5 Essential Elements to Include in a Powerful Financial Cover Letter

Are you familiar with the ideal format for a cover letter in 2021? Discover what elements a winning cover letter should contain to increase your chances of landing a remote job.

When applying for remote positions, many candidates feel overwhelmed by the prospect of creating a cover letter in addition to refining their resume and completing online applications.

However, if you’re simply reiterating the information already present in your resume and other documents, you’re missing out on an opportunity to make a strong impression. A cover letter serves as your initial chance to impress hiring teams and capture their interest, potentially leading them to read your resume. Unfortunately, many resumes go unread despite the effort put into creating them.

In this article, we will outline the essential components of a successful cover letter and provide an example to guide you in crafting your own.

A cover letter, also known as an application letter, is a concise summary of your interest in a position and why you are the best candidate for the job.

Consider your cover letter as the face of your job application, as it is typically submitted alongside your resume, CV, or online application.

It is important to understand the distinct purposes of each of these documents:

• Your cover letter introduces you to hiring teams and allows you to showcase your skills and personality, making a memorable first impression.
• Your resume highlights your qualifications, certifications, and career experience, providing evidence to support the claims made in your cover letter and demonstrating that you are the right fit for the role.
• A curriculum vitae (CV) focuses more on your academic background, coursework, and other relevant information, particularly if you are a student or recent graduate with limited work experience.

Consider this: hiring teams receive an average of 250 applications for each job posting. To manage this influx, 90% of employers utilize applicant tracking systems (ATS) to filter out qualified candidates from the rest.

So, how do they make this decision?

Typically, they start by reviewing your cover letter.

• Showcase your strengths and qualifications
• Explain why you would be a valuable addition to the employer’s team
• Stand out among other qualified candidates vying for the same position
• Establish a connection with the hiring team
• Bridge the gap between your experience and the employer’s requirements
• Demonstrate your excellent written communication skills
• Express genuine enthusiasm for the role and the company, rather than simply applying to any job with a matching title

There are five key components that should be included in a cover letter to make it compelling and capture the attention of hiring teams. Ensure that your cover letters contain:

The cover letter header, located at the top of the document, includes your contact information as well as that of the hiring manager. This ensures that your letter reaches the appropriate person and allows them to identify you.

• Your full name and (optional) gender pronouns 
• Your address (including just the state, country, zip code, or time zone is acceptable since your resume should contain your full address)
• Your phone number, including the country code
• A professional email address (e.g., first name.last name@email provider.com)
• Links to professional websites or social media accounts, such as LinkedIn, GitHub (for developers), or your online portfolio/website
• Your current job title
• A personal branding statement, which is a concise sentence summarizing your unique skills, passions, or areas of expertise

The second part of the cover letter header focuses on addressing the recipient.

Avoid using generic greetings such as “To Whom It May Concern” or “Dear Sir or Madam.” These demonstrate a lack of effort and can make your application appear generic. It is now easier than ever to find the name of the person who will be reviewing your application. Conduct some research on LinkedIn or check the company’s team pages on their website to identify the HR Manager or relevant department heads. Alternatively, you can send a quick email or message to ask for this information.

• Full name of the hiring manager, department head, or individual responsible for reviewing your application
• Company address
• Company phone number
• Email address of the hiring manager (or the designated recipient for applications)

This step demonstrates your interest in the company and your willingness to conduct thorough research. Hiring managers appreciate candidates who make an effort to establish a personal connection with their team.

Capture the reader’s attention with an engaging and thoughtful opening paragraph. A strong introduction will naturally encourage them to continue reading.

• A compelling “hook” to capture the reader’s interest 
• The specific position you are applying for
• How you learned about the job opening
• The primary reason why your application should be considered

Keep the focus on the employer’s perspective. What value can you bring to the company? What is the most crucial aspect for someone to accomplish in this role? What is your most impressive achievement?

3. Why You Are the Ideal Candidate for the Job

Using relevant keywords in your cover letter and resume demonstrates to hiring teams that you possess the skills they are seeking. Utilize the second paragraph of your cover letter to explain how your experience qualifies you to help the company achieve its goals.

This is your opportunity to highlight your most significant achievements and showcase your unique value. Draw connections between your past successes and how they position you to excel in this new role. By emphasizing your track record of success, hiring teams will view you as a candidate who must be interviewed.

Consider using bullet points to emphasize your quantifiable accomplishments and impressive statistics. Incorporating numbers allows you to demonstrate your impact and what you can bring to a potential employer.

For example:

• Reduced costs-per-click by 40%, resulting in a 65% increase in conversions and a monthly profit boost of $15,000.
• Managed and trained a team of 10 developers across six countries, achieving a 98% on-time delivery rate.

If you do not have specific statistics readily available, consider keeping a running list of your professional achievements and successes. This will ensure that you have a comprehensive record to reference when updating your resume and cover letter.

While your resume outlines your qualifications, cover letters provide an opportunity for hiring teams to assess whether your personality and values align with the company culture.

Therefore, the next paragraph of your cover letter should demonstrate this alignment.

• Discuss the company’s mission statement
• Highlight their business model
• Reference recent accomplishments or goals
• Show familiarity with their product or service lineup
• Express interest in any volunteering or outreach initiatives

Do you share the same passion, values, and interests? Are you a devoted user of their products? Have you followed their journey from startup to Fortune 500 company?

Many job ads now include information about the company culture. Use this information to demonstrate your genuine interest in the company and its mission, rather than simply applying to any job that matches your title.

The final paragraph of your cover letter should include three elements:

#1. A concise summary: Use this opportunity to mention any points that you were unable to include elsewhere but would provide additional reasons for the hiring team to consider your application.

#2. A call to action (CTA): A sentence or statement that encourages the reader to take action based on your suggestion or prompt.

CTAs are commonly used in marketing, and they are applicable here because ultimately, your cover letter is a tool to persuade potential employers that you are the best choice for the position.

Make this the final sentence of your cover letter.

#3. A formal closing: Sign off your cover letter with a professional salutation and your name. Some popular options include:

• Sincerely
• Respectfully
• Thank you
• Appreciatively
• Best
• Regards
• Best regards
• Kind regards
• Take care

However, if you prefer to create your cover letter from scratch:

When reviewing cover letter examples and templates online, you will notice that they adhere to specific formatting guidelines. It is advisable to follow these standards to ensure that your cover letter is easy to read and scan, which is highly beneficial for busy hiring teams.

• Use 1-inch (2.5 cm) margins on all sides to provide sufficient white space and improve readability.
• Utilize a professional font family, such as Arial, Helvetica, Calibri, Times New Roman, etc., in size 12 pt.
• Write concise sentences using action verbs to create a dynamic and engaging tone. Get straight to the point and let your achievements speak for themselves.
• Organize your content into 3 to 5