Offer Letter Process SOP

Standard operating procedure for managing offer letter creation, compensation approval, negotiation, and candidate acceptance.

Steps

• Verify the hiring authorization and candidate selection
  The recruiter verifies that the requisition is open, the final candidate selection is documented, and any required background or reference checks are complete or conditionally approved per policy. The recruiter records any open conditions that must be included in the offer process.
• Draft the offer letter using the approved template
  The recruiter enters the candidate's name, job title, department, work location, start date, reporting manager, compensation details, and any conditional terms into the approved offer letter template. The recruiter checks that all fields match the approved requisition and compensation range.
• Submit compensation details for approval
  The recruiter submits base pay, bonus, equity, sign-on bonus, relocation, and any special terms for review against the approved compensation range and approval matrix. The recruiter flags any deviation from standard policy for manager or compensation team review.
• Review and resolve compensation deviations
  The compensation analyst or HR manager reviews any deviation from the approved range, internal equity guidance, or sign-on policy. If the deviation is acceptable, the approver documents the rationale and approval. If not, the approver escalates the exception to the designated decision maker.
• Issue the offer letter to the candidate
  The recruiter sends the approved offer letter to the candidate using the authorized delivery method. The recruiter confirms the version sent matches the approved terms and records the send date and time in the candidate record.
• Escalate the compensation exception for approval
  The recruiter or HR manager escalates the exception to the designated approver with the proposed terms, business justification, and any supporting market or equity data. The approver records the decision, conditions, or required revisions before the offer can be issued.
• Manage candidate negotiation requests
  The recruiter documents any candidate counteroffer, requested start date change, relocation request, or other negotiation item. The recruiter compares the request against policy and the approved compensation range, then routes any change that affects approved terms through the required approval path.
• Record candidate acceptance or decline
  The recruiter confirms whether the candidate accepted, declined, or requested additional time. If accepted, the recruiter records the acceptance date, signed offer, and any conditions. If declined, the recruiter records the reason when provided and closes the requisition according to process.