Welcome to the sixth and final segment of our Retained Search blog series! Today, Scion Executive Search explores an often-overlooked consideration for a seamless executive search—creating the offer of employment for your incoming nonprofit executive.

With a remarkable 17-year legacy, Scion Executive Search (SES) stands as a trusted leader in retained search recruiting. Our purposeful hires transcend conventional talent acquisition, propelling organizations forward in today’s competitive landscape. We embody resourcefulness, agility, and a commitment to excellence, ensuring candidates are uniquely suited for each role. With diverse expertise and esteemed certifications, including CDSP, CDR, CSC, PRC, and SHRM-SCP, we serve national clients across multiple industries, leveraging our vast network of 14 million candidates for unparalleled results. Learn more here.

Securing exceptional executive talent is pivotal for nonprofit organizations striving to achieve success and maintain a competitive edge. As the demand for remarkable leadership continues to rise, many organizations are turning to executive recruiting firms to source and engage the best candidates for their key positions. Before entrusting the hiring process entirely to a recruiting partner, however, it is critical that organizations be well-versed in the art of crafting an effective offer letter that entices potential executives, outlines conditions of employment, and protects the interests of the company.

In this blog, we will explore the fundamental components that make up an offer letter specifically tailored for executive roles. We aim to empower organizations to take a proactive role in the hiring process while collaborating effectively with executive recruiting firms.

The Importance of a Well-Crafted Employment Offer Letter

An offer letter represents a crucial bridge between an organization and a promising executive candidate. Beyond simply detailing employment terms, a well-structured offer letter can set the tone for a strong and lasting employer-employee relationship. A compelling offer letter demonstrates the company’s commitment to the candidate, communicates the unique opportunities the role presents, and outlines the employee benefits the executive can expect. Striking this balance is not only essential for attracting top talent but also for fostering a positive and transparent hiring experience.

When in Doubt, Refer to Your Legal Advisor

While we provide insights and recommendations in this blog, it is crucial to emphasize the significance of seeking guidance from your legal advisor before extending any offer of employment. Employment laws and regulations can vary significantly, and partnering with a legal professional will ensure that your offer letter complies with all applicable laws and protects your organization’s interests.

Understanding The General Components

Familiarizing yourself with the following key components will assist you in collaborating efficiently with your chosen executive recruiting firm and serve as a foundation for ensuring your employment offer letters are professional, thorough, and compelling. A formal touch can be added by placing this legal document on your company’s official letterhead. This not only enhances the overall presentation but also reinforces the authenticity of the offer. Remember: The terms of employment and the way they are articulated can significantly influence a candidate’s perception of the role and your organization, so it’s crucial to get them right. The components and order in which these items are organized may vary; consult your legal advisor or counselor if any questions or concerns arise.

Offer Date: Include the date the offer of employment is to be extended to the candidate.

Position Title and Description: Clearly state the title of the position and a brief description of the role the candidate is being offered.

Salary and Compensation: Specify the annual base salary, along with any other forms of compensation, such as bonuses, incentives, or stock options, if applicable. Also, mention the frequency of pay, whether that is on a monthly, bi-weekly, or weekly basis.

Employment Status: Indicate whether the position is worked on a full-time or part-time basis, or on a temporary or permanent basis. The employment letter should also specify if the role is exempt or non-exempt.

Employee Benefit Plan and Additional Benefits: Outline the compensation package the candidate is entitled to, which may include health, dental, and vision insurance coverage; disability; life insurance; retirement plans; vacation days, sick leave, and fixed or floating holidays; 401(k) plans; reimbursement plans; and any other perks or benefits offered by the company.

Starting Date: Clearly state the date the candidate is expected to start working.

Employment Conditions: Mention any specific conditions the candidate must meet before or during employment, such as background checks, reference checks, and drug tests.

Reporting Structure: Clarify the candidate’s reporting line and the position(s) they will be reporting to.

Workplace Location and Hours: Depending on the nature of the position, this section of the offer letter outlines the work location and work hours expected from the candidate.

For roles that require the candidate to be present on-site, the offer letter will specify the physical location where the candidate will be expected to work.

In the case of hybrid roles—where the candidate has the flexibility to work both on-site and remotely—the offer letter details the number of days that must be spent in the office versus working remotely. This provides clarity on the work arrangement and ensures a balance between in-person collaboration and remote productivity.

If the position allows for full remote work, the offer letter may list any constraints that apply, such as a requirement to work from certain core states or geographic regions.

In all cases, transparently conveying the work location and expected hours fosters clear communication between the organization and the candidate, setting the foundation for a successful and productive working relationship.

Probationary Period: If applicable, indicate the duration of the probationary period, during which the candidate’s performance will be evaluated before confirming their permanent employment.

Confidentiality and Intellectual Property: Mention any legally binding agreements related to the protection of the company’s confidential information or intellectual property that the candidate is required to sign. These may include binding contracts such as non-disclosure agreements or non-compete agreements.

At-Will Employment Agreement: State whether the employment is “at-will,” meaning that either the employer or the employee can terminate the employment relationship at any time, with or without cause.

Contact Information: Provide the contact details of the hiring manager or HR representative whom the candidate can reach out to with questions or with an acceptance of the offer.

Acceptance Deadline: Set a reasonable deadline for the candidate to respond and accept or decline the job offer.

Candidate Signature and Date: Include a section for the candidate to sign and date the offer letter to acknowledge their acceptance of the terms and conditions.

Don’t Forget to Proofread!

Before finalizing the offer of employment, carefully review the document to ensure it aligns with the discussions held during the hiring process. Verify that the offered salary, benefits, position title, and other key details are accurate and in line with the organization’s policies. Lastly, consult your legal counsel to ensure the offer letter complies with all applicable laws and protects the organization’s interests.

Crafting an offer letter is a critical process that requires careful consideration and attention to detail. By empowering organizations with knowledge about offer letter components, we aim to facilitate successful collaborations with executive recruiting firms while ensuring the best possible outcomes for the organization and the candidate.

This is the last installment in this series. As you prepare to engage an executive search firm, remember that the true value lies in the partnership. Leveraging the expertise of a reputable search firm allows you to tap into an extensive network, access a diverse pool of talent, and benefit from the insights and market knowledge of seasoned professionals. With a strategic vision, a comprehensive plan, and the right partner, your organization is poised to embark on a journey of success like never before.

About the Author

Jennifer Warren, Technical Writer (she/her/hers) 

Jennifer Warren is an enthusiastic and meticulous technical writer at Scion Executive Search (SES). Committed to excellence and constant growth, she draws on her strong editorial and organizational skills to expedite executive searches for nonprofits and community-focused organizations. Those who work with Jennifer praise her for her initiative, strong language skills, transparent communication, and enthusiasm to support her clients and colleagues. 

Jennifer has spent most of her career in the publishing industry. Before joining SES, she worked at a crafts book publisher for seven years, first as a production editor, preparing manuscripts for print, and then as an associate editor, curating content for new publications. Jennifer has also worked in the nonprofit sector as a grant writer, preparing and submitting applications for program funding. She graduated Summa Cum Laude from California State University East Bay with a Bachelor of Arts in English. 

Jennifer holds a strong appreciation for work that improves the lives and circumstances of others, especially in the areas of mental health; child welfare; and diversity, equity, and inclusion. She has volunteered in California for BRIDGEGOOD (formerly Oakland Digital Arts & Literacy Center) and the Food Bank of Contra Costa & Solano.