How to Write a Job Offer Letter
That Closes the Deal
Most offer letters are either too cold and corporate or dangerously vague. Both lose candidates. Here’s how to write an offer that conveys excitement, covers everything legally, and gets a yes — with prompts for every scenario including counteroffers.
- Why offer letters lose candidates
- What every offer letter must include
- The warm offer — tone and framing
- How to present equity without confusion
- Handling the counteroffer conversation
- What to do when they ask for more time
- The verbal offer call — before anything is written
Why Offer Letters Lose Candidates
Candidates drop out at the offer stage for three reasons: the compensation is below expectations, the letter feels impersonal and bureaucratic, or the process is slow enough that another offer arrives first.
Most founders focus on the first and ignore the second and third. But a competitive offer delivered coldly — with a standard template and a 5-business-day deadline — can lose someone who was genuinely excited about the role. The offer is the last impression before they join. Make it count.
A candidate who receives two comparable offers will almost always choose the company where they felt most wanted. The offer letter is one of the few moments where you can show that directly.
What Every Offer Letter Must Include
Non-negotiable elements:
Role title and start date — specific, not “TBD.” If start date is flexible, say “on or around [date], to be confirmed.”
Compensation — base salary, payment frequency, and any variable comp (commission, bonus). Be specific about OTE if it’s a sales role.
Equity — number of options or shares, type (ISO/NSO), strike price, vesting schedule, cliff. Never leave equity vague in an offer letter.
Benefits — health coverage, vacation policy, remote work terms, any allowances.
Employment type and at-will status — full-time, contractor, or part-time. Note at-will employment if in your jurisdiction.
Contingencies — background check, reference check, right to work verification.
Offer expiry — 3-5 business days is standard. Giving 2 weeks signals you’re not that confident. Giving 1 day signals desperation or disrespect.
The Warm Offer — Tone and Framing
The first paragraph of your offer letter sets the tone for the entire onboarding experience. Most companies waste it on legal boilerplate. Use it to tell the candidate why you’re excited to have them specifically.
Not: “We are pleased to offer you the position of…” That’s a form letter.
Instead: “After spending time with you over the last few weeks, I’m genuinely excited to offer you this role. The way you [specific thing from interview] is exactly what we need right now, and I think you’re going to do some of the best work of your career here.”
One specific, genuine sentence does more than three paragraphs of corporate enthusiasm.
“Write a job offer letter for [role] at my [stage] startup. The candidate is [name]. Key details: base salary [amount], equity [options/shares, vesting schedule, strike price], start date [date], benefits [list]. One thing I genuinely liked about them in interviews: [specific observation]. The letter should open warmly with that observation, cover all the terms clearly, and close with a specific invitation to ask questions or discuss. Professional but human — not a template. Include an offer expiry of [X] business days.”
How to Present Equity Without Confusion
Equity confuses most candidates — not because they’re unsophisticated, but because startups explain it badly. A confused candidate doesn’t sign, they stall.
In the offer letter itself: state the number of options, the vesting schedule (4 years, 1-year cliff is standard), the strike price, and the current preferred share price from your last round. Don’t make them calculate the percentage themselves.
In a separate document or call: explain what this equity could be worth in different exit scenarios. “At our current valuation of $X, your options are worth approximately $Y if fully vested. At a 3x exit, they’d be worth approximately $Z.” This is not a guarantee — make that clear — but it gives them a framework to evaluate the offer.
“I need to explain the equity portion of a job offer to a candidate who is not technically sophisticated about startup equity. The details: [options/shares, vesting, cliff, strike price, most recent round valuation, post-money cap table percentage]. Write a clear, honest explanation covering: what the options are, when they vest, what they could be worth in a reasonable exit scenario, and what happens if they leave before fully vested. Honest about the risk and uncertainty, but not so cautious it sounds worthless.”
Handling the Counteroffer Conversation
When a candidate comes back with a counter, the instinct is either to immediately agree or to push back. Neither is the right default.
First: understand what they’re actually asking for and why. A counter on salary might really be a concern about equity. A counter on start date might be about a project they want to finish. Ask: “Help me understand what’s most important to you — I want to make sure we get this right.”
Second: if you can close the gap, close it. If you can’t move on salary, offer something else — an extra week of vacation, an earlier equity refresh review, a signing bonus paid back if they leave in the first 12 months. Creativity matters more than the specific dollar amount.
“A candidate has countered our offer. Our offer was: [your offer]. Their counter is: [their counter and any explanation they gave]. Our constraints: [what you can and can’t move on]. Write a response that: acknowledges their counter specifically, explains honestly what we can and can’t do and why, proposes the best alternative we can offer if we can’t meet their ask, and keeps them genuinely excited about joining. Not defensive, not corporate. Warm and direct.”
What to Do When They Ask for More Time
A candidate asking for more time to decide is usually either waiting on another offer, working through a major life decision, or not yet sure. Asking which is reasonable — “Is there anything specific holding you back that I can help address?” — often surfaces the real issue.
If they’re waiting on another offer: ask them to tell you before they accept it. “If you get an offer from somewhere else that you’re considering, I’d love the chance to talk before you decide.” Most candidates will honor this.
Extending the deadline is usually fine once, for 2-3 days. After that, you need to make a judgment call about whether this is the right person — someone deeply uncertain about joining before they’ve even started is telling you something.
The Verbal Offer Call — Before Anything Is Written
Never send an offer letter cold. Always call first.
A verbal offer call has one job: make the candidate feel genuinely wanted and gauge their excitement before the formal letter goes out. It takes 10 minutes and tells you everything — if they’re flat or immediately start negotiating before you’ve finished the sentence, you learn something important before you’ve invested in paperwork.
On the call: share the key numbers verbally, pause for their reaction, ask how it sounds. Their first response tells you whether the offer will land or not.
“I’m about to make a verbal offer to [candidate name] for the [role] position. The key terms are: salary [X], equity [Y], start date [Z]. Help me prepare: (1) How to open the call warmly and specifically before getting to numbers, (2) How to present the compensation package in a way that highlights its full value, (3) What to listen for in their reaction that tells me whether the offer will be accepted, (4) How to handle it if they immediately start negotiating before I’ve finished presenting.”
Get 50 more prompts for hiring, offer management, and people ops — free.