding effect
It should be clear from the language in the letter whether or not the document is legally binding for the parties.
Step 11 – Signatures
The last thing to put in the letter of intent to hire is the signature and print name of the company’s representative and the signature and print name of the candidate once they receive the letter.
To: Tony McLaren
Human Resources Manager
Mega Money Company
991 Woodsman St.
Edinburg, TX 78539
April 4, 2021
From: Irvin Jones
8058 East Clinton Drive
Mesquite, TX 75149
RE: Letter of intent to hire
Dear Mr. Jones,
I am very pleased to inform you that we have narrowed down the list of applicants for the position of Sales Manager in our company and you are our best candidate. Therefore, I am informing you about our intention to hire you for this position under the following terms:
1. Terms of employment: Full-time job of Sales Manager
2. Pay: Annual salary $65,000 (sixty-five thousand dollars) with payments made every month.
3. Start date: No later than April 24, 2021
4. Responsibilities: Achieving growth and hitting sales targets set by top management of the company; designing and implementing a strategic sales plan that expands the company’s customer base and increases retention rates; tracking goals setting and the performance of sales representatives.
5. Probation period: There is a probation period of 30 days. The company leaves the right to terminate the employment for any reason without prior notice.
6. Termination: You can terminate the employment at any time for any reason by sending a notice in no less than 14 (fourteen) business days to the company.
7. Binding effect: This letter of intent was drafted solely for the purpose of creating a legally binding employment contract in the future.
8. Acceptance: If you are interested in the position we offer under the terms mentioned above, please sign this letter and bring it along with your resume, recommendation letter, and references on the start date.