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4 min read

Conditional Employment Offer: Key Components and Essential Guidelines

Conditional Employment Offer: Key Components and Essential Guidelines

Key Takeaways

  • A conditional employment offer can help a firm to grab a prospect’s interest quickly.
  • Potential employees need to meet a deadline to fulfill the conditions to be hired.
  • A conditional offer may be necessary to legally perform a background check.
  • Conditional offers can be rescinded at any time.

Recruiting the very best talent for your company requires time, investment, and expertise, as well as a bit of strategic thinking. After all, your competitors are also trying to bring aboard the best and are offering similar benefits packages and working conditions. Often, it’s simply a race to see who can hire candidates faster. On average, it takes 47.5 days to fill a position, and one tool many firms are using to speed up the process is the conditional employment offer. Large enterprises like United Airways and governmental organizations like the New Haven Police Department also use conditional offers to recruit lots of workers when they’re facing serious staff shortages.

So what is a conditional offer of employment, what are their benefits, and how can you put one together? That’s what we’re about to find out.

What is a Conditional Employment Offer

A conditional offer of employment is a job offer but with some criteria that the individual must meet before employment can begin. In other words, they can have the job if…

The criteria that most conditional job offers stipulate usually include:

  • Passing a criminal record background check.
  • Proving educational attainment.
  • Passing a medical exam or drug test.
  • Providing adequate references.
  • Proving eligibility to work in a jurisdiction .
  • Passing a skills/aptitude test.

Traditionally, most of these criteria would be assessed before making an employment offer, so the fact that they’re being assessed afterward tells us something. This shows that a conditional employment offer can be made quickly when there’s a need to hurry and reach out to candidates that your firm doesn’t want to let slip away. Most conditional offers also have set time limits within which the candidate must fulfill the conditions, or the offer will be automatically withdrawn.

Conditional vs. Unconditional

How are conditional offers of employment different from unconditional job offers? Most workers expect that when they apply for a job, they’ll either get it or they won’t. If they get a job offer, that’s proof they’ve won the position, isn’t it?

This is not necessarily the case if it’s a conditional job offer. While this offer lets them know that the company thinks they’re the right person for the job, they essentially still need to prove it before they have that position sewn up. 

Unconditional offers are legally binding once they are accepted but conditional offers are not. They can be rescinded for any non-discriminatory reason at any time. Conditional offers can also be changed, updated, or renegotiated at any time. Unconditional offers can only be accepted or declined as-is. Changes would require negotiations and a new offer being made. 

Background and Reference Checks

Why Companies Issue Conditional Offers of Employment

Different companies will extend conditional employment offers for different reasons. Most of these reasons are strategic, though some are more ethical than others.

To Speed Up Recruiting

If your company ends up with the application of a top-caliber applicant who stands out far above all others, you might hurry to make a conditional offer to get their attention and essentially reserve them for the position. If they meet your conditions, this can save lots of time by cutting the whole process short.

To Reduce Risk

It takes a lot of effort to ensure that you have a candidate who’ll be a perfect fit for your organization. Giving your selected candidate a conditional offer gives you extra time to make sure they’re the right choice and that they won’t pose any security risks for your firm.

To Make Requests for Information

In many jurisdictions, information like a criminal history check or other background checks cannot be requested until a conditional job offer has been put forward. This is an extra step that protects both the hiring company and the employee’s right to privacy.

To Get the Best Choice of Workers 

Some firms will give out conditional offers to multiple candidates for the same position. They do this intentionally, knowing that they can only hire one, but to lead on multiple candidates. Quick conditional offers buy them time to make their decisions but hurt the employees who are strung along in this process and ultimately not hired.

What Happens If You Fail a Drug Test

Issuing a Conditional Offer of Employment

A conditional offer isn’t immediately legally binding, but you should only give one to an employee you truly wish to hire in good faith. A conditional job offer will include all the same details as an unconditional offer, including:

  • Position Offered
  • Compensation 
  • Work Start Date
  • Termination Conditions
  • Relevant Company Details

However, a conditional employment offer will also need to include these key components:

  • Clearly Stated Conditions to be Fulfilled
  • Due Date for Fulfilling the Conditions
  • Dates and Durations of Trial Periods, if applicable

 When the offer is made, ensure that the employee signs it to acknowledge their understanding. This can prevent the possibility of legal issues in the future.

Conditional Offers of Employment as Strategic Tools

To move fast and let talent know you want them before the competition snaps them up, a conditional job offer might be your best choice. This document expresses your interest and buys you time to check all the details and limit risk to your organization. Hopefully, the employee will meet your conditions and accept your offer as a new hire.

Frequently Asked Questions

The offer can be retracted at any time so long as the potential hire hasn’t fulfilled your conditions and signed a full contract.

Yes, this is possible because the offers can be withdrawn at any time. However, this isn’t an ethical hiring practice and will likely give your company a bad name.

Kimberley is a bona fide compliance and finance expert, based in Melbourne, Australia. With separate Masters degrees in both Financial Planning and Fintech, and a professional background in finance and quality control, Kimberley is the RemotePad authority on all matters regulatory.

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