Some Definitions
A conditional offer does exactly what it sounds like—it makes an offer of employment, based on certain requirements the candidate must fulfill in order to secure the job. This is sometimes called a “contingent offer.”A conditional offer is best compared with an unconditional offer, the de facto version. In this case, the employer simply makes the offer, including compensation and benefits details, and the only thing standing in the way is whether the candidate says “yes” or “no.” There are no further items on the checklist for the individual to complete, other than to notify the employer of their acceptance within a reasonable amount of time.
The last stage in the process is the hire—and it can follow a conditional or unconditional offer. If a conditional offer was made and the candidate accepted it and met all the requirements, then they’re hired. If an unconditional offer was made and the candidate accepted, they’re hired. Either way, the recruiter or HR department can mark that open position as “filled.”
Of course, if the candidate didn’t follow through or failed to meet the standards included in a contingent offer, or rejected the offer (whether it was conditional or unconditional), it’s back to the drawing board to identify another candidate to whom to offer the job.
Why Extend Conditional Offers?
The conditional offer is a helpful tool for employers as it allows employers to affirm their interest in the individual with the important details such as compensation covered.Conditional offers also allow employers to complete their evaluation of the candidate’s experience and credentials, most commonly through a background check. Although the Fair Credit Reporting Act (FCRA) does not require a conditional offer before submitting a candidate to a background check, there are several cities and states that do require employers extend one prior to a criminal check in particular.
Additionally, there is certain information that can only be legally requested when formal notice or a conditional job offer has been made. For example:
- Written notice (referred to in the FCRA as a “disclosure”) is required along with a signed authorization by the candidate for a background search. Many employers find compliance easier if they make offers contingent on a background search and include all the relevant notifications as part of such a package.
- Candidate acquiescence to a drug screening can be easier to secure if handled after a conditional offer has been made. As different state and local laws apply, this may be necessary for compliance purposes as well.
- Some candidates may prefer to have their references consulted once they have reason to believe they will get the job “if everything checks out,” especially if those references include supervisors at their current place of employment.
- If a medical exam is necessary, the Americans with Disabilities Act states that it can only be requested after a conditional offer is made.
Key Elements of a Conditional Offer
A conditional offer will resemble the usual offer document, but it will also list the conditions to be met. It’s best to include a timeframe in which the requisite actions should be completed, although employers can use their discretion to extend the deadlines if issues come up (and should do so if those issues arise on the employer’s side). It’s best to consult with qualified legal counsel as well when considering whether to include conditional offers as part of your hiring process, and if so, what language the letter should include.Using conditional offers and maintaining communication with candidates is all part of the same quest to make a good impression and increase hiring success. Asurint’s swift, sure background checks should be part of that process, too, and can help deliver competitive advantage in a challenging job market. Need more information? Get in touch.