Offer Letter & Compensation Setup
Purpose
Defines the process for extending a job offer, setting compensation, and confirming the candidate's acceptance before their start date. ## Who This Applies To
Josh (final approval), the Office Admin (Paylocity setup and paperwork), and the hiring manager communicating with the candidate. ## Pre-Offer Checklist
Before sending an offer letter, confirm:
- [ ] Josh has approved the hire
- [ ] Insurance verification complete — confirm the candidate can be added to Spartan's commercial auto policy (Slack: this is a mandatory pre-offer step)
- [ ] Compensation package is determined (base + commission structure + bonus eligibility)
- [ ] Start date is feasible (background check complete or in process)
## Offer Letter Contents
Every offer letter must include:
1. Job title and reporting relationship
2. Start date
3. Compensation: base pay + commission/bonus structure
4. Employment type (full-time, W-2)
5. Benefits eligibility and start date
6. At-will employment statement (Ohio is an at-will state)
7. Conditions of employment: background check, drug screen, valid driver's license (if driving company vehicle)
8. Deadline to accept the offer
Sample base for service tech (from Whale): $41,600/year ($800/week) base, monthly bonus up to $1,950 after 60 days, annual bonus potential up to $23,400. ## Offer Delivery
- Deliver verbally first — call the candidate before sending the written offer. - Confirm their excitement and address any questions verbally before paperwork. - Send the written offer letter via email or DocuSign. Do not send without a verbal conversation first. ## Compensation Negotiation
- Do not negotiate beyond the approved pay band without Josh's approval. - If the candidate has a competing offer: inform Josh before responding. Josh makes the decision. - Do not create precedents by making one-off compensation exceptions without documenting them. ## After Acceptance
1. Set start date and confirm in ServiceTitan and Paylocity. 2. Notify the team at the Monday meeting: "We have a new [role] starting [date]. "
3. Prepare Day 1 setup (see New Hire Paperwork & Onboarding Prep). 4. Assign a buddy/mentor from the team. ## No-Show New Hire Protocol
From Slack: if the new hire does not show up on Day 1, the hiring manager is the first point of contact. If the manager no longer needs the employee, remove them immediately from ServiceTitan and Paylocity to prevent ghost records. ## Important Notes
- The offer is contingent on background check and drug screen clearance. - Do not allow the new hire to start before background check results are back. - Workers comp and commercial auto coverage begin on Day 1 — confirm with carrier before the new hire starts. ## Related SOPs
- Interview Process & Question Guide — prior step
- Background Check & Drug Screening — parallel process
- New Hire Paperwork & Onboarding Prep — post-acceptance