A letter of intent to hire is a formal letter sent by an employer to a candidate they consider recruiting for a specific position that an applicant applied for in the company, business, or organization.
The letter of intent informs the applicant that they have a chance at getting the vacant position.
Free Templates
Purposes of Sending a Letter of Intent to Hire
Employers are tasked with reviewing hundreds of applications when searching for a suitable candidate to occupy a vacant position. Once employers have identified candidates they are interested in, they should send a letter of intent. The letter of intent will serve the following purposes:
- Seek to find out if a candidate is still interested in the position or if they have already found a job.
- The letter of intent will inform candidates to stop the active job search as they are being considered for the position.
- It will provide candidates with guidelines to secure the position, e.g., attend an interview, send specific documentation, provide references for verification of the candidate’s credentials, etc.
- It will also provide candidates with other vital details about the position being offered, e.g., the employer’s monthly salary, the candidate’s delegated duties and responsibilities, the start date, and other terms and conditions associated with the job.
A letter of intent acts as an almost informal commitment between the employer and the candidate. It can also be considered a crucial first step towards an employment agreement because it helps ensure the employer conveys detailed information concerning a candidate’s employment terms.
Writing a Letter of Intent
When writing a letter of intent, employers should ensure that they provide all the relevant information concerning the position. It is therefore critical that the employer ensures the letter of intent is well composed. The following is a step-by-step guide on how to write a letter of intent:
Sender’s information
Employers should start the letter of intent by providing information regarding them and the company. The information provided must include the employer’s name, name, and address of the company. The sender’s information helps the applicant identify who is sending the letter. This is important because applicants often send job applications to multiple companies.
Date
Secondly, the employer must indicate the effective date on the letter of intent. The date is a record of the employer’s correspondence to the candidate. The data communicates to the recipients when the employer wrote the letter to give them time to respond to the employer.
Recipient’s information
Thirdly the employer must indicate the applicant’s information. This information includes the applicant’s name and contact information. By indicating the recipient’s information, the employer identifies who they are addressing and nominating for the specified position.
Body of letter
Next, the letter of intent must contain certain key elements to communicate its message to the candidate effectively.
These fundamental elements include:
The parties
Employers should start the body of the letter by mentioning the names of anyone involved in the letter, which includes their name and that of the candidate. Stating the parties involved ensures clarity is established as to whom the letter of intent is meant for.
Commitment
The employer should then state whether the candidate’s job will be full-time or part-time. This will help the employer declare the commitment level expectations of the job for the candidate to decide if it suits their lifestyle. For example, candidates with kids may opt to work part-time to enable them to designate time to spend with their children. By declaring their expectations, employers could avoid a situation where employees may complaining about being overworked.
Pay
The employer should provide further information indicating the salary and benefits the applicant will receive for the position. The employer should indicate the amount in both numbers and words.
Payment period
The employer should also mention the frequency of salary payments to the candidate.
For example:
A company’s payment durations may be weekly, monthly, or yearly.
Starting date
The employer should also ensure that the letter of intent mentions the specific date of commencement of the applicant’s employment should he/she be hired for the job.
Responsibilities
The letter of intent should also outline all the duties and responsibilities to the applicant that occupies the position;
For example:
As a graphic designer, the applicant will be responsible for developing content, designing graphics and layouts for product illustration, etc.
Again, this helps the employer avoid any future inconveniences caused by a lack of clarity.
Time off
The employer must make sure that the letter of intent indicates the conditions under which the potential employee will be allowed time off and the amount of time the candidate can take. Employers must also mention whether the time off will be paid or unpaid to ensure that candidates agree to the set term.
Probation period
A probation period is a trial period that new employees serve to enable the employer to get acquainted with them. The probation period enables the employer to decide whether to offer the new employee a regular or permanent position. If an employer finds the new employee’s work unsatisfactory, he/she can terminate the employment with or without notice, depending on company policy. The letter of intent must indicate the time frame of the probation period.
Termination
The employer must ensure that the letter of intent contains a termination clause in line with the company policy. The termination clause must state any employee’s procedural expectations that intend to terminate his/her employment and procedure of the company when or if terminating the employee, such as a notice period. The information should also include situations that may lead to employment termination.
Non-compete
The employer must also ensure that the letter of intent contains the non-compete clause if any. A non-compete clause prohibits a company’s former employee from working for its competitors for a given period. This clause acts as a temporary injunction preventing former employees from sharing confidential information or trade secrets acquired during their tenure in a company. The letter of intent must indicate the time frame of the effectiveness of the non-compete policy.
Binding effect
The letter of intent must clearly state whether it is binding or non-binding. The employer must use straightforward language to ensure that this is communicated to the applicant.
Additional terms and conditions
The employer must ascertain that the letter of intent mentions any other terms and conditions, such as a specific dress code for all company employees that the applicant must know before signing the document.
Company information
Employers should follow up by ensuring, the letter of intent contains their signature, printed name, and date. This certifies that the employer has provided all the necessary information to the applicant.
Sender’s signature
Finally, the letter of intent should be concluded with the sender’s signature, printed name, and date. The sender’s signature verifies that he/she wrote or acknowledges and agrees with the letter’s contents.
Letter of Intent to Hire Template
Following are some templates for your convenience:
FROM [Employer’s details]
[EMPLOYER’S NAME]
[EMPLOYER’S ADDRESS]
[CITY, STATE, ZIP CODE]
[DATE]
Dear: [candidate’s name],
I. The Parties. This letter is confirmation by [employer’s name] immediately referred to as ‘Principle or Employer’ that [company name] [company address] has an intent to hire [candidate’s name] immediately referred to as ‘The candidate or candidate’ as [job title]and to verify the extensive terms of employment.
II. Time Commitment. The candidate’s work shall be considered [part time, full time]
III. Salary. The candidate’s salary shall amount to [amount per year]
IV. Payment method. The candidate’s payment shall be made every [duration of payment, e.g., weekly, monthly, yearly]
V. Starting Date. The candidate’s employment shall commence no later than [start date]
VI. Responsibilities. The candidate shall be in charge of [mention the candidate’s duties and responsibilities]
VII. Leave from work. A candidate shall be permitted to take a maximum leave of [number of days] per year. This leave shall be [paid, unpaid].
VIII. Trial Period. The candidate subsequently agrees they may be terminated within the first [number of days]. After that, in the principle’s absolute discretion, the candidate’s employment may be terminated for any reason without cause or notice.
IX. Termination Clause. The candidate can terminate at any time provided notice of no less than [number of days] is issued to the employer.
X. Non-compete clause. If the candidate/applicant is terminated for any reason, he/she shall be prohibited from [ mention everything the candidate will be prohibited from doing]
XI. Binding effect. This letter shall be considered [binding or non-binding]
XII. Additional Terms and Conditions. [ Include any other additional terms and conditions, if any]
Company
Principle’s Signature: __________
Printed Name: __________
Date: __________
Candidate
Candidate Signature: __________
Printed name: __________
Date: __________
Letter of Intent to Hire Sample
James Keen
991Woodman St
Edinburg, TX 78539
24th June 2020
Dear: Allan,
I. This letter is confirmation by James Keen immediately referred to as ‘The principle or Employer’ that TCML, mailing address of TX 991 Woodsman St, intends to hire Allan Michaels immediately referred to as “The candidate or candidate’ as a Sales and Marketing Manager and verify the extensive terms of employment.
II. Time Commitment. The candidate’s work shall be considered full-time.
III. Salary. The candidate’s salary shall amount to $ 60,407per year
IV. Payment method. The candidate’s payment shall be made every end month
V. Starting Date. The candidate’s employment shall commence no later than 7th August 2020
VI. Responsibilities. The candidate shall be charged with creating sales reports and overseeing the sales and marketing progress
VII. Leave from work. A candidate shall be permitted to take a maximum leave of 20 days per year. This leave shall be paid.
VIII. Trial Period. The candidate subsequently agrees they may be terminated within the first 30 days. After that, in the principle’s absolute discretion, the candidate’s employment may be terminated for any reason without cause or notice.
IX. Termination Clause. The candidate can terminate employment provided notice of no less than 60 days is issued to the employer.
The employer may terminate a candidate’s employment for any reason with a 30-day notice issued to the employee.
X. Non-compete clause. The parties agree that should the candidate be terminated for any reason, he/she shall be prohibited from working for direct competitors or revealing any trade secrets for five months following termination
XI. Binding effect. This letter shall be considered or non-binding.
Company
Principle’s Signature: __________
Printed Name: __________
24th June 2020
Candidate
Candidate Signature: __________
Printed name: __________
Date: __________
Frequently Answered Questions
A letter of intent to hire and an offer letter may be used by companies interchangeably. However, the decision of whether to send an offer letter or a letter of intent to hire depends on the legal limitations concerning when an employer can send an offer letter or if the employer has conclusively decided on all the details concerning the vacant position.
An employer’s capability to de-commit from a signed letter of intent depends on whether the letter of intent is binding or non-binding. If the language in the letter indicates that it is non-binding, then one can de-commit after signing; however, if the language states otherwise, one cannot de-commit after signing.
A letter of intent is often considered a non-binding offer. However, it does become binding once an employment contract between an employer and an applicant is signed.
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