what must a cover letter consist of

How to Structure a Cover Letter in 2024: 10+ Proper Examples

A cover letter is a document that accompanies a job seeker’s resume or job application. It is a personalized letter that introduces the candidate to a potential employer and highlights their qualifications and skills relevant to the job position. A cover letter serves as an introduction, a chance for the job seeker to make a good first impression and to differentiate themselves from other candidates.

Why is a Cover Letter important?

A cover letter is an essential tool for job seekers, as it can significantly increase their chances of getting hired. It allows them to demonstrate their interest in the job position and the company and showcase their suitability for the role. A well-written cover letter can help candidates stand out from the competition and communicate their value proposition to employers.

Purpose of a Cover Letter

The purpose of a cover letter is to persuade the employer to consider the job seeker’s application and invite them for an interview. It is an opportunity for the candidate to sell themselves, pitch their skills and experience, and show how they can add value to the organization. A cover letter provides additional context and information that may not be included in the resume, such as career goals, achievements, and personal attributes.

A cover letter is a powerful tool for job seekers to market themselves to potential employers and increase their chances of getting hired. The following sections of this article will provide 10+ proper examples of how to structure a cover letter for various job positions and industries.

Understanding the Structure of a Cover Letter

When it comes to crafting a cover letter, establishing a solid structure is key to ensuring your application stands out from the rest. A well-structured cover letter should consist of the following elements:

The heading should be placed at the top of the cover letter and should include your name, address, phone number, and email address. You can also include the date and the recipient’s name and address if you have that information available.

Introduction

The introduction serves as your chance to grab the reader’s attention and make a strong first impression. Start by addressing the reader by name and briefly explaining why you are writing. Be sure to include the name of the position you are applying for and where you found the listing.

The body of the cover letter is where you can expand on why you are the ideal candidate for the position. Your cover letter should consist of at least three paragraphs:

Paragraph 1: Why you are interested in the job

In this paragraph, you should explain why you are interested in the position and the company you are applying to. Mention any unique aspects of the job or company that stand out to you and why they align with your career goals.

Paragraph 2: Why you are the perfect candidate

This paragraph should highlight your skills, qualifications, and experiences that make you the perfect fit for the position. Use specific examples to demonstrate how your skills and experience align with the job description.

Paragraph 3: Relevant experience and skills

In this paragraph, expand on your experiences and skills that specifically relate to the job you are applying for. Use concrete examples and metrics to demonstrate your expertise, and how you can contribute to the company’s success.

Paragraph 4: Closing and call-to-action

The final paragraph should summarize your interest in the position and the company. Additionally, you should use this opportunity to express your enthusiasm for the role and your willingness to contribute to the company’s continued growth. End with a call-to-action, requesting an interview or thanking the reader for their time.

The closing should include a polite sign-off such as “Sincerely” or “Best regards” followed by your name.

A well-structured cover letter can make all the difference in the job application process. By following these guidelines, you can craft a compelling cover letter that effectively demonstrates your qualifications and sets you apart from other candidates.

How to Start a Cover Letter

When it comes to writing a cover letter, the opening is crucial. It’s the first impression you make on the hiring manager, and you want it to be a strong one. Here are some tips on how to start your cover letter:

Start your cover letter with a professional greeting, such as “Dear Hiring Manager” or “Dear [Company Name] Team.” Avoid using generic greetings like “To Whom It May Concern” as they can come off as impersonal.

Opening Statement

In the opening statement, introduce yourself and express your interest in the job. You can also briefly highlight why you are a good fit for the position.

Mention the Source of Job Posting

Let the hiring manager know where you found the job posting. This shows that you’ve done your research and are genuinely interested in the position.

Include Personal Referrals, If Applicable

If you have a personal connection to the company, such as a referral from a current employee, mention it in your cover letter. This can give you an edge over other applicants and make a strong impression on the hiring manager.

Highlight Achievements

In the body of your cover letter, highlight your professional achievements and how they relate to the job you’re applying for.

By following these tips, you can create a strong opening to your cover letter that will grab the hiring manager’s attention and set you apart from other applicants.

How to Write the Body of a Cover Letter

The body of your cover letter is where you really have the chance to showcase your skills and experience to the hiring manager. More importantly, it’s where you need to connect your qualifications directly to the requirements of the job you’re applying for. Here’s how to do that effectively:

Customize the body for each job application

One of the biggest mistakes jobseekers make is writing a generic cover letter that they can send out to any employer. It’s crucial to customize your cover letter for each job application you submit. This means doing some research on the company and the position you’re applying for, and tailoring your letter to fit their specific needs.

Use specific examples

In order to demonstrate your value to the employer, you need to provide specific examples of your past experiences and accomplishments. Don’t just write that you have “strong communication skills” or “a proven track record”; instead, give concrete examples of how you’ve used those skills in the past – for instance, how you managed a team, resolved a customer issue, or spearheaded a successful project.

Connect your skills with job requirements

The purpose of the cover letter is to prove that you’re the best candidate for the job. In order to do that, you need to show how your skills and experience directly relate to the requirements listed in the job posting. Don’t assume that the employer will make the connection themselves; spell it out for them.

For example, if the job posting lists “proficiency in Microsoft Excel” as a requirement, you might write something like: “As you can see from my resume, I have extensive experience with Microsoft Excel. In my previous role, I used this skill to develop complex financial models that led to a 12% increase in revenue for our department.”

Use keywords and phrases from the job description

In addition to connecting your skills to the job requirements, you should also use some of the same language and phrases that appear in the job posting. This not only shows that you’ve read and understood the posting, but also helps your application get past any screening software that the employer may be using.

For example, if the job posting mentions “collaboration” as a requirement, you might write something like: “I’m thrilled to see that collaboration is such a key component of this position, as it’s something I’m truly passionate about. In my previous role, I worked closely with cross-functional teams to develop and implement marketing campaigns that exceeded our targets by 25%.”

Use the body of your cover letter as an opportunity to prove your value to the employer by customizing it for each job application, using specific examples, connecting your skills to job requirements, and using keywords and phrases from the job description.

What to Avoid in a Cover Letter

When it comes to crafting a cover letter, there are certain things that you should avoid in order to make a good impression on potential employers. Below are some common mistakes that you should steer clear of when writing a cover letter:

Grammatical errors and spelling mistakes

Grammatical errors and spelling mistakes can undermine your credibility and make it difficult for employers to take you seriously. Make sure to proofread your letter carefully and use tools like grammar checkers to catch any mistakes before submitting your application.

Clichéd statements

Using clichéd statements such as “I’m a real go-getter” or “I work well under pressure” can make you come across as unoriginal and uninspired. Instead, try to demonstrate your skills and experience through specific examples and accomplishments.

Irrelevant information

Including irrelevant information in your cover letter can distract from your qualifications and make it hard for employers to see how you fit the position. Make sure to stay focused and only include information that is directly related to the job at hand.

Overuse of buzzwords

While buzzwords can be useful in demonstrating your knowledge of industry trends, using them too often can make you seem insincere and unoriginal. Use them sparingly and only when they add real value to your letter.

By avoiding these common mistakes, you can ensure that your cover letter is well-structured, professional, and effective in highlighting your qualifications and experience.

How to End a Cover Letter

As you come to the end of your cover letter, it’s important to leave a lasting impression. Here are a few crucial elements to include in your conclusion:

Summarize your interest in the job:  Reiterate why you’re excited about this particular role and how it aligns with your career goals.

Mention your relevant skills and experience:  Briefly touch on the qualifications that make you the perfect fit for this position.

Request an interview:  Emphasize your eagerness to discuss your application further and express your availability for an interview.

Provide contact information:  Finish off your cover letter with your full name, phone number, and email address. Make it easy for the hiring manager to get in touch with you.

By following these guidelines, you can leave a strong impression and increase the chances of getting called for an interview. Remember, the goal of your cover letter is to show why you’re the best candidate for the job, so end your cover letter with confidence and enthusiasm!

How to Format a Cover Letter

When it comes to formatting your cover letter, you want to keep things simple and professional. Here are a few key tips to keep in mind:

• Use a consistent font style and size throughout the entire letter to maintain a uniform look.
• Avoid using too many colors and graphics as this can detract from the content of your message.
• If you need to use bullet points to highlight important information, keep them concise and to the point.

By following these formatting guidelines, you can ensure that your cover letter looks polished and professional, making a great first impression on potential employers.

Examples of Cover Letters for Different Job Roles

The structure and content of a cover letter may vary depending on the job role you are applying for. Here are three examples of cover letters tailored to different job levels:

Sample Cover Letter 1: Entry-Level Position

Dear Hiring Manager,

I am excited to apply for the entry-level position at XYZ Company. As a recent graduate with a degree in marketing, I am eager to apply my skills and knowledge in a professional setting.

In my previous internships, I have developed a strong understanding of marketing strategies and social media management. I am confident that my ability to learn quickly and work collaboratively will allow me to make a valuable contribution to your team.

Thank you for considering my application.

Sincerely, [Your Name]

Sample Cover Letter 2: Mid-Level Position

I am writing to express my interest in the mid-level position at ABC Corporation. With over five years of experience in project management and team leadership, I believe that I have the skills and expertise necessary to excel in this role.

Throughout my career, I have demonstrated a strong ability to manage complex projects and deliver results on time and within budget. Additionally, my experience in mentoring and coaching team members has allowed me to effectively collaborate with colleagues and foster a positive work environment.

Thank you for your time and consideration. I look forward to the opportunity to discuss my qualifications further.

Best regards, [Your Name]

Sample Cover Letter 3: Executive Position

Dear [Hiring Manager’s Name],

I am thrilled to apply for the executive position at XYZ Corporation. With over 15 years of experience in executive leadership roles, I possess a deep understanding of organizational strategy, financial management, and stakeholder engagement.

During my tenure at ABC Company, I played a crucial role in driving revenue growth and expanding our market share. My ability to build strong relationships with internal and external stakeholders has been instrumental in achieving these results.

I am confident that my strategic vision and leadership capabilities align with the requirements of this position. Thank you for considering my application.

Best Practices for Writing Cover Letters

To increase your chances of landing the job of your dreams, it’s essential to follow some best practices when it comes to writing your cover letter. Here are some tips to help you succeed:

Do your research before writing

Before you begin drafting your cover letter, you must do your homework. This means researching the company you are applying to, understanding their values, goals, and mission, and reviewing the job description to ensure you understand the skills and requirements the employer is looking for. Armed with this knowledge, you can tailor your cover letter to highlight your most relevant experience and accomplishments.

Use an active and professional tone

When writing your cover letter, it’s important to use an active and professional tone. Avoid using passive language or cliches, and be sure to highlight your enthusiasm for the role and the company. Keep your tone positive and upbeat, and show the employer what sets you apart from other candidates.

Edit and proofread your cover letter

Your cover letter is your chance to make a great first impression with the employer, so it’s crucial to ensure that it is free of errors and typos. Take the time to edit and proofread your document carefully, paying close attention to grammar, punctuation, and spelling. You might even consider having a friend or colleague review your cover letter for feedback.

Follow up with the employer after submitting your application

After submitting your cover letter and resume, it’s a good idea to follow up with the employer within a week or so to show your interest in the position. You might send an email or give the employer a call to inquire about the status of your application and to reiterate your enthusiasm for the role.

By following these best practices for writing cover letters, you’ll be well on your way to crafting a winning application that will help you stand out from the competition. Good luck!

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How to Write an Incredible Cover Letter

A comprehensive guide on the best structure for your cover letter, what to include and tips to make your application stand-out.

Cover Letter Structure

While a resume merely states facts about you, the cover letter allows you to tell the full story of why you’re the ideal candidate for the job.

This article will walk you through how to write the best cover letter to maximize your chances of getting through to the next stage of the application process. To provide a detailed example, it will focus on a cover letter for the McKinsey business analyst role.

Generally, a cover letter is structured in the following way:

• Why this company/ position
• Why you're the right candidate

Those paragraphs should make up a one-page cover letter and it’s not recommended to have anything longer than that. Remember to break the letter down into a few paragraphs so that it is easy for the recruiters to read and navigate.

Let’s get into the details of each section.

Cover Letter Header

The header is fairly straight forward. On one side you will have the recruiter’s contact details, and on the other side you’ll have yours. (See the picture below for the layout). Remember to keep the email appropriate and formal, probably best not to use the one you created when you were 12.

If you don’t know the recruiter’s information don’t worry, either put the name and address of the company, or just delete that section.

Cover Letter Opening

The first big section is the introduction, where you want to explain who you are. For example, you could be a third year student at Harvard University majoring in Economics, or a working professional in Google’s engineering team. Then, you want to mention the specific position you’re applying to and show enthusiasm.

It is also common to have a hook here to grab the attention of the recruiter. This could be mentioning an accomplishment, recent news about the company, or it’s popular to mention a mutual connection if you have one. This could be as simple as “after attending a career fair at my university and speaking with Bill Smith, a management consultant at McKinsey, I was very impressed to hear about McKinsey’s unique company culture. Specifically…” .

By writing this the person is able to demonstrate that they’ve done their homework, as they’ve gone out of their way to meet McKinsey representatives at a career fair, and even managed to talk with Bill about what the company’s culture is like. It also encourages the recruiter to keep reading in order to find out what this applicant means by McKinsey’s unique company culture.

If you can use a hook, that’s great, but it’s not going to damage your cover letter if you don’t include one.

Why this Company & Position

In this section you want to explain your motivations for applying to this role. When doing research for this part it’s useful to read the companies about page, and the job description. For example, if you were applying to McKinsey’s business analyst role, from their website you could discover that the company places a big emphasis on developing their employees, since they provide training, mentoring, and leadership opportunities.

• Why this company. Mention your findings from the website by saying “I am attracted to McKinsey as junior employees receive training, mentoring, and substantial responsibilities to continue growing their career at the company” .
• Why this role. Look at some of the bullet points that describe the tasks and requirements of the position. For the McKinsey role the description indicates a focus on problem solving, working with teams, and presenting effectively. From this you could write “the business analyst role is particularly appealing to me as it offers the challenge of solving complex problems, the opportunity to collaborate as a team, and the chance to communicate our findings effectively to senior management” .
• Bonus answer. Mention specific news articles that the company you’re applying to has been involved in. For example, in the case of McKinsey, it could be some of the strategic solutions that they proposed to a client and how that’s changed their negative dynamic into a more positive one. Also, if you name drop specific clients they’ve worked with and helped improve, that shows you’ve done your homework. This is important as you want to show that your cover letter is tailored for McKinsey, and not just a generic one.

Why you are the Ideal Candidate

This section is essentially your sales pitch. It’s where you highlight why you, this company, and this position are the perfect match.

• Look at the job description and requirements. For the McKinsey business analyst role, the description shows that they are looking for people that can break down and solve problems through quantitative analysis, and that they should be comfortable with ambiguous and ever-changing situations.
• Find relevant personal examples. For instance, this could be “this past summer, I interned at an NGO fighting poverty, where I was involved in solving the complicated logistics of delivering perishable food to people in need across the city. I created an excel model that predicted the departure and arrival times of each food container, allowing us to efficiently transport food to over 50,000 people, with savings worth $10,000 a year.”

This example is made up, but it highlights that you tackled a complicated problem that was ever-changing, by applying excel, an analytical tool to solve it. The answer also quantifies the results to give the recruiter an idea of size and detailed context.

As you can see from this example, even though McKinsey is a management consulting company and this internship was at an NGO, if presented in this way, there are quite a few transferable skills. Whilst this is an example of a job, it could be an extracurricular project or university coursework if you don’t have much work experience yet.

• Avoid this common mistake. Don't apologize for a lack of experience. People often put “although I have limited professional experience, I believe that my relevant courses in university provide the necessary knowledge to succeed in this position” . However, there’s no need to mention that you have limited professional experience as you are just highlighting your weaknesses when they haven’t even asked for it.
• Pull on the educational experience you already have. For example, “I’m excited to apply the business theory I have learned at university in a practical environment such as this business analyst position” . Now instead of highlighting your weaknesses, you’re able to show how you can transfer your theoretical skills into practical ones.

There’s no clear rule on how many paragraphs this section should be, so as long as it strengthens your application and doesn’t go over the 1-page mark, feel free to include it. However, try not repeat your resume in bulk, just highlight certain positions and skills you gained for them, and only add experiences that are relevant for the job.

Cover Letter Closing

There are two main things you want to address in the closing section. First, you want to reiterate that you’re the right candidate for the role, and then thank the recruiters for their time.

The first part could be something along the lines of “I am confident that my background, education, and work experience will yield the right set of skills for the Business Analyst role at McKinsey in NYC.” This briefly summarizes the points you’ve mentioned in the cover letter, and clearly states which role you are applying for, creating a full loop from the introduction paragraph.

For the second part, this only needs to be a brief sentence, along the lines of “thank you very much for your time and consideration in reviewing my application.”

Once you have a cover letter and a storyline that you’re happy with, then you can recycle its content. For example, you can take a portion of the cover letter when sending out a cold email asking for a job, or you can also use it to answer the “tell me about yourself” question during an interview, or even have it on your LinkedIn “about” page.

Taking the time to draft a strong cover letter is important as it can become a useful resource.

Finally, do you need to update your cover letter for each application you send?

Ideally, you would have a few different cover letter templates by industry. For example, if you’re a business student interested in finance, accounting, and consulting, you’d have three different templates. Obviously, the skills for an accounting and consulting job will differ quite a bit so it makes sense to have different templates. However, if you’re looking at two management consulting jobs at Deloitte and at EY , they probably have similar requirements, and you can getaway with using the same template and modifying a few words here and there.

Many people recommend that you tailor your cover letter to each application, but realistically if you’re applying to 50 roles, it will take you a while and it won’t necessarily be time efficient to make 50 completely different cover letters.

Additional Resources

If you want to develop the technical skills you'll need to become a stronger job applicant, take a look at our Excel for Business & Finance Course , our Complete Finance & Valuation Course and other courses using the get started button below.

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Introduction

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What To Include In A Cover Letter (With Examples)

• Cover Letter Format
• Salutation and Greeting
• Who To Address When Unknown
• How To Start A Cover Letter
• How To End A Cover Letter
• Best Cover Letter Font And Size
• Cover Letter Spacing
• Cover Letter Length
• Key Elements Of A Cover Letter
• How To Write An Address
• Official Letter Format
• Cover Letter Opening

Find a Job You Really Want In

Cover letters are the first introduction to you as a person and potential employee. While resumes cover your work experience and skills, the cover letter explains why you, specifically, should get the job. It’s where you can showcase your writing skills, why you want the position, and highlight your relevant skills and qualifications.

If you’re looking to write up a cover letter for a job you’re applying to, or if you want to see if your letter checks all the boxes, then this article will help you out. While a hiring manager may not select you entirely because of your cover letter, giving it that extra bit of shine could push you into the top candidate slot.

Key Takeaways

Your cover letter should include:

Your contact information and the date

The employer’s contact information

Body paragraphs

A closing paragraph

You should customize your cover letter to every position you apply to.

Focus on what you can add to the company in your cover letter.

Work keywords from the job description into your cover letter.

What to include in a cover letter

Example cover letter, cover letter tips, what not to put in a cover letter, final thoughts, cover letter faq.

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Cover letters, like every business communication, have a set of rules that you’re expected to follow. They should be short, confident, and include information relevant to the job. The format of a cover letter determines what goes where, meaning that you won’t have to spend long organizing your letter.

With that in mind, here’s everything you need to include in each part of your cover letter :

Your Contact Information and the Date

The very first key element your cover letter is going to be a header that includes your contact information. You’re going to list your name, your address, your phone number, and your email address. Feel free to include your LinkedIn contact information or a link to your online portfolio .

Make sure you create a professional email address if you don’t already have one. Something like [email protected]. It’s another way to make a good first impression on the hiring manager.

Lulu Paige 333 First Street Los Angeles, CA , 90001 (000) 111-2222 [email protected] January 1, 2023

Employer’s Contact Information

Even though most cover letters are submitted online nowadays, it’s still a rule of thumb to include the company’s contact information. Google the company to find their local address and list it beneath your own contact information.

If you can’t find out the company’s local address, don’t sweat it — but if you can find it, include it just for tradition’s sake.

Adam Smith Recruiter TopNotch Company 111 West Street Los Angeles, CA 90001

How you address your cover letter is more important than you might think. Try to avoid greetings like “ To Whom It May Concern ” or “ Dear Sir or Madam. ” While there’s nothing inherently wrong with either, they’re seen as out of date and impersonal.

Hiring managers value it if you show you’re willing to put in the extra effort to find out who to address the letter to. Put effort into finding out the name of the person who’s going to be reading your cover letter. Call the company’s front office or review their website to find their hiring manager’s name.

Acceptable addresses include:

Dear Chris Rogers, Dear Mr. Rogers, Dear Mr. Chris Rogers, Dear Hiring Manager, Dear Human Resources Manager,

While conventional wisdom states that using the person’s title (in this case “Mr.”) is preferable and more polite, be very careful about assuming someone’s gender. If their honorific is Dr., then it’s safe to include, but unless you know what the hiring manager’s preferred pronouns are, it’s best to just use their full name.

Body Paragraphs

The body of your cover letter is the most important part. It tells the employer what job you’re applying for, why they should bring you in for an interview , and how you’re going to follow up.

First paragraph. This is your cover letter introduction . It’s where you’re going to grab the employer’s attention and make them want to read the rest of your cover letter.

Let’s not waste any time in this paragraph — go ahead and tell them which position you’re applying for and how it relates to your background, and show them that you’re excited about the opportunity.

I am interested in applying for your Social Media Manager position that I saw advertised on Zippia .com. After contributing to the growth and success of my last employer’s presence on Facebook and Instagram, I am seeking new challenges with a company that is looking for someone with exceptional leadership and management abilities.

Second paragraph. This is where you’re going to tell the hiring manager what you have to offer. Use this paragraph to list your qualifications, give examples from your work experience , and quantify any of your achieved results.

I know my proven leadership skills, strong commitment to growing a social media base, and flexibility with regard to assignments would allow me to make a significant contribution to TopNotch Company. I welcome the opportunity to discuss how my qualifications could benefit your company’s continued success.

Pro tip: Go into more depth on your relevant qualifications, but make sure not to copy your resume word for word. Use your cover letter to highlight the most important reasons why you’re the ideal candidate.

Third paragraph. Discuss what you know (and like) about the company. This is your chance to impress the employers even further by showing them that you care enough to do some background research on the company , and how you can contribute to their mission.

TopNotch’s commitment to a sustainable future aligns with and inspires my own values of environmental consciousness and stewardship. Even as a digital marketer , I found ways to reduce my office’s carbon emissions by 11%, and I’d be thrilled to work for a company that values and prioritizes such changes.

Feel free to mention any current events, information about the company’s history, their core values, or their mission statement.

Closing Line

The final paragraph is where you’re going to close your cover letter . Summarize what you could bring to the position and request an interview or a phone call.

I’d like to thank you again for taking the time to review my application and resume, and I welcome the opportunity to discuss my qualifications with you in detail.

Picking an appropriate and successful sign-off is trickier than you might think. A cover letter is a professional document, so you have to be strategic with everything you write.

With that in mind, here are some sign-offs to choose from that hiring managers respond well to:

Best regards

Respectfully

Thanks in advance

And here are some sign-offs you should avoid at all costs:

Best wishes

Affectionately

Sent from my iPhone

You get the idea. Pick an appropriate sign-off, sign your name, and then you’ve got yourself a cover letter!

Lulu Paige 333 First Street Los Angeles, CA, 90001 (000) 111-2222 [email protected] January 1, 2020 Adam Smith Recruiter TopNotch Company 111 West Street Los Angeles, CA 90001 Dear Mr. Smith, I am interested in applying for your Social Media Manager position that I saw advertised on Zippia.com. After contributing to the growth and success of my last employer’s presence on Facebook and Instagram, I am seeking new challenges with a company that is looking for someone with exceptional leadership and management abilities. As you will see in my enclosed resume, while serving as a Social Media Intern, I was tasked with onboarding new employees and managing their publishing schedules as well as coming up with content for my own calendar. My ability to juggle these different tasks reinforced my desire to advance in my career and step into a management role. I know my proven leadership skills, strong commitment to growing a social media base, and flexibility with regard to assignments would allow me to make a significant contribution to TopNotch Company. I welcome the opportunity to discuss how my qualifications could benefit your company’s continued success. I’d like to thank you again for taking the time to review my application and resume, and I welcome the opportunity to discuss my qualifications with you in detail. Sincerely, Lulu Paige

Knowing all the parts of a cover letter is essential, but that’s not the only trick to writing an excellent cover letter. Putting in a bit of extra effort will make your cover letter stand out from the rest, and will therefore make you more likely to get an interview.

Customize each cover letter. When you’re sending out applications to multiple companies, it’s essential to tailor each cover letter and resume for the job. Your resume customization may just take a few strategic keyword changes and emphasizing different parts of your experience.

Your cover letter customization, however, should be much more thorough. Hiring managers and recruiters can spot a generic cover letter a mile away, so be sure to talk specifically about why you’re interested in the company and what particular value you’d have for the company.

Find the hiring manager. In the spirit of customization, try your best to find the hiring manager or recipient’s name. Review the job posting for contact info, research the company’s website, and look on LinkedIn if you’re stuck. Or just call the company’s HR department and ask.

If you’re still stuck, “Dear Hiring Manager” or one of its alternatives will work.

Don’t copy your resume. Instead of repeating every point from your resume, pick one or two bullet points to really emphasize. Think about what accomplishments you can quantify since those are the most compelling evidence of your past success.

Also, your cover letter should answer the “how” and “why” of your career, so discuss how you achieved those awesome results and why you enjoy doing things your way.

Always focus on the company. A cover letter is your chance to sell yourself, but that mostly means highlighting how the company will benefit from your skills , methodologies, and contributions.

Steal keywords from the job description. Highlight keywords from the job description like skills, qualifications, and attributes, and then incorporate some of those words throughout your resume and cover letter. That way, it’s super easy for a recruiter or hiring manager to see how your experience matches up with the job requirements.

Match the company culture. Spend some time researching the company on their website and scouting employees on LinkedIn. If you can match the tone of the company’s written communications, you’ll be in good shape for presenting as a solid cultural fit.

Let your personality shine. Resumes are boring, but cover letters are your chance to showcase who you are as a person as well as a professional. Don’t go overly formal (unless you’re applying to a conservative firm).

Hiring managers want to know what kind of person you’re like to work with, and while the interview will inform them more fully, your cover letter is meant to whet the reader’s appetite so they want to call you in for an interview in the first place.

Open and finish strong. Cover letters are generally skimmed, so you really want to make your opening and closing lines count. Open with an attention grabber and finish with a strong call-to-action and reminder of your awesomeness and enthusiasm.

Keep it short . Cover letters should never be more than 400 words, but we recommend aiming for a 200-300 word count. As we said, recruiters usually skim these things, so make it easy for them.

Review and edit. Never send a cover letter without a proofread, a spellcheck program, and, if possible, a trusted confidant to read it over. Another pair of eyes might catch things you didn’t notice re-reading it over and over again.

Email cover letters. If you’re emailing your cover letter directly (as opposed to attaching it or mailing it physically), be sure to include a descriptive subject line.

Often, employers will tell you how to label your email in the job posting, so follow any directions there. If not, a subject line that includes your name and the position you’re applying for is a safe bet.

For an email cover letter, don’t include contact information at the start. Instead, put your contact information after your signature (you can skip your physical address) and leave out the company’s contact information entirely.

Knowing what to avoid putting in your cover letter can be just as helpful as knowing what to put in it. Here are a few items you should leave out:

Lies (even little white ones or stretched truths).

Anything about salary.

Negativity about your current job.

Information about your personal life.

Long-winded paragraphs.

Unneccessary or irrelevant information.

Grammatical errors.

Misspelled words (including names).

Unprofessional email addresses or file names.

Polarizing or controversial hobbies or opinions.

Cover letters are one of your most valuable tools when it comes to applying for jobs. They let you go into detail about your qualifications, demonstrate your communication skills , and show that you’re interested in a specific company.

When you write your cover letter, make sure to include your professional contact information, go into detail about your relevant skills, and show that you’re motivated to help the company achieve its goals. Show the hiring manager why you’re the best person for the position, and you’re on your way to getting the job of your dreams .

Do you need a cover letter?

Whether or not you need a cover letter will depend on the application’s requirements, but they’re highly recommended. Unless the instructions explicitly state not to send in a cover letter, it’s recommended to include one.

Cover letters allow you to focus on skills relevant to the job that may not fit into your resume. It also lets you show that you’ve looked into the company by mentioning something about its culture, knowing the hiring manager’s name, or mentioning key skills.

What should you include in a cover letter?

A cover letter should include:

Your contact information. Include your name, address, phone number, and email address.

Company’s contact information. This should include the name of the company, their phone number, email address, and physical address if you can find it.

Salutation. Do your best to address this directly to the hiring manager that will be reviewing your application.

Introduction. This is the part where you say who you are and why you’re applying.

Body. This should be one to two paragraphs that cover your relevant skills, why you think you’d be a good fit for the job, and show your interest.

Closing line. Make sure to thank the hiring manager for their time. It’s also recommended to include a call to action, such as saying “I look forward to hearing from you.”

Sign off. Make sure to end with a professional closing, such as “Sincerely,” and then your full name.

How do you format a cover letter?


Cover letters should be formatted in standard business format. That means that it should use a 10 or 12-point legible font, such as Times New Roman, have double spacing between paragraphs, and be no longer than a page .

Harvard Business Review — How to Write a Cover Letter

National Careers Service — How to Write a Cover Letter

University of Wisconsin-Madison — Writing Cover Letters

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Maddie Lloyd was a writer for the Zippia Advice blog focused on researching tips for interview, resume, and cover letter preparation. She's currently a graduate student at North Carolina State University's department of English concentrating in Film and Media Studies.

Matt Warzel a President of a resume writing firm (MJW Careers, LLC) with 15+ years of recruitment, outplacement, career coaching and resume writing experience. Matt is also a Certified Professional Resume Writer (CPRW) and Certified Internet Recruiter (CIR) with a Bachelor of Science in Business Administration (Marketing Focus) from John Carroll University.

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How to Structure a Cover Letter

What to include in each part of a cover letter.

The Structure of a Cover Letter

• What to Include in a Cover Letter

Sending an Email Cover Letter

Cover letter template and example.

When  writing a cover letter  to apply for a job, it's important to include all the requisite information clearly and efficiently.

Your cover letter is a way to grab the hiring manager's attention and it's important to be sure that it's polished, professional, and complete with the information the reader expects to see. If any elements are missing, it could even disqualify you from consideration for the job.

A cover letter is comprised of several sections: your contact information, a salutation, the body of the cover letter, an appropriate closing, and a signature.

Review the structure of a cover letter, what to include in each part, and examples.

Your Contact Information

• What to include: The first section or header includes your contact information: name, address, phone or cell phone number, and your email address. It has also become common to include your LinkedIn address so that employers can immediately access your professional profile, resume, and networking contacts.  In an email, you can also list your contact info below your signature.
• Choose a style: Go with a simple block, centered header, or get a little fancy with the design if you're sending a hard copy. 
• Keep it professional: Also, keep in mind that your email address should sound simple and professional. Ideally, it would look like “[email protected].” Never use a “cutesy” email address that refers to your hobbies or political opinions or is off-color—your email address needs to reflect your professional identity, not your sense of humor.

You may want to create an email account dedicated solely to your career search. It can be easier to track all your correspondence when you have a dedicated email address for job hunting.

Employer Contact Information

• You can also include the employer's contact information. This is most appropriate to include on a formal, hard copy cover letter submitted through snail mail or by hand.
• If you are sending a job application by email or through an employer’s online application system, it is not as necessary to include this contact information.
• As a general rule of thumb for email applications, use the formal contact address if you know it, but don’t worry too much about omitting it otherwise.

Cover Letter Salutation

Although you may not need to know whom to address when sending a cover letter via email, getting a name to address your letter to is important. Do your research to avoid having to use the generic " To Whom It May Concern " or "Dear Sir or Madam," which can make things look like you didn't make an effort to learn more about the job or the employer. The best ways to learn contact names are to call an organization’s front office or to review their website.

To get in gear, review samples of  cover letter salutations . If you can't find a contact person, there are options you can use instead .

Cover Letter Body

The body of your cover letter lets the employer know what position you are applying for, why the employer should select you for an interview, and how you will follow up. This section of your cover letter includes:

• First paragraph : Why you are writing. This is "the grab," your chance to grasp your reader by the collar and get their attention. Offer some specific, focused information regarding the job you're seeking and a few core strengths that demonstrate your suitability for the position.
• Second paragraph : What you have to offer the employer .  This is your hook where you highlight examples of the work performed and achieved results. Draw on your key competencies from your resume, although don't copy it word for word. Bullet points in this paragraph are extremely effective in drawing your reader's eye to your successes.
• Third paragraph : Your knowledge of the company. Show that you did your research and know something about the business and how you can contribute to its mission.
• Fourth paragraph : Your closing. Summarize what you would bring to the position and suggest next steps by requesting a meeting or suggesting a call.

You can boldface quantifiable achievements like YOY sales figures in order to make these “pop” on the page.

Finish your letter with a formal closing like "Sincerely" or "Yours truly." A cover letter is professional correspondence, so don't use informal closings like "Cheers" in the letters you write to apply for jobs.

Your Signature 

How you sign your cover letter will depend if you're sending a paper or email letter. If you're sending a paper letter, type your name after the salutation, leaving a space for your handwritten signature. If you're sending an email cover letter, type your name and contact information after your salutation.

Signature for a Hard Copy Letter Example

Mary Barnes (Your Signature)

Mary Barnes

Email Letter Signature Example

Mary Barnes Address City, State Zip Email Phone

When you're sending a cover letter via email, include your name and the job you're applying for in the subject line of the message. That way, you'll be sure your message gets opened and read.

Subject: Mary Barnes - Marketing Assistant Position

Download a cover letter template (compatible with Google Docs and Word Online) or see below for more examples.

Cover Letter Example

Lucius Applicant 123 Main Street Anytown, CA 12345 555-555-5555 lucius.applicant@email.com

August 12, 2020

William Lee Lead Mechanic Acme Auto 123 Business Rd. Business City, NY 54321 

Dear Mr. Lee:

I’m writing to apply for the position of diesel mechanic at the City Transit Agency, as advertised on the city’s careers web page. I’ve included my resume for your consideration.

In addition to experience as a diesel mechanic, I have an excellent knowledge of gasoline engines and electric systems, and I hold a CDL drivers license. Most recently, I worked for Trailer Transfer in Middletown as their lead diesel mechanic. While I was there, I developed a training program for new hires. However, I had to leave my job due to a move to your city.

Thank you for your time and consideration. I will follow up next week to see if I can offer any more information about my skills and experience. My cell phone is 555-555-5555 and my email is lucius.applicant@email.com. 

Best regards,

Lucius Applicant (Signature hard copy letter)

Lucius Applicant

Need more examples? Here are more cover letter examples , including templates you can customize to create your own cover letters.

What’s in a Cover Letter?

When applying for a new job, it is important to include a well-written and memorable cover letter with your resume. You might have written an excellent and effective resume to apply for your dream job, however, a resume is not the only document you will need.  This article explains what to include in your cover letter and also provides a template and example to help when crafting your own.

What is a cover letter?

A cover letter is a short document that you send with your resume when applying for a job. As a hiring manager will read this letter first, and possibly even decide whether to go over your resume or not based on what they think of the letter, it is important to take care when drafting this document. Many hiring managers have to work their way through hundreds or even thousands of applications, so you want to ensure that your cover letter is error-free, memorable and stands out from the rest.

Tips for writing a cover letter

Take care not to simply repeat your resume in your cover letter. Whereas a resume provides all the necessary information, such as your education, skills and work experience, a cover letter should provide some detail about your specific career story to demonstrate your unique personality and work style. A cover letter also gives you the opportunity to provide an employer with information that you could not add in your resume, such as gaps in your job history.

How to write a cover letter

Here are a few guidelines you can follow when writing a cover letter:

1. First, start with a proper salutation

Ensure that you direct the letter to the appropriate person by stating their name instead of using a generic salutation, such as ‘To whom it may concern.’ By doing so, you demonstrate that you are interested in the specific job and have put extra effort into sending your letter to the relevant person.

2. Second, use a memorable introduction

In the introduction of your letter, you want to mention the job you are applying for and express your interest and enthusiasm. If possible, add a  quick anecdote or a personalized sentiment in your introduction. Remember, the hiring manager has to read through multiple cover letters, so you want your letter to draw their attention.

3. Third, mention your skills and experience that match the job description

In the body of the letter, you want to make it clear why you are an excellent candidate for the position. You should mention your top accolades and achievements in this section, and match the skills and work experience you mention to those outlined in the job posting. For instance, if the job posting lists marketing experience and lead generation, you could highlight your previous role as a marketing manager where you implemented an innovative ad campaign that drove extensive lead generation for your client.

4. Fourth, include a specific example or tangible evidence of your skills

If possible, add specific statistics, as this provides tangible evidence of your skills and achievements. Instead of saying that you are a problem solver, mention a specific example in your past when your problem-solving skills yielded positive results. Take care, however, to only include information in this section that is relevant to the job you are applying for. 

5. Lastly, close your letter with a thank you and a call to action

In your conclusion, you should thank the person for considering you for the position. Also, add a call to action. For instance, instead of stating that you will contact them to follow up on your letter, rather state that you are available to provide more information at any time and will be very happy to meet with them for an interview. You could also add, if relevant, that you are happy to relocate for the position or any other pertinent information.

Cover letter template

Here is a template of a cover letter that you can follow:

[Your name] [Address] [Phone number] [Email address]

[Name of hiring manager] [Job title] [Name of company] [Address]

Dear [Name of hiring manager],

[Introduction: State the position you are applying for. Include a sentence that draws attention.]

[Body of the letter: Mention your top accolades and match your skill set and experience to the requirements or essential points from the job posting.]

[Conclusion: Conclude the letter with a call to action and thank the person for considering you for the job.]

Yours sincerely, [Your name]

Cover letter example

Here is an example of a cover letter:

Sasha Parker 9056 Edgemont Ave. Jacksonville, FL 32218  (555) 555-5555  [email protected]

January 10, 2020

Ronald Stevens Owner The Health Bar 4321 West Lane West Palm Beach, FL 33415

Dear Mr. Stevens,

I have always wondered why some restaurants make it, while others don’t. In my 20-plus years in the hospitality industry, of which 12 have been spent working as a restaurant manager, I have reached the conclusion that it boils down to effective and innovative management. I have read your job posting for a restaurant manager with interest and think that I am the woman for the job.

In my current position as the restaurant manager at Francesco’s Pizza Parlor, I have managed to turn a failing business into a profitable and successful venture. In the last two years I have delivered:

• A 25% revenue growth by bringing in a new head chef, overhauling the menu and starting a catering side business for the company
• A 10% margin increase by reducing food wastage, improving stock control and negotiating better prices with suppliers
• Have increased our social media following by 40% through innovative marketing campaigns

I am proud to announce that in November last year, Francesco’s received its first accolade when Jacksonville Magazine announced that we had been chosen as the Best Pizza Restaurant in Jacksonville for 2019. I would be very honored to bring my skill and expertise to your venture, and am specifically excited about your focus on sustainability and organic, locally-produced ingredients.

Thank you for taking the time to read my letter. I am available at any time if you require more information from me. I am willing to travel to West Palm Beach at your earliest convenience so we can meet in person.

Yours sincerely, Sasha Parker

Parts of a Cover Letter: A Detailed Breakdown of 6 Must-Have Sections

3 takeaways

• Learn each part of a cover letter and proper cover letter structure
• Discover how to correctly write each section of your cover letter 
• The best method for generating personalized cover letters in seconds with the Teal AI Resume Builder

When you’re job searching, writing a cover letter can be one of the most discouraging tasks on the list. After all, you’ve already bookmarked the job you want, researched the company, and tailored the perfect resume to match the job description. 

And now, you need to find the time (and energy) to fit all that information into a single-page cover letter.

But by knowing all the parts of a cover letter, along with how to write them, you’ll have a massive head start in the application process. 

What are the parts of a cover letter?

Before you get started creating your cover letter sections, it's important to know the main parts of a professional cover letter. Here they are in order:

• Salutation (or greeting)
• Opening paragraph
• Closing paragraph

Struggling to land interviews with your current resume and cover letter? Get started with Teal’s AI Resume Builder today.

Just like there are resume sections , cover letters have sections, too.  So, first things first: should a cover letter have a header? Absolutely. 

More than just a list of ways to reach you, the header of your cover letter is your first branding opportunity. It should mirror the header of your resume to frame your application as a polished and cohesive package. 

This symmetry isn't just visually appealing; it shows a deliberate and meticulous approach to your job application.

But what should be on a cover letter header?

The key elements of a cover letter header include your:

• Email address
• LinkedIn URL (Optional)
• Phone number

Here’s an example: 

Consider adding a link to your professional online profile, like LinkedIn, especially if you’re applying for a remote job. 

Note: Even if you’re sending an email cover letter, you should attach your letter as a PDF. First, it’s just easier to format. Second, it helps the hiring manager print or share this document with other decision-makers. 

Following the date, you’ll want to add the:

• Name of the hiring manager 
• The company you’re applying to 

Here’s what this looks like: 

2. Salutation

When you’re on the hunt for a new job, first impressions matter. This is what makes the cover letter salutation so important.

This is where writing a personalized cover letter begins and where you demonstrate your interest and effort in connecting with the company on a human level. Directly addressing the hiring manager is highly recommended when you know their name. It signals respect, shows that you've done your homework, and positions you as a candidate who values personal engagement.

Why not just start your cover letter as “To whom it may concern”? 

Because in today's job market, where a lot of applications flood an inbox, a personalized greeting helps you stand out. It sets a tone of attentiveness and immediately tells the hiring manager that you pay attention to detail. 

Even this little gesture can transform a generic cover letter from a one-size-fits-all document into a tailored conversation starter that resonates with the person responsible for filling the role.

How to find the hiring manager's name

Finding the hiring manager’s name may seem difficult, but it’s often simpler than you think. 

Here are some strategies to uncover this key piece of information:

• LinkedIn : The professional network is your first port of call. Search for the company and sift through employee listings, focusing on those with titles like “Hiring Manager,” “Recruitment Officer,” or specific department heads if you’re applying for a specialized position.
• Company website : Sometimes, the information is hidden in plain sight on the company’s ‘Team’ or ‘About Us’ page. Larger companies might list their staff, job titles, and contact information.
• Calling in : A direct approach can be the most effective. Call the company’s front desk or HR department. Be polite, introduce yourself, and explain that you wish to address your cover letter appropriately. Most will be happy to help.
• Networking outreach : Rely on your network. Ask colleagues or mentors if they know who the hiring manager might be for the position you're eyeing. A mutual connection can often provide you with the name you need.
• Social media scan : Companies often post about their team and new hires on platforms like LinkedIn, Twitter, or Instagram. A quick search might yield the right name.

If you can’t find the hiring manager's name despite your best efforts, opt for a polite and general salutation like “Dear hiring manager” or “Dear hiring team” over the impersonal “To whom it may concern.” 

This retains a level of personalization and respect for the team's collaborative hiring effort. It also sets you apart from the many others who simply wrote: “to whom it may concern.”

Write the elements of a cover letter with Teal's AI

Before you start writing the main parts of your cover letter, consider using Teal instead.

Teal’s cover letter generator pulls from the information you added to a specific resume (also extracting the main keywords and details from the job posting you’re applying to) to align your content. Then, in just a click, you’ll have a great cover letter written before your eyes.

3. Opening paragraph

The opening paragraph of your cover letter is your chance to captivate the reader's interest and set the stage for your narrative. 

When it comes to your cover letter format , this section should include a succinct introduction of who you are, a brief mention of the position you’re applying for, and a compelling reason why the role aligns perfectly with your skills and career aspirations. 

How to grab your reader’s attention in the opening paragraph

To make your entrance memorable, the opening paragraph must do more than introduce – it must intrigue. Here’s how to ensure it does that:

• Start with a bang : Lead with a strong statement or a striking fact about your career achievements. Alternatively, a concise, bold expression of your enthusiasm for the company can be just as effective.
• Show, don't tell : Use a mini anecdote or a powerful example from your experience that reflects your capabilities and mirrors the values or needs of the company.
• Tailor your tone : Match the tone of your writing to the culture of the company. A startup might appreciate a more casual and innovative opener, while a traditional firm might respect a formal and straightforward approach.
• Add some flair : Add a touch of your personality without overshadowing your professionalism. Make sure it’s a blend that conveys your unique professional identity.
• Research results : Mention something recent about the company that impressed you, showing you’re up-to-date and genuinely interested in what they do.
• Give the why and the what : Clearly articulate why you’re excited about the role and what you bring to the table – this is your unique value proposition.

Example of cover letter content for an opening paragraph

“Imagine a marketing strategy so engaging that it doesn't just capture attention but creates a movement. That's been the hallmark of my approach as a Marketing Manager for the past decade, where I've increased brand engagement by an average of 65% year-over-year. Inspired by [Company Name]'s recent groundbreaking campaign on sustainability—a subject close to my heart since I was just a kid—I am eager to bring my expertise in crafting compelling narratives to the role of Head of Marketing.”

You can find more cover letter samples in these marketing manager cover letter examples .

What makes this a strong opening:

• Engages with storytelling: The opening verb is “Imagine,” which is much more engaging than something more traditional, like “My name is…”
• Quantifiable achievements: It includes a specific, measurable achievement (increasing brand engagement by 65% year-over-year), which adds credibility to the applicant’s claims and showcases a track record of success.
• Personal connection: There’s a personal touch with the mention of a lifelong passion for sustainability, making the applicant’s interest in the company feel genuine and deeply rooted.
• Alignment with company values: The reference to the company’s campaign on sustainability suggests that the applicant has done their research and shares the company’s values, implying a natural cultural fit.
• Focus on contribution: By stating a desire to bring expertise in crafting compelling narratives, the applicant immediately addresses how they can contribute to the company’s success rather than just what they wish to gain from the position.

If you can get all of those qualities to shine through in your cover letter, you’ll be more likely to get the reader over to the body of your cover letter. 

Your cover letter body is the meat of your message. It's where you dive into your professional journey, aligning your skills and experiences with the needs of the job at hand. 

This part should be structured in a clear and compelling manner, usually composed of one to three paragraphs, each serving a distinct purpose. 

The first paragraph should connect your past successes to the potential future contributions you'll make to the company. Subsequent paragraphs , like the second or third paragraph , can be used to go further into your relevant skills, experiences, and achievements while also reflecting your knowledge of the company’s goals and challenges.

How to showcase relevant skills and experiences

Here’s how to write a cover letter body that resonates with hiring managers:

• Customize and contextualize : Tailor each example of your experience to mirror the job description. It’s about relevance—show the reader why and how your background prepares you for the specific role.
• Quantify your impact : Use numbers and metrics to give weight to your achievements. Whether it’s increasing sales by a certain percentage or reducing costs through innovative solutions, numbers speak louder than words .
• Problem, action, result (PAR) method : For each skill or experience you share, present the problem you encountered, the action you took, and the result of your efforts. This method illustrates your thought process and problem-solving skills.
• Align with the company's vision : Show that you’ve done your homework by relating your experience to the company's current projects or goals. This demonstrates not just alignment but also initiative and forward-thinking.
• Storytelling with substance : Craft your experiences into a narrative that’s engaging. Your goal is to lead the reader on a journey that showcases growth, impact, and relevance to the role.
• Be concise, be clear : Avoid jargon and overly complex language. The body of your cover letter should be easy to read and understand, ensuring that your points are made without confusion.

Example of what should be in a cover letter body

During my tenure with XYZ Corp, a pioneer in eco-friendly packaging, I spearheaded a transition that faced significant initial resistance both internally and from our customer base. The challenge was formidable: to reframe the public's perception of sustainable packaging from a costly alternative to a savvy, consumer-driven choice. My strategy was to launch an educational campaign that highlighted not just the environmental impact but also the long-term economic benefits. This initiative not only garnered a 120% increase in consumer engagement but also positioned XYZ Corp as a thought leader in the market. In my most recent project, I led a cross-functional team to address a 15% slump in market share due to increased competition. By instituting a thorough competitor analysis and customer feedback loop, we identified key areas where our messaging fell flat. I orchestrated a brand revitalization campaign focused on our core strengths, infused with customer success stories. The result was a 25% market share rebound within the first quarter post-campaign. In each role, I've aligned my actions not only with the company's immediate goals but with a visionary outlook. For instance, anticipating the rise of AI in marketing, I initiated a successful pilot program at XYZ Corp that utilized machine learning to personalize customer interactions, leading to a 30% uptick in customer retention rates.

But remember, not every cover letter will focus on the same information. You’ll need to craft your cover letter according to the specific job you’re applying to. 

While this level of personalization may seem tedious, it’s absolutely necessary. 

5. Closing paragraph

One of the last main parts of a professional cover letter , the closing paragraph, isn’t just a summary but a strategic push to get you into the interview room. This part should reiterate your interest in the position, succinctly summarize why you’re the right fit, and express your enthusiasm about the potential to contribute to the company. 

It's also the place to include a call to action, such as expressing your desire to discuss your application in more detail in a personal interview.

How to end the cover letter on a strong note

• Reaffirm your value : Concisely restate how your skills and experiences align with the job and can benefit the company.
• Personal touch : Express genuine enthusiasm and confidence in your ability to perform the role. Let them feel your eagerness and readiness to take on the challenges it presents.
• Call to action : Encourage the hiring manager to take the next step. You can say you look forward to the opportunity to discuss how you can contribute to their team or that you're eager to provide further details on how you can help achieve their goals.

Closing paragraph example in a cover letter

I am excited to contribute to [Company Name]'s innovative marketing efforts. My skill set aligns seamlessly with the objectives of the Head of Marketing position. I am eager to apply my expertise in strategic planning and digital engagement to drive impactful campaigns that resonate with your brand's vision, and I look forward to discussing how my experience and insights can support your company's success. Thank you for considering my application, and I am hopeful for the opportunity to discuss collaboration in person.

If you're looking for more inspiration, check out this comprehensive database of 1300+ cover letter examples .

6. Sign-off

A professional sign-off sets the tone for how your cover letter is received. It's the equivalent of the final handshake after a successful meeting—it should convey respect and formality. 

Here's how you can ensure your sign-off strengthens your application:

• Choose the right closing : "Sincerely," "Best regards," and "Kind regards" are safe and professional options. If the company culture is more casual, "Best" or "Warm regards" may be suitable.
• Include your full name : Your sign-off should always include your full name to ensure clarity and formality. If you've established a personal connection with the hiring manager, adding a handwritten signature above your typed name can add a personal touch.
• Professional contact details : Beneath your name, include your professional contact details, such as your phone number and email address, and LinkedIn profile URL to facilitate easy follow-up.

The best way to write a cover letter 

Again, if writing a cover letter is your least favorite part of the job application, you’re not alone. It can be difficult to take all the bullet-point information from a resume and turn that into a single page of compelling and persuasive text. 

From getting the cover letter format just right to writing the actual information, it’s not an easy task. 

That’s why, with a tool like Teal’s cover letter generator , there’s simply no excuse for not having a personalized cover letter with each application. 

Simply build your resume, and with the click of a button, you can have a polished and personalized cover letter in seconds. 

Sign up for Teal today to give it a try!

Frequently Asked Questions

Nathan Thompson

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Cover Letter Format (w/ Examples & Free Templates)

Give someone who knows nothing about cooking the ingredients to a perfect meal and you’ll end up with a disorganized, very possibly inedible, meal. 

The same disorganized, quite possibly tasteless, fate awaits your cover letter if you don’t know how to properly format it. 

Getting the cover letter format right is the same as having those coveted cooking skills that can turn the right ingredients into a meal that leaves you wanting more.

Now, if you’re wondering whether your formatting skills are enough to impress recruiters, there’s no need to worry. 

This article is going to show you exactly how to format a cover letter the right way. 

Here’s what we’re going to cover: 

• What Should Go On a Cover Letter?
• How to Format Your Cover Letter
• (Free) Cover Letter Templates You Can Use
• How to Format Your Cover Letter When Sending It Via Email

The Best Cover Letter Format - What Goes on a Cover Letter

Your cover letter’s format is both how your cover letter looks and how it’s structured. 

So, cover letter formatting includes everything from page margins, spacing, and font size to how long your cover letter should be, how many paragraphs it should have, and what each paragraph should contain. 

Pretty substantial, if you ask us - which is exactly why we’ll go over these elements one by one. Before we do, however, let’s first get the essentials out of the way. 

What exactly goes into a cover letter? The short answer is as follows:  

• A header , which contains your contact information and the employer’s or recruiter’s contact information.
• A greeting to the recruiter and the opening paragraph , which you want to use to grab the reader’s attention.
• The body of your cover letter , which is between 1-3 paragraphs.
• A closing paragraph , which usually contains a call to action.
• A formal salutation .

And here’s what that looks like in practice: 

A Look into Your Cover Letter Format, by Section

In theory, all these rules are pretty straightforward...

But if you’ve ever written a cover letter before, you’ll probably agree with us that actually writing one ain’t all that simple.

In this section, we’ll take you through the entire process of creating a cover letter, section by section!

Starting with:

#1. Header 

Your cover letter’s header should contain your contact info, the date, and the hiring manager’s or employer’s contact info. 

If you’re wondering which contact information you should include and which you should leave out, here are the essentials: 

• Full name and professional title (where applicable) 
• Phone number
• Name and professional title of the hiring manager
• Name of the company you’re applying to 
• Company address 

Here’s a visual representation of this: 

If you want to know more about header formatting, such as what you can optionally include and what you should definitely leave out, head over to our guide on how to start a cover letter . 

#2. Greeting 

After listing your contact information, it’s time to address the cover letter . 

First things first: the impersonal and overly popular “To Whom It May Concern” and “Dear Sir/Madam” are yesterday’s news. They’re impersonal and just about every other applicant uses them. 

And you want your cover letter to stand out, right?

So, greet the hiring manager directly, instead. For example: 

Dear Mr. Brown, Dear Mrs. Waldorf,

If, however, you are unsure about their title, gender, marital status, or pronouns, use their entire name to avoid any mistakes, such as: 

Dear Alex Brown, Dear Blair Waldorf,

Alternatively, the recruiter may hold a title, such as Doctor, Professor, or sergeant, or you might be addressing a letter without a contact person. 

In such cases, here are some do-s and don’t-s to keep in mind: 

Dear John Doe, Dear Mr./Mrs. Doe, Dear Dr. Leonard, Dear Rev. Owen, Dear Marketing Hiring Team, Dear Director of Marketing,

To Whom It May Concern, What’s Up Hiring Team, Dear Sir/Madam, Hey John, Hi there Hiring Team,

#3. Opening Paragraph 

The opening paragraph of your cover letter is where the recruiter first gets to really hear your voice. As such, you’ve got to make it count and grab their attention before they move on to the next applicant.  

And how exactly do you do that? Well, for starters, avoid being generic. You don’t want your opening paragraph to sound as if you’re applying to dozens of jobs with the same letter.

Instead, you want your opening paragraph to mention:

• Your name, profession, and years of experience.
• 1-2 of your top achievements (to help you stand out).
• The name of the firm and position you’re applying for.

Here’s what this would look like in a cover letter:

My name is Ellen and I’d like to join Company X as a marketing expert. I believe that my 5+ years of experience as a marketing specialist, as well as my skills in PPC management and copywriting, will help me drive new users to your platform Additionally, I believe that my past experience in the financial industry will help me excel at the role.

Struggling with writing your own cover letter introduction? Check out our guide on how to start a cover letter effectively! 

#4. Cover Letter Body 

The body of your cover letter usually consists of 1-3 paragraphs and is where you convince the recruiter that you're the right person for the job.

We have a few pointers to help you do that:

• Don’t just rehash your CV. The recruiter already read it. Instead, use your cover letter to elaborate on your achievements and back them up with even more evidence. 
• Understand the job requirements. Check the requirements for the position in the job listing, see how you can match them with your strengths and qualifications, and use the body of your cover letter to show you’re a good fit for the job. 
• Research the company. Also important is to show that you match the company’s culture. Read up about the company you’re applying for and learn what’s their product/service, what are they known for, what kind of culture they have, and so on. Then, in your cover letter, mention a bit about the company’s culture and talk about how you’re a good fit.

And here’s hows the body of your cover letter would look like in practice: 

In my previous role as a Marketing Expert, I also handled the company’s Digital Marketing. During the course of one year, I managed the company’s monthly Facebook ad budget, which amounted to $20,000+ and the process of ad creation and management end-to-end. The process involved creating ad copies, images, picking out the targeting, running optimization trials, and so on. 

In addition to Facebook advertising, I am also knowledgeable in other Pay Per Click channels, such as: 

I actually learned a lot about PPC management basics from your company YouTube channel, and really admire how you guys manage your ad accounts. Since I’m already familiar with how Company X handles ads, I believe that I’d be able to really excel at the role.

#5. Closing Paragraph (And a Call to Action) 

Now, how you end a cover letter is just as important as how you start it. 

As you wrap up your cover letter, it’s important to do the following:

• Mention anything that you couldn’t in the previous paragraphs . If you have anything left to say, mention it here. 
• Thank the hiring manager for their time . Good manners go a long way. 
• Finish the cover letter with a call to action . Your cover letter’s last sentence should be a call to action, such as asking the hiring manager to take some sort of action. 

Here’s an example of that: 

In conclusion, thank you for considering my application. I hope I have the chance to help your company take its marketing initiatives to the next level. It would be great to discuss how my experience so far can make that a reality. 

As for your formal salutation, you can use any of the following “tried and tested” greetings: 

• Best Regards,
• Kind Regards,

Cover Letter Format Guide 

We went over what goes in your cover letter section by section. However, how your cover letter looks on the outside is just as important. 

Following some standard formatting tips will show the hiring manager that you took the time and put in the effort to hand in the best version of a cover letter, which is sure to help your case. 

Here are the rules that you need to follow: 

• Keep your cover letter between half and one page in length to make sure the recruiter actually reads the whole thing (if you had to read 100+ cover letters, you’d want applicants to stick to one page too). That’s between 250-400 words long . 
• Use 1 or 1.5 line spacing throughout your text , and double spacing between paragraphs. 
• Go for a simple and readable font and set your font size to 11 or 12 pts . Using custom fonts may seem like a good idea, but there’s no guarantee the hiring manager’s computer will have that specific font installed.
• Save your cover letter in PDF format to make sure the layout stays the same despite the type of software or Operating System (OS) that opens it. 

Or Choose One of Our Cover Letter Templates 

The cover letter is an inseparable part of any application package. As such, you want your cover letter format to be as impeccable as possible. 

And while the formatting rules we’ve listed above aren’t complicated to follow, you’d rather not take any risks with your cover letter format.  

Want to make sure that your cover letter format is impeccable?

Just use a cover letter template!

The format is done for you - all you have to do is fill in the contents. 

Our cover letter templates are well-designed and guaranteed to leave a good impression on the recruiter!

On top of that, all of our templates come with a matching resume template , ensuring that your job application stands out from the rest.

Sending Your Cover Letter Via Email? Here’s How To Do It! 

It’s safe to assume that nowadays, most cover letters are sent via email. That means that you’re probably submitting your email in one of two ways: 

• Sending it as an email attachment.
• Uploading it to the company’s webpage.

If that’s the case, you’re good with the formatting rules listed above. 

If, however, you’re sending your cover letter in the body of the email, here’s what you need to do differently: 

• Write a professional subject line. The best and safest formula is “Name - Position you’re applying to” (e.g. “Helen Simms - Application for Marketing Expert Position”).
• Remove the header. As the hiring manager’s contact details and the date are no longer necessary, remove the header altogether and place your contact information underneath the formal salutation. 
• Look out for typos. Check your cover letter and then double-check it. Typing on a keyboard can be tricky; sometimes, a typo might just be a matter of fast typing. Avoid that by being extra careful. 

And you’re about ready to press “Send.”

Key Takeaways

Your cover letter format is a big part of the impression your job application can make. As such, it’s important to get the formatting right. 

Here are the main points this article covers to achieve that: 

• Make sure to structure your cover letter the right way. 
• Address your cover letter the right way and write an attention-grabbing opening paragraph.
• Wrap up your cover letter with a call to action. 
• Pay attention to the margins, space lining, font size, and cover letter length.
• If you’re sending your cover letter as the body of your email, make sure to tweak the formatting accordingly.  

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Key Elements of a Cover Letter

The cover letter is usually the first item an employer reads from you. Your letter should immediately indicate what position you are applying for and then give information that demonstrates why you should be considered for the position. Do not repeat all of the information contained in your resume. Instead, highlight or elaborate on resume items that are directly applicable to the position for which you are applying. The following information should be included in your cover letter.

Information about you

Begin your cover letter with your contact information. It should be in block style, on the left margin of your paper, towards the top. Name Current home address Telephone number

Include a date as you would do with any business letter.

Contact Person's Name, Title, Employer, and Address

Including a specific name can get your letter and resume to the hiring manager more quickly and can be an effective personal touch. If you are applying for an advertised position that does not give a name to contact, call the company and ask for the department manager's name.

Choose the appropriate way to address the contact person. For example: Dear Mr. Johns (if a man's name is the contact) Dear Ms. Smith (if a woman's name is the contact) Dear Prospective Employer (if there is no contact name)  

Opening Paragraph

In the opening paragraph tell how you learned about the position. You may, for example, know of a job through: a classified advertisement an unsolicited mailing the Internet personal referrals

Middle Paragraph

This paragraph gives a summary of your background and critical skills (hard skills) that make you qualified for the position.

Second Middle Paragraph

This paragraph can be used to demonstrate your persuasive skills (soft skills).

Contact Information and Closing

At the end of the letter talk about your availability for the job, where you can be contacted, and when you are going to contact the hiring person for an appointment to discuss your application. If you have no contact name you may simply want to indicate your anticipation for a response in this part of the letter. Thank the person to whom you are writing for his/her time and consideration of your application.

Other Considerations:

Paper and Printing

• Use white or ivory (20-25 lb.), 8 ½ x 11 bond paper printed on one side only.
• Use the same paper for resume, cover letter, and envelopes if possible.
• Make sure that there is no shadowing or dirty marks from your printer on the papers.

Error Prevention

• Follow instructions in employment ads or recruitment directions.
• Proofread! Look for spelling and formatting errors. Make sure recipient's name, company name, and title are correctly spelled in the letter and on the envelope.
• Proofread again!
• Have another person proofread your letter and resume.
• Be sure there are no errors of fact.
• Sign in blue or black ink.
• Keep a copy of the cover letter and resume for your records.
• Follow up with a phone call, about five days after expected delivery.

Layout and Design

• Follow standard cover letter format.
• Keep the cover letter to one page.
• Set margins at 1 ½”.
• Use a simple, easy to read font style, 10-14 point. (Times, Courier, or Helvetica)
• Use boldface, italics, all-caps and underlining, but don't overdo it.

Planning and Tone

• Tailor each cover letter to one specific position.
• Use industry jargon specific to your career field.
• Identify the employer's key words and use them.
• Make all statements positive. Check the tone by asking yourself if each sentence leaves a positive impression.
• Show originality but not cuteness.
• Use action verbs and phrases .
• Sound determined and confident not desperate.
• Organize context in a reasonable and logical order.
• Use correct grammar.
• Keep sentences short.
• Keep paragraphs short.
• Use short words and simple language.
• Make every word count.
• Punctuate using commas, dashes, and periods.
• Focus on the employer's need for a worker, rather than your need for a job.
• Tell how your skills and personal qualities match the employer's needs.
• Focus on what you can do for the employer and how you contribute to the organization.
• Show you have researched the company double check those facts.
• Be specific avoid general statements.

The Complete Guide: What Is a Cover Letter for a Job ?

When planning to apply for a job, an applicant needs to wrap up all his work experience, accomplishments, and skills in a professional job application. However, only having a bot-beating resume is not enough to impress recruiting firms and potential employers. To jump-start your career, you also need a killer cover letter.

If you’re wondering what is cover letter, it is a document that complements your resume and introduces your personality to a recruiter, meanwhile demonstrating what makes you a perfect candidate.

In this article, we’ll help you understand what is a cover letter for jobs and why it matters.

Skillhub tip: A great cover letter makes the hiring process easier. If you’re not sure about how to make one - seek help from a cover letter writing service online .

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What Is a Cover Letter for a Resume?

What is the purpose of a cover letter? In short, its purpose is to help you land an interview. Though it’s sometimes optional, a cover letter has many benefits. It dives into details you can’t provide in your resume, helping you show your full potential to employers.

Simply put, good cover letter examples boost the likelihood of you getting employed faster. Every career advice expert will confirm that companies are more likely to hire humans who attach a solid cover letter to their applications. That’s why it makes perfect sense to put in the extra effort to write a good cover letter.

What to Include in Your Cover Letter?

One of the biggest puzzles job seekers face is what should be in a cover letter. It indeed can be compared to a puzzle. The best cover letter examples are made up of tiny bits that, once put together in a proper manner, shape the whole.

So, what is included in a cover letter? Every solid document should contain the following:

Great creative cover letter opening sentence examples include a hook, focusing on the company that may potentially employ you or on a relevant professional accomplishment. If it drives the recruiter’s attention and relates to the job, it will work!

I have long been inspired by Company X’s exceptional web development projects, so I was excited to discover a newly-opened position for a Web Developer . I believe I can be a valuable addition to the Company X team.

Stunning Pitch

Next, all cover letter examples for job should include a pitch explaining what makes you right for the job.

In my current role as a Web Developer at Company Y, I gained hands-on experience developing user-friendly applications and websites. One of the recent projects I’ve worked on was an application for an event management agency for which I managed to:

• Reduce the time-to-market time by 15%
• Help the client boost their event signups by 40%
• Ensure the excellent user experience

Closing Line

The last element in your examples of a cover letter should be a clear, friendly, and effective closing statement with a formal thank you for time and a call to action that encourages the hiring manager to contact you.

Thank you for considering my application. I would be happy to discuss your company’s Web Development challenges and show how my skills and knowledge can help solve them. Please reach me via email ([email protected]) or phone (000-000-0000).

Other Essential Things to Include in Cover Letter

Additionally, all great cover letter examples should include one more thing - a brief, sincere explanation of your motivation to join a particular company.

One thing I’m impressed with the most about Company X is how you foster creativity and thinking outside the box. I am an old fan of your team’s projects and, thus, it would be a dream come true to join in. I also appreciate the friendly and open-minded atmosphere inside your team and share your company’s values.

If you are looking for an opportunity to catch a break during a long job search, then you might like our best resume builder service online that can provide one. You'll be able to enjoy the work of reliable professional writers as well as some easy-to-use pre-cooked content for the future.

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What Cover Letter Types Are There?

Now that you know what is a cover letter for resume, you also need to know that there are multiple types of this document.

Below, we will give a small intro on each type to help you see the difference.

Application Cover Letter

An application cover letter is used when you have a specific job in mind. It typically addresses the recruitment professional and is submitted with a resume. The goal of the application cover letter is to show what makes you an ideal candidate for the job and help land an interview.

I’ve long been interested in the business activity of Company X. I’m excited for the opportunity to apply for the Graphic Designer position with your company and confident I could be a perfect asset.

Referral Cover Letter

This kind of cover letter should be used by a candidate who was referred to a job. If that’s your case, you should indicate the full name of your referral within the first few lines of your referral cover letter in order to drive the attention of the hiring manager.

[Referral’s Name], head of sales at Company X, suggested that I get in touch with you directly concerning my interest in applying for the role of Web Developer in your company.

Letter of Interest

A letter of interest is perfect for the occasions when you are interested in working with a certain company that may not currently have any job postings. It’s used to let the organization know about your interest so that they would keep you in mind as a potential employee. See the letter of interest example below.

I have been long monitoring Company X’s innovative projects and would like to inquire whether you have any Web Development positions open.

Networking Cover Letter

Unlike other types, a networking cover letter doesn’t necessarily address a recruiter but rather any professional contact you’ve made through industry events, social media, past jobs, etc. It is written to ask for open positions, referrals, or job search advice.

First, congratulations on completing your project with Company X last month. I found it extremely innovative and interesting! I’m writing to express my admiration and ask for job search advice as I am now looking for a new career opportunity.

Prospecting Cover Letter

A prospecting cover letter is used to express your desire to work with a company due to the certain features it has, for example, an excellent reputation on the job market, outstanding culture, etc. It is used to get into that company’s talent pool.

After hearing your CEO’s speech at the TED conference, I was impressed to discover your unique culture that keeps talent and creativity at the core and would love to become a part of your Web Development team.

Value Proposition Letter

The last type of cover letter is used to apply for a position by showing what value you can add to a company. Basically, a value proposition letter is like a resume summary that tells about your professionalism , experience, and level of qualification.

Do you need an experienced Web Developer with an excellent sense of trends?

As a developer with 5+ years of experience and 200+ completed projects, I believe I could bring real value to Company X’s development team.

Wrapping Up

Hopefully, after reading this article, you have a better understanding of what is cover letter.

Let’s quickly recap the key points:

• A cover letter is a document that supplements your job application by providing additional details that are not given in a resume;
• There are 6 different types of cover letters that serve different purposes;
• Applicants should have a good cover letter to get more interviews and land a job faster and easier;
• Cover letters consist of the opening statement, pitch, and closing line;
• A perfect cover letter should be to-the-point, professional, and use the right tone of voice.

Do you have any additional questions about what is cover letter for a job?

Give us a shout on social media! We are always happy to give you a hand of help! Keep in mind professional resume writer service never let you down!

If you want more about what is a cover letter, visit this link .

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How To Write a Cover Letter With Examples

Cover letters can help differentiate you from other job applicants and be the determining factor of landing your dream job. By taking the time to craft a custom cover letter, a single sheet of paper can help communicate all the human elements that a resume may fall short of capturing about yourself. 

But what do employers and recruiters have to say about how to write a cover letter? What are the best tips they have to offer for graduate students who are writing a cover letter?

We asked 11 employers for their best cover letter tips. Here is what they had to share.

Let it Set the Stage

In many ways, cover letters should provide background information and context to your resume, while simultaneously addressing how that resume addresses the specific requirements of the job opportunity. The cover letter is your opportunity to "set the stage" and to convince the hiring manager why your specific set of skills, experiences and interests will provide value to their team and its objectives.

Andrew Horrigan '11 BSBA (Management Information Systems), Product Manager at Cisco

Research the Hiring Manager

If possible, find out who the hiring manager is and look them up on LinkedIn. Do your research on the company you're applying for. What's their mission statement and how do they portray their company culture? Hopefully what you're looking for in a job is reflected by those things. Make sure the hiring manager knows that and understands who you are and what drives you. A resume is often about as robotic as things can be. Make sure your cover letter is the opposite—personalize it and let yourself shine through.

Joshua Schlag ’05 BS (Computer Science) ’11 MBA, Digital Marketing Manager at Pyramid Analytics

Utilize Career Development Resources

The University of Arizona and Eller College of Management go to great lengths to make sure students are prepared for their impending career journey. Because cover letters are so important to getting your foot in the door, there are several career development resources online and on campus to take advantage of. The university’s cover letter builder serves as a nice template to get started. And of course, it never hurts to make an appointment with an Eller Career Coach through eSMS to have a professional review your letter before submission. 

Brett Farmiloe, ’06 BSBA (Accounting), Founder, Featured

Discover Past Samples of the Position

Do your research on the company and personalize your cover letter to the role for which you are applying. Don't be afraid to Google, "How to write a good cover letter for X position." Seriously, it helps! There is so much information out there from various perspectives—applicants, hiring managers, etc. Most importantly be yourself and let your personality come through. And don't forget to spell check!

Mariam Nikola '17 MS MIS, Consultant at Point B

Highlight Your Soft Skills

When writing a professional cover letter, there are a couple things you can do to set yourself apart from the pack. First, make sure you tailor your letter to the specific position you are applying for. This should not be a general, "one size fits all" letter—be sure to discuss specific details surrounding the role or the company itself. Secondly, this is an opportunity for you to show a little bit of your personality. Obviously, you want to remain professional, but this is a great time to highlight some of your soft skills that might not be fully conveyed through your resume.  

Brian Ellis ’17 BSBA (Management), Staffing Manager at Randstad Office and Administrative Professionals

Fill in the “Why” Gaps

As a talent advisor, I review a lot of applicants and agree that a cover letter can be a great way to stand apart, if it is done correctly. A great cover letter for me covers the ‘why’ that I cannot understand from just a resume alone. It should clearly state why you are interested in the role, what your goals are for utilizing your graduate degree (if recently graduated) and explain any career pivots reflected on your resume. If you answer those questions in a direct, concise manner it will add value to your application.

Monica Larson , ’11 BSBA (Marketing) ‘20 MBA, Talent Advisor

Tell Your Story

A cover letter is your opportunity to tell your story—tying your experience and personal interests into why you want a position and why you are the best candidate for it. Paint the picture of your journey and what about the position excites you personally and professionally. Similar to your resume, keep it short and sweet. No need to repeat what’s already on your resume. Recruiters and hiring managers don’t have time to comb through a novel, so you need to engage them with as few words as possible while also grabbing their attention.

Kelly Castoro, ’06 BA (Spanish, Portuguese), Project Manager at Squarespace

Tailor Each Cover Letter to the Position You Are Applying

Be sure to research the role and customize your cover letter for each position, relating your experience to the particular role you are applying for. Personalization is key—research who you are sending the cover letter to and address the letter to them directly. End your letter with a call to action, stating you will follow up by phone or email if you haven’t heard from anyone. Follow ups are very important! 

Jessica Rosenzweig, ’15 BSBA (Business Management), Account Manager at PeopleWare Staffing

Communicate Bankability and Personality 

Your cover letter answers two crucial questions; are you bankable and are you someone the company will enjoy working with? Communicate bankability with your knowledge of the company, industry and why your skills, capabilities and interests are a great fit. Share your passion for their mission, culture, brand—whatever excites you about becoming a member of their team.  

When conveyed through a concise, well-formulated, well-worded cover letter, you demonstrate the ability to write an effective business case—communicating that you are a ready professional and worthy teammate who will hit the ground running.

Theresa L Garcia, ’83 BSBA (Human Resources), Senior Change Management and Organization Capability Consultant at Boeing

Keep it Concise but Compelling

A cover letter is your chance to speak directly to the hiring team and tell them why you are not only the best match for the position for which you are applying but also give them additional insight into yourself as an individual that is less visible from your experience.

A great cover letter should be attention grabbing and touch upon the qualities that make you stand out from others in the applicant pool, highlight both your recent and most distinguished accomplishments and drive home why you are the right person for the job. Professionalism is always important, but don’t be hesitant to put your voice into the letter to let your personality shine through. Research the company, understand where they currently are, where they are going and show why you are the right person to get them from point A to point B. Recruiters spend a lot of time reviewing applicants and making yourself stand apart from the crowd is key. Keep it concise but compelling!

Matt Reineberg, ’14 BSBA (Marketing), Senior Talent Acquisition Sourcer at Cox Enterprises

Highlight the “Why”

Why are you applying to this company? Why do you want this position? Your cover letter should aim to answer the why behind applying for the job. Conveying an interest and excitement for working specifically for this job at this company, rather than a desire to get any job anywhere that will give you money, can go a long way. Show the company that they should hire you and your passion over someone that might have the skills needed for the job, but doesn’t care about the work as much as you do. 

Ryan Nouis, Trupath 

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When my mom passed away in 2012, my dad started to decline quickly, and my brother and I had to go through my parents’ bills and finances.

Both my mom and dad worked great jobs for 50 years, but they were never in the top tax bracket. My mom taught English at the local state college (Cal Northridge), and my dad owned a shoe store.

I don’t know exactly how much they made every year, but in today’s dollars, it was probably not more than $150,000 as a couple. So, my brother and I were surprised when we saw the size of our parents' retirement savings. It was an order of magnitude bigger than you’d expect for a couple making their income. And when we finished going over their estate, we learned why: My parents' investments.

My dad had always been an enthusiastic investor. He encouraged me to buy my first stock (the DuPont chemical company) as a teenager. My dad invested because he knew that whatever money he put in the bond or stock markets would likely grow faster than in the bank. And he was right.

I went back and did the math. If my parents had $1,000 to invest in 1960, and they put that money in the S&P 500, then by the time they’d reached retirement age in 1990, the $1,000 would be worth nearly $20,000. 1 That’s more than double what they would have earned if they’d just put the money in a bank account. My dad passed away a few months after my mom, in his late 80s. But both my parents could have lived beyond 100 and comfortably afforded it.

Why am I writing about my parents? Because going over their finances showed me something about my own career in finance. I had been working at BlackRock for almost 25 years by the time I lost my mom and dad, but the experience reminded me — in a new and very personal way — why my business partners and I founded BlackRock in the first place.

Obviously, we were ambitious entrepreneurs, and we wanted to build a big, successful company. But we also wanted to help people retire like my parents did. That’s why we started an asset manager — a company that helps people invest in the capital markets — because we believed participating in those markets was going to be crucial for people who wanted to retire comfortably and financially secure.

We also believed the capital markets would become a bigger and bigger part of the global economy. If more people could invest in the capital markets, it would create a virtuous economic cycle, fueling growth for companies and countries, which would, in turn, generate wealth for millions more people.

My parents lived their final years with dignity and financial freedom. Most people don’t have that chance. But they can. The same kinds of markets that helped my parents in their time can help others in our time.  Indeed, I think the growth- and prosperity-generating power of the   capital markets will remain a dominant economic trend through the rest of the 21 st  Century.

This letter attempts to explain why.

I had been working at BlackRock for almost 25 years by the time I lost my mom and dad, but the experience reminded me — in a new and very personal way — why my business partners and I founded BlackRock in the first place.

A brief (and admittedly incomplete) history of U.S. capital markets

In finance, there are two basic ways to get or grow money.

One is the bank, which is what most people historically relied on. They deposited their savings to earn interest or took out loans to buy a home or expand their business. But over time a second avenue for financing arose, particularly in the U.S., with the growth of the capital markets: Publicly traded stocks, bonds, and other securities.

I saw this firsthand in the late 1970s and early 1980s when I played a role in the creation of the securitization market for mortgages.

Before the 1970s, most people secured financing for their homes the same way they did in the Christmas classic It’s a Wonderful Life — through the Building & Loan (B&L). Customers deposited their savings into the B&L, which was essentially a bank. Then that bank would turn around and lend out those savings in the form of mortgages.

In the movie — and in real life — everything works fine until people start lining up at the bank’s front door asking for their deposits back. As Jimmy Stewart explained in the film, the bank didn’t have their money. It was tied up in somebody else’s house.

After the Great Depression, B&Ls morphed into savings & loans (S&Ls), which had their own crisis in the 1980s. Approximately half of the outstanding home mortgages in the U.S. were held by S&Ls in 1980, and poor risk management and loose lending practices led to a raft of failures costing U.S. taxpayers more than $100 billion dollars. 2

But the S&L crisis didn’t cause the American economy lasting damage. Why? Because at the same time the S&Ls were collapsing another method of financing was getting stronger. The capital markets were providing an avenue to channel capital back to challenged real estate markets.

This was mortgage securitization.

Securitization allowed banks not just to make mortgages but to sell them. By selling mortgages, banks could better manage risk on their balance sheets and have capital to lend to home buyers, which is why the S&L crisis didn’t severely impact American homeownership. 

Eventually, the excesses of mortgage securitization contributed to the crash in 2008, and unlike the S&L crisis, the Great Recession did harm home ownership in the U.S. The country still hasn’t fully recovered in that respect. But the broader underlying trend — the expansion of the capital markets — was still very helpful for the American economy.

In fact, it’s worth considering: Why did the U.S. rebound from 2008 faster than almost any other developed nation? 3

A big part of the answer is the country’s capital markets .

In Europe, where most assets were kept in banks, economies froze as banks were forced to shrink their balance sheets. Of course, U.S. banks had to tighten capital standards and pull back from lending as well. But because the U.S. had a more robust secondary pool of money – the capital markets — the nation was able to recover much more quickly.

Today public equities and bonds provide over 70% of financing for non-financial corporations in the U.S. – more than any other country in the world. In China, for example, the bank-to-capital market ratio is almost flipped. Chinese companies rely on bank loans for 65% of their financing. 4

In my opinion, this is the most important lesson in recent economic history:  Countries aiming for prosperity don’t just need strong banking systems — they also need strong capital markets.

That lesson is now spreading around the world.

Replicating the success of America’s capital markets

Last year, I spent a lot of days on the road, logging visits to 17 different countries. I met with clients and employees. I also met with many policymakers and heads of state, and during those meetings, the most frequent conversation I had was about the capital markets.

More and more countries recognize the power of American capital markets and want to build their own.

Of course, many countries do have capital markets already. There are something like 80 stock exchanges around the world, everywhere from Kuala Lumpur to Johannesburg. 5  But most of these are rather small, with little investment. They’re not as robust as the markets in the U.S., and that’s what other nations are increasingly looking for.

In Saudi Arabia, for example, the government is interested in building a market for mortgage securitization, while Japan and India want to give people new places to put their savings. Today, in Japan, it’s mostly the bank. In India, it’s often in gold.

When I visited India in November, I met policymakers who lamented their fellow citizens’ fondness for gold. The commodity has underperformed the Indian stock market, proving a subpar investment for individual investors. Nor has investing in gold helped the country’s economy.

Compare investing in gold with, let’s say, investing in a new house. When you buy a home, that creates an economic multiplier effect because you need to furnish and repair the house. Maybe you have a family and fill the house with children. All that generates economic activity. Even when someone puts their money in a bank, there’s a multiplier effect because the bank can use that money to fund a mortgage. But gold? It just sits in a safe. It can be a good store of value, but gold doesn’t generate economic growth.

This is a small illustration — but a good one — of what countries want to accomplish with robust capital markets. (Or rather, of what they  can’t accomplish without them.)

Despite the anti-capitalist strain in our modern politics, most world leaders still see the obvious: No other force can lift more people from poverty or improve quality of life quite like capitalism. No other economic model can help us achieve our highest hopes for financial freedom — whether we want it for ourselves or our country.

That’s why the capital markets will be key to addressing two of the mid-21 st Century’s biggest economic challenges.

• The first is providing people what my parents built over time — a secure, well-earned retirement. This is a much harder proposition than it was 30 years ago. And it’ll be a much harder proposition 30 years from now . People are living longer lives. They’ll need more money. The capital markets can provide it — so long as governments and companies help people invest.
• A second challenge is infrastructure. How are we going to build the massive amount the world needs? As countries decarbonize and digitize their economies, they’re supercharging demand for all sorts of infrastructure, from telecom networks to new ways to generate power. In fact, in my nearly 50 years in finance, I’ve never seen more demand for energy infrastructure. And that’s because many countries have twin aims: They want to transition to lower-carbon sources of power while also achieving energy security. The capital markets can help countries meet their energy goals, including decarbonization, in an affordable way.

[Retirement] is a much harder proposition than it was 30 years ago. And it’ll be a much harder proposition 30 years from now .

Asking the old age question: How do we afford longer lives?

Last year, Japan passed a demographic milestone. The country’s population has been aging since the early 1990s as the pool of working-age people has shrunk and the number of elderly has risen. But 2023 was the first time that 10% of their people exceeded 80 years old, 6 making Japan the “oldest country in the world” according to the United Nations. 7

This is part of the reason the Japanese government is making a push for retirement investment.

Most Japanese keep the bulk of their retirement savings in banks, earning a low interest rate. It wasn’t such a bad strategy when Japan was suffering from deflation, but now the country’s economy has turned around, with the NIKKEI surging past 40,000 for the first time this month (March 2024). 8

Most aspiring retirees are missing out on the upswing. The country didn’t have anything resembling a 401(k) program until 2001, but even then, the amount of income people could contribute was quite low. So a decade ago, the government launched the Nippon Individual Savings Accounts (NISA) to encourage people to invest even more in retirement. Now they’re trying to double NISA’s enrollment. The goal is 34 million Japanese investors before the end of the decade. 9 It will require the Japanese government to expand their capital markets, which historically had very little retail participation.

Japan isn’t alone in helping more of its citizens invest for retirement. BlackRock has a joint venture — Jio BlackRock — with Jio Financial Services, an affiliate of India’s Reliance Industries. Over the past 10 years, India has built a huge digital public infrastructure network that connects nearly one billion Indians to everything from healthcare to government payments via their smartphones. Jio BlackRock’s goal is to use the same infrastructure to deliver retirement investing (and more).

After all, India is aging, too. The whole world is, albeit at different speeds. Brazil will start seeing more people leave its workforce than enter it by 2035; Mexico will reach peak workforce by 2040; India sometime around 2050.

As populations age, building retirement savings has never been more urgent

Source: Working-age population (ages 15-64): UN “medium trend 10

By the mid-century mark, one-in-six people globally will be over the age of 65, up from one-in-11 in 2019. 11 To support them, governments are going to have to prioritize building out robust capital markets like the U.S. has.

But this isn’t to say the U.S. retirement system is perfect. I’m not sure anybody believes that. The retirement system in America needs modernizing, at the very least.

Rethinking retirement in the United States

This was particularly clear last year as the biotech industry pumped out a rush of new, life-extending drugs. Obesity, for example, can take more than 10 years off someone’s life expectancy, which is why some researchers think that new pharmaceuticals like Ozempic and Wegovy can be life-extending drugs, not just weight-loss drugs. 12 In fact, a recent study shows that semaglutide, the generic name for Ozempic, can give people with cardiovascular disease an extra two years of life where they don’t suffer a major condition like a heart attack. 13

We focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years.

These drugs are breakthroughs. But they underscore a frustrating irony: As a society, we focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years.

It wasn’t always this way. One reason my parents had a financially secure retirement was CalPERS, California’s state pension system. As a public university employee, my mom could enroll. But pension enrollment has been declining across the country since the 1980s. 14 Meanwhile the federal government has prioritized maintaining entitlement benefits for people my age (I’m 71) even though it might mean that Social Security will struggle to meet its full obligations when younger workers retire.

It’s no wonder younger generations, Millennials and Gen Z, are so economically anxious. They believe my generation — the Baby Boomers — have focused on their own financial well-being to the detriment of who comes next. And in the case of retirement, they’re right.

Today in America, the retirement message that the government and companies tell their workers is effectively: “You’re on your own.” And before my generation fully disappears from positions of corporate and political leadership, we have an obligation to change that.

Maybe once a decade, the U.S. faces a problem so big and urgent that government and corporate leaders stop business as usual. They step out of their silos and sit around the same table to find a solution. I participated in something like this after 2008, when the government needed to find a way to unwind the toxic assets from the mortgage crisis. More recently, tech CEOs and the federal government came together to address the fragility of America’s semiconductor supply chain. We need to do something similar for the retirement crisis. America needs an organized, high-level effort to ensure that future generations can live out their final years with dignity.

What should that national effort do? I don’t have all the answers. But what I do have is some data and the beginnings of a few ideas from BlackRock’s work. Because our core business is retirement.

More than half the assets BlackRock manages are for retirement. 15 We help about 35 million Americans invest for life after work, 16 which amounts to about a quarter of the country’s workers. 17 Many are educators like my mom was. BlackRock helps manage pension assets for roughly half of U.S. public school teachers. 18 And this work — and our similar work around the globe — has given us some insight into how a national initiative to modernize retirement might begin.

We think the conversation starts by looking at the challenge through three different lenses. 

• What’s the issue from the perspective of a current worker , someone who’s still trying to save for retirement?
• What about someone who has already retired? We have to look at the problem from the retiree’s point of view­­­­­­­­­­ — an individual who has already saved enough to stop working but is worried the money will run out.
• But first it’s important to look at retirement in America like you’d look at a map of America — a high-level picture of the problem, the kind a national policymaker might look at. What’s the issue for the population as a whole? (It’s demographics.)

[Young people] believe my generation — the Baby Boomers — have focused on their own financial well-being to the detriment of who comes next. And in the case of retirement, they’re right.

The demographics don’t lie

There’s a popular saying in economics: “You just can’t fight demographics.” And yet, when it comes to retirement, the U.S. is trying anyway.

In wealthy countries, most retirement systems have three pillars. One is what people invest personally (my dad putting his money in the stock market). Another is the plans provided by employers (my mom’s CalPERS pension). A third component is what we hear politicians mostly talking about – the government safety net. In the U.S., this is Social Security.

You’re probably familiar with the economics behind Social Security. During your working years, the government takes a portion of your income, then after you retire, it sends you a check every month. The idea actually originates from pre-World War I Germany, and these “old-age insurance” programs gradually became popular over the 20 th Century largely because the demographics made sense.

Think about someone who was 65 years old in 1952, the year I was born. If he hadn’t retired already, that person was probably getting ready to stop working.

But now think about that person’s former colleagues, all the people around his age who he’d entered the workforce with back in the 1910s. The data shows that in 1952, most of those people were not preparing for retirement because they’d already passed away .

This is how the Social Security program functioned: More than half the people who worked and paid into the system never lived to retire and be paid from the system. 19

Today, these demographics have completely unraveled, and this unraveling is obviously a wonderful thing. We should want more people to live more years. But we can’t overlook the massive impact on the country’s retirement system.

It’s not just that more people are retiring in America; it’s also that their retirements are increasing in length. Today, if you’re married and both you and your spouse are over the age of 65, there’s a 50/50 chance at least one of you will be receiving a Social Security check until you’re 90. 20

All this is putting the U.S. retirement system under immense strain. The Social Security Administration itself says that by 2034, it won’t be able to pay people their full benefits. 21

What’s the solution here? No one should have to work longer than they want to. But I do think it’s a bit crazy that our anchor idea for the right retirement age — 65 years old — originates from the time of the Ottoman Empire.

Humanity has changed over the past 120 years. So must our conception of retirement.

One nation that’s rethought retirement is the Netherlands. In order to keep their state pension affordable, the Dutch decided more than 10 years ago to gradually raise the retirement age. It will now automatically adjust as the country’s life expectancy changes. 22

Obviously, implementing this policy elsewhere would be a massive political undertaking. But my point is that we should start having the conversation . When people are regularly living past 90, what should the average retirement age be?

Or rather than pushing back when people receive retirement benefits, perhaps there’s a more politically palatable idea: How do we encourage more people who wish to work longer with carrots rather than sticks? What if the government and the private sector treated 60-plus year-olds as late-career workers with much to offer rather than people who should retire?

One way Japan has managed its aging economy is by doing exactly this. They’ve found new ways to boost the labor force participation rate, a metric that has been declining in the U.S. since the early 2000s. 23 It’s worth asking: How can America stop (or at least, slow) that trend?

Again, I’m not pretending to have the answers. Despite BlackRock’s success helping millions retire, these questions are going to have to be posed to a broader range of investors, retirees, policymakers, and others. Over the next few months, BlackRock will be announcing a series of partnerships and initiatives to do just that, and I invite you to join us.

For workers, make investing (almost) automatic

When the U.S. Census Bureau released its regular survey of consumer finances in 2022, nearly half of Americans aged 55 to 65 reported not having a single dollar saved in personal retirement accounts. 24 Nothing in a pension. Zero in an IRA or 401(k).

Why? Well, the first barrier to retirement investing is affordability.

Four-in-10 Americans don’t have $400 to spare to cover an emergency like a car repair or hospital visit. 25 Who is going to invest money for a retirement 30 years away if they don’t have cash for today? No one. That’s why BlackRock’s foundation has worked with a group of nonprofits to set up an Emergency Savings Initiative. The program has helped mostly low-income Americans put away a total of $2 billion in new liquid savings. 26

Studies show that when people have emergency savings, they’re 70% more likely to invest for retirement. 27 But this is where workers run into another barrier: Investing is complex even if you can afford it.

No one is born a natural investor. It’s important to say that because sometimes in the financial services industry we imply the opposite. We make it seem like saving for retirement can be a simple task, something anyone can do with a bit of practice, like driving your car to work. Just grab your keys and hop in the driver’s seat. But financing retirement isn’t so intuitive. The better analogy is if someone dropped a bunch of engine and auto parts in your driveway and said, “Figure it out.”

At BlackRock, we’ve tried to make the investing process more intuitive by inventing simpler products like target date funds. They only require people to make one decision: What year do they expect to retire? Once people choose their “target date,” the fund automatically adjusts their portfolio, shifting from higher-return equities to less risky bonds as retirement approaches. 28

In 2023, BlackRock expanded the types of target date ETFs we offer so people can more easily buy them even if they don’t work for employers offering a retirement plan. There are 57 million people like this in America — farmers, gig workers, restaurant employees, independent contractors — who don’t have access to a defined contribution plan. 29 And while better investment products can help, there are limits to what something like a target date fund can do. Indeed, for most people, the data shows that the hardest part of retirement investing is just getting started.

Other nations make things simpler for their part-time and contract workers. In Australia, employers must contribute a portion of income for every worker between the ages of 18 and 70 into a retirement account, which then belongs to the employee. The Superannuation Guarantee was introduced in 1992 when the country seemed like it was on the path to a retirement crisis. Thirty-two years later, Australians likely have more retirement savings per capita than any other country. The nation has the world’s 54 th largest population, 30 but the 4 th largest retirement system. 31

Of course, every country is different, so every retirement system should be different. But Australia’s experience with Supers could be a good model for American policymakers to study and build on. Some already are. There are about 20 U.S. states — like Colorado and Virginia — that have instituted retirement systems to cover all workers like Australia does, even if they’re gig or part-time. 32

It’s a good thing that legislators are proposing different bills and states are becoming “laboratories of retirement.” More should consider it. The benefits could be enormous for individual retirees. These new programs could also help the U.S. ensure the long-term solvency of Social Security. That’s what Australia found — their Superannuation Guarantee relieved the financial tension in their country’s public pension program. 33

But what about workers who do have access to an employer retirement plan? They need support too.

Even among employees who have access to employer plans, 17% don’t enroll in them, and the hypothesis among retirement experts is this is not a conscious choice. People are just busy.

It sounds trivial, but even the hour or so it takes someone to look through their work email inbox for the correct link to their company’s retirement system, and then select the percentage of their income they want to contribute can be the unclearable hurdle. That’s why companies should make a conscious effort to look at what their default option is. Are people automatically enrolled in a plan or not? And how much are they auto-enrolled to contribute? Is it a minimum percentage of their income? Or the maximum?

In 2017, the University of Chicago economist Richard Thaler won the Nobel Prize, in part, for his pioneering work around “nudges” — small changes in policy that can have enormous impact in people’s financial lives. Auto-enrollment is one of them. Studies show that the simple step of making enrollment automatic increases retirement plan participation by nearly 50%. 34

As a nation, we should do everything we can to make retirement investing more automatic for workers. And there are already bright spots. Next year, a new federal law will kick in, requiring employers that set up new 401(k) plans to auto-enroll their new workers. Plus, there are hundreds of major companies (including BlackRock) that have already taken this step voluntarily.

But firms can do even more to improve their employee’s financial lives, such as providing some level of matching funds for retirement plans and offering more financial education on the tremendous long-term difference between contributing a small percentage of your income to retirement versus the maximum. I also think we should make it easier for workers to transfer their 401(k) savings when they switch jobs. There is a menu of options here, and we need to explore all of them.

For retirees, help them spend what they saved

In 2018, BlackRock commissioned a study of 1,150 American retirees. When we dug into the data, we found something unexpected — even paradoxical.

The survey showed that after nearly two decades of retirement, the average person still had 80% of their pre-retirement money saved. We’re talking about people who were probably between the ages of 75 and 95. If they had invested for retirement, they were likely sitting on more than enough money for the rest of their lives. And yet the data also showed that they were anxious about their finances. Only 32% reported feeling comfortable about spending what they saved. 35

This retirement paradox has a simple explanation: Even people who know how to save for retirement still don’t know how to spend for it.

In the U.S., this problem’s roots stretch back more than four decades when employers began switching from defined benefit plans — pensions — to defined contribution plans like 401(k)s.

In a lot of ways, pensions were much simpler than the 401(k). You had a job somewhere for 20 or 30 years. Then when you retired, your pension paid you a set amount — a defined benefit — every month.

When I entered the workforce in the 1970s, 38% of Americans had one of these defined benefit plans, but by 2008 the percentage had been cut almost in half. 36 Meanwhile, the fraction of Americans with defined contribution plans almost quadrupled. 37

This should have been a good thing. Beginning with the Baby Boomers, fewer and fewer workers spent their entire careers in one place, meaning they needed a retirement option that would follow them from job to job. In theory, 401(k)s did that. But in practice? Not really.

Anyone who’s switched jobs knows how unintuitive it is to transfer your retirement savings. In fact, studies show that about 40% of employees cash out their 401(k)s when they switch jobs, putting themselves back at the starting line for retirement savings. 38

The real drawback of defined contribution was that it removed most of the retirement responsibility from employers and put it squarely on the shoulders of the employees themselves. With pensions, companies had a very clear obligation to their workers. Their retirement money was a financial liability on the corporate balance sheet. Companies knew they’d have to write a check every month to each one of their retirees. But defined contribution plans ended that, forcing retirees to trade a steady stream of income for an impossible math problem.

Because most defined contribution accounts don’t come with instructions for how much you can take out every month, individual savers first must build up a nest-egg, then spend down at a rate that will last them the rest of their lives. But who really knows how long that will be?

Put simply, the shift from defined benefit to defined contribution has been, for most people, a shift from financial certainty to financial un certainty .

That’s why around the same time we saw the data that retirees were nervous about spending their savings, we started wondering: Was there something we can do about it? Could we develop an investment strategy that provided the flexibility of a 401(k) investment but also the potential for a predictable, paycheck-like income stream, similar to a pension?

It turns out, we could. That strategy is called LifePath Paycheck™, which will go live in April. As I write this, 14 retirement plan sponsors are planning to make LifePath Paycheck™ available to 500,000 employees. I believe it will one day be the most used investment strategy in defined contribution plans.

We’re talking about a revolution in retirement. And while it may happen in the U.S. first, eventually other countries will benefit from the innovation as well. At least, that is my hope. Because while retirement is mainly a saving challenge, the data is clear: It’s a spending one too.

Fear vs. hope

Before I conclude this section on retirement, I want to share a few words about one of the largest barriers to investing for the future. In my view, it’s not just affordability or complexity or the fact that people are too busy to enroll in their employer’s plan.

Arguably the biggest barrier to investing for retirement — or for anything — is fear.

In finance, we sometimes think of “fear” as a fuzzy, emotional concept — not as a hard economic data point. But that’s what it is. Fear is as important and actionable a metric as GDP. After all, investment (or lack thereof) is just a measure of fear because no one lets their money sit in a stock or a bond for 30 or 40 years if they’re afraid the future is going to be worse than the present. That’s when they put their money in a bank. Or underneath the mattress.

This is what happens in many countries. In China, where new surveys show consumer confidence has dropped to its lowest level in decades, household savings have reached their highest level on record — nearly $20 trillion — according to the central bank. 39 China has a savings rate of about 30%. Nearly a third of all money earned is socked away in cash in case it’s needed for harder times ahead. The U.S., by comparison, has a savings rate in the single digits. 40

America has rarely been a fearful country. Hope has been the nation’s greatest economic asset. People put their money in American markets for the same reason they invest in their homes and businesses — because they believe this country will be better tomorrow than it is today.

This big, hopeful America has been the one I’ve known my whole life, but over the past few years, especially as I’ve had more grandchildren, I’ve started to ask myself: Will they know this version of America, too?

As I was finishing this letter, The Wall Street Journal published an article that caught my attention. It was titled “The Rough Years that Turned Gen Z into America’s Most Disillusioned Voters,” and it included some eye-catching — and really disheartening — data.

The article showed that from the mid-1990s through most of the early 21 st Century, most young people — around 60% of high school seniors, to be specific — believed they’d earn a professional degree, would land a good job, and go on to be wealthier than their parents. They were optimistic. But since the pandemic, that optimism has fallen precipitously.

Compared with 20 years ago, the current cohort of young Americans is 50% more likely to question whether life has a purpose. Four-in-10 say it’s “hard to have hope for the world.” 41

I’ve been working in finance for almost 50 years. I’ve seen a lot of numbers. But no single data point has ever concerned me more than this one.

The lack of hope worries me as a CEO. It worries me as a grandfather. But most of all, it worries me as an American.

If future generations don’t feel hopeful about this country and their future in it, then the U.S. doesn’t only lose the force that makes people want to invest. America will lose what makes it America. Without hope, we risk becoming just another place where people look at the incentive structure before them and decide that the safe choice is the only choice. We risk becoming a country where people keep their money under the mattress and their dreams bottled up in their bedroom.

How do we get our hope back?

Whether we’re trying to solve retirement or any other problem, that is the first question we have to ask, although I readily admit that I do not have the solution. I look at the state of America — and the world — and I am as answerless as everyone else. There’s so much anger and division, and I often struggle to wrap my head around it.

What I do know is that any answer has to start by bringing young people into the fold. The same surveys that show their lack of hope also show their lack of confidence — far less than any previous generation — in every pillar of society: In politics, government, the media, and in corporations. Leaders of these institutions (I am one) should be empathetic to their concerns.

Young people have lost trust in older generations. The burden is on us to get it back. And maybe investing for their long-term goals, including retirement, isn’t such a bad place to begin.

Perhaps the best way to start building hope is by telling young people, “You may not feel very hopeful about your future. But we do. And we’re going to help you invest in it.”

Young people have lost trust in older generations. The burden is on us to get it back. And maybe investing for their long-term goals, including retirement, isn’t such a bad place to begin.

The new infrastructure blueprint: Steel, concrete, and public-private partnership

I started traveling to London in the 1980s, and back then, if you had a choice between the city’s two major international airports — Heathrow or Gatwick — you probably chose Heathrow. Gatwick was farther from the city. It was also in a comparative state of disrepair.

But things changed in 2009 when Gatwick was purchased by Global Infrastructure Partners (GIP). They increased runway capacity and instituted commonsense changes, like oversized luggage trays that cut security screening times by more than half.

“The thing about infrastructure businesses... is a lot of them tend not to focus on customer service,” GIP’s CEO Bayo Ogunlesi told the Financial Times . GIP wanted to make Gatwick different. In the process, they also turned the airport into a prime example of how infrastructure will be built and run in the 21 st Century — with private capital. 42

In the U.S., people tend to think of infrastructure as a government endeavor, something built with taxpayer funds. But because of one very big reason that I’ll dive into momentarily, that won’t be the primary way infrastructure is built in the mid-21 st Century. Rather than only tapping government treasuries to build bridges, power grids, and airports, the world will do what Gatwick did.

The future of infrastructure is public-private partnership.

Debt matters

The $1 trillion infrastructure sector is one of the fastest growing segments of the private markets, and there are some undeniable macroeconomic trends driving this growth. In developing countries, people are getting richer, boosting demand for everything from energy to transportation while in wealthy countries, governments need to both build new infrastructure and repair the old.

Even in the U.S., where the Biden Administration has signed generational infrastructure investments into law, there’s still $2 trillion worth of deferred maintenance. 43

How will we pay for all this infrastructure? The reason I believe it’ll have to be some combination of public and private dollars is that funding probably cannot come from the government alone. The debt is just too high.

From Italy to South Africa, many nations are suffering the highest debt burdens in their history. Public debt has tripled since the mid-1970s, reaching 92% of global GDP in 2022. 44 And in America, the situation is more urgent than I can ever remember. Since the start of the pandemic, the U.S. has issued roughly $11.1 trillion of new debt, and the amount is only part of the issue. 45 There’s also the interest rate the Treasury needs to pay on it.

Three years ago, the rate on a 10-year Treasury bill was under 1%. But as I write this, it’s over 4%, and that 3-percentage-point increase is very dangerous. Should the current rates hold, it amounts to an extra trillion dollars in interest payments over the next decade. 46

Why is this debt a problem now? Because historically, America has paid for old debt by issuing new debt in the form of Treasury securities. It’s a workable strategy so long as people want to buy those securities — but going forward, the U.S. cannot take for granted that investors will want to buy them in such volume or at the premium they currently do.

Today, around 30% of U.S. Treasury securities are held by foreign governments or investors. That percentage will likely go down as more countries build their own capital markets and invest domestically. 47

More leaders should pay attention to America’s snowballing debt. There’s a bad scenario where the American economy starts looking like Japan’s in the late 1990s and early 2000s, when debt exceeded GDP and led to periods of austerity and stagnation. A high-debt America would also be one where it’s much harder to fight inflation since monetary policymakers could not raise rates without dramatically adding to an already unsustainable debt-servicing bill.

But is a debt crisis inevitable? No.

While fiscal discipline can help tame debt on the margins, it will be very difficult (both politically and mathematically) to raise taxes or cut spending at the level America would need to dramatically reduce the debt. But there is another way out beyond taxing or cutting, and that’s growth. If U.S. GDP grows at an average of 3% (in real, not nominal terms) over the next five years, that would keep the country’s debt-to-GDP ratio at 120% – high, but reasonable.

I should be clear: 3% growth is a very tall order, especially given the country’s aging workforce. It will require policymakers to shift their focus. We can’t see debt as a problem that can be solved only through taxing and spending cuts anymore. Instead, America’s debt efforts have to center around pro-growth policies , which include tapping the capital markets to build one of the best catalysts for growth: Infrastructure. Especially energy infrastructure.

Energy pragmatism

Roads. Bridges. Ports. Airports. Cell towers. The infrastructure sector contains multitudes, but the multitude where BlackRock sees arguably the greatest demand for new investment is energy infrastructure.

Why energy? Two things are happening in the sector at the same time.

The first is the “energy transition.” It’s a mega force, a major economic trend being driven by nations representing 90% of the world’s GDP. 48 With wind and solar power now cheaper in many places than fossil-fuel-generated electricity, these countries are increasingly installing renewables. 49 It’s also a major way to address climate change. This shift – or energy transition – has created a ripple effect in the markets, creating both risks and opportunities for investors, including BlackRock’s clients.

I started writing about the transition in 2020. Since then, the issue has become more contentious in the U.S. But outside the debate, much is still the same. People are still investing heavily in decarbonization. In Europe, for example, net-zero remains a top investment priority for most of BlackRock’s clients. 50 But now the demand for clean energy is being amplified by something else: A focus on energy security.

Governments have been pursuing energy security since the oil crisis of the 1970s, (and probably as far back as the early Industrial Revolution), so this is not a new trend. In fact, when I wrote my original 2020 letter about sustainability, I also wrote to our clients that countries would still need to produce oil and gas to meet their energy needs. 

To be energy secure, I wrote, most parts of the globe would need “to rely on hydrocarbons for a number of years.” 51

I’m hearing more leaders talk about decarbonization and energy security together under the joint banner of what you might call “energy pragmatism.”

Then in 2022, Putin invaded Ukraine. The war lit a fresh spark under the idea of energy security. It disrupted the world’s supply of oil and gas causing massive energy inflation, particularly in Europe. The UK, Norway, and the 27 EU countries had to collectively spend 800 billion euros subsidizing energy bills. 52

This is part of the reason I’m hearing more leaders talk about decarbonization and energy security together under the joint banner of what you might call “energy pragmatism.”

Last year, as I mentioned, I visited 17 countries, and I spent a lot of time talking to the people who are responsible for powering homes and businesses, everybody from prime ministers to energy grid operators. The message I heard was completely opposite to what you often hear from activists on the far left and right who say that countries have to choose between renewables and oil and gas. These leaders believe that the world still needs both. They were far more pragmatic about energy than dogmatic. Even the most climate conscious among them saw that their long-term path to decarbonization will include hydrocarbons, albeit less of them, for some time to come.

Germany is a good example of how energy pragmatism is still a path to decarbonization. It’s one of the countries most committed to fighting climate change and has made enormous investments in wind and solar power. But sometimes the wind doesn’t blow in Berlin, and the sun doesn’t shine in Munich. And during those windless, sunless periods, the country still needs to rely on natural gas for “dispatchable power.” Germany used to get that gas from Russia, but now it needs to look elsewhere. So, they’re building additional gas facilities to import from other producers around the world. 53

Or look at Texas. They face a similar energy challenge – not because of Russia but because of the economy. The state is one of the fastest growing in the U.S., 54 and the additional demand for power is stretching ERCOT, Texas’ energy grid, to the limit. 55

Today, Texas runs on 28% renewable energy 56 – 6% more than the U.S. as a whole. 57 But without an additional 10 gigawatts of dispatchable power, which might need to come partially from natural gas, the state could continue to suffer devastating brownouts. In February, BlackRock helped convene a summit of investors and policymakers in Houston to help find a solution.

Texas and Germany are great illustrations of what the energy transition looks like. As I wrote in 2020, the transition will only succeed if it’s “fair.” Nobody will support decarbonization if it means giving up heating their home in the winter or cooling it in the summer. Or if the cost of doing so is prohibitive.

Since 2020, economists have popularized better language to describe what a fair transition actually means. One important concept is the “green premium.” It’s the surcharge people pay for “going green”: for example, switching from a car that runs on gas to an electric vehicle. The lower the green premium, the fairer decarbonization will be because it’ll be more affordable.

This is where the power of the capital markets can be unleashed to great effect. Private investment can help energy companies reduce the cost of their innovations and scale them around the world. Last year, BlackRock invested in over a dozen of these transition projects on behalf of our clients. We partnered with developers in Southeast Asia aiming to build over a gigawatt of solar capacity (enough to power a city) in both Thailand and the Philippines. 58 We also invested in Lake Turkana Wind Power, Africa’s largest windfarm. It’s located in Kenya and currently accounts for about 12% of the country’s power generation. 59

There are also earlier-stage technologies, like a giant “hot rock” battery being built by Antora Energy. The company heats up blocks of carbon with wind or solar power during parts of the day when renewable energy is cheap and abundant. These “thermal batteries” reach up to 2,400 degrees Celsius and glow brighter than the sun. 60 Then, that heat is used to power giant industrial facilities around-the-clock, even when the sun isn’t shining, or the wind isn’t blowing.

BlackRock invested in Antora through Decarbonization Partners, a partnership we have with the investment firm, Temasek. Our funding will help Antora scale up to deliver billions of dollars worth of zero-emission energy to industrial customers. 61 (One day, their thermal batteries might help solve the kind of dispatchable power problem that Texas and Germany are facing – but without carbon emissions.)

The final technology I’ll spotlight is carbon capture. Last year, one of BlackRock’s infrastructure funds invested $550 million in a project called STRATOS, which will be the world’s largest direct air capture facility when construction is completed in 2025. 62 Among the more interesting aspects of the project is who’s building the facility: Occidental Petroleum, the big Texas oil company.

The energy market isn’t divided the way some people think, with a hard split between oil & gas producers on one side and new clean power and climate tech firms on the other. Many companies, like Occidental, do both, which is a major reason BlackRock has never supported divesting from traditional energy firms. They’re pioneers of decarbonization, too.

Today, BlackRock has more than $300 billion invested in traditional energy firms on behalf of our clients. Of that $300 billion, more than half – $170 billion – is in the U.S. 63 We invest in these energy companies for one simple reason: It’s our clients’ money. If they want to invest in hydrocarbons, we give them every opportunity to do it – the same way we invest roughly $138 billion in energy transition strategies for our clients. That’s part of being an asset manager. We follow our clients’ mandates.

But when it comes to energy, I also understand why people have different preferences in the first place. Decarbonization and energy security are the two macroeconomic trends driving the demand for more energy infrastructure. Sometimes they’re competing trends. Other times, they’re complementary, like when the same advanced battery that decarbonizes your grid can also reduce your dependence on foreign power.

The point is: The energy transition is not proceeding in a straight line. As I’ve written many times before, it’s moving in different ways and at different paces in different parts of the world. At BlackRock, our job is to help our clients navigate the big shifts in the energy market no matter where they are.

BlackRock’s next transformation

One way we’re helping our clients navigate the booming infrastructure market is by transforming our company. I began this section by writing about the owners of Gatwick Airport, GIP. In January, BlackRock announced our plans to acquire them. 

Why GIP? BlackRock’s own infrastructure business had been growing rapidly over the past several years. But to meet demand, we realized we needed to grow even faster.

It’s not just debt-strapped governments that need to find alternate pools of financing for their infrastructure. Private sector firms do too. All over the world, there’s a vast infrastructure footprint that’s owned and operated entirely by private companies. Cell towers are a good example. So are pipelines that deliver the feedstocks for chemical companies. Increasingly, the owners of these assets prefer to have a financing partner, rather than carrying the full cost for the infrastructure on their balance sheet.

I had been thinking about this trend and called an old colleague, Bayo Ogunlesi.

Both Bayo and I started our careers in finance at the investment bank First Boston. But our paths diverged. I lost $100 million on a series of bad trades at First Boston and…well, nobody needs to hear that story again. But it led me (and my BlackRock partners) to pioneer better risk management for fixed income markets. Meanwhile, Bayo and his team were pioneering modern infrastructure investing in the private markets.

Now, we plan to join our forces again. I think the result will be better opportunities for our clients to invest in the infrastructure that keeps our lights on, planes flying, trains moving, and our cell service at the maximum number of bars.

More about BlackRock’s work in 2023

In this letter, I’ve shared my view that the capital markets are going to play an even bigger role in the global economy. They’ll have to if the world wants to address the challenges around infrastructure, debt, and retirement. These are the major economic issues of the mid-21st Century. We’re going to need the power of capitalism to solve them.

The way BlackRock figures into that story is through our work with clients. We want to position them well to navigate these trends, which is why we’ve tried to stay more connected to our clients than ever.

Over the past five years, thousands of clients on behalf of millions of individuals have entrusted BlackRock with managing over $1.9 trillion in net new assets. Thousands also use our technology to better understand the risks in their portfolios and support the growth and commercial agility of their own businesses. Years of organic growth, alongside the long-term growth of the capital markets, underpin our $10 trillion of client assets, which grew by over $1.4 trillion in 2023.

In good times and bad, whether clients are focused on increasing or decreasing risk, our consistent industry-leading organic growth demonstrates that clients are consolidating more of their portfolios with BlackRock. In 2023, our clients awarded us with $289 billion in net new assets during a period of rapid change and significant portfolio de-risking.

BlackRock’s differentiated business model has enabled us to continue to grow with our clients and maintain positive organic base fee growth. We’ve grown regardless of the market backdrop and even as most of the industry experienced outflows.

I think back to 2016 and 2018 when uncertainty and cautious sentiment impacted investment behavior among institutions and individuals. Many clients de-risked and moved to cash. BlackRock stayed connected with our clients. We stayed rigorous in driving investment performance, innovating new products and technologies, and providing advice on portfolio design. Once clients were ready to step back into the markets more actively, they did it with BlackRock – leading to new records for client flows, and organic base fee growth at or above our target.

Flows and organic base fee growth accelerated into the end of 2023. We saw $96 billion of total net inflows in the fourth quarter and we entered 2024 with great momentum.

In 2024, I plan to do what I did in 2023 – spend a lot of time on the road visiting clients. I’ve already taken several trips in the U.S. and around the world, and it’s clearer than ever that companies and clients want to work with BlackRock.

For companies where we are investing on behalf of our clients, they appreciate that we typically provide long-term, consistent capital. We often invest early, and we stay invested through cycles whether it’s debt or equity, pre-IPO or post-IPO. Companies recognize BlackRock’s global relationships, brand, and expertise across markets and industries. This makes us a valuable partner, and in turn supports the sourcing and performance we can provide for clients.

Over the past 18 months, we’ve sourced and executed on a number of deals for clients. In addition to the STRATOS direct air capture project, our funds partnered with AT&T on the Gigapower JV to build out broadband in communities across the U.S. We also made investments globally, including in Brasol (Brazil), AirFirst (South Korea), Akaysha Energy (Australia), and the Lake Turkana Wind Farm (Kenya).

Our ability to source deals for clients is a primary driver of demand for BlackRock private markets strategies. These strategies saw $14 billion of net inflows in 2023, driven by infrastructure and private credit. We continue to expect these categories to be our primary growth drivers within alternatives in the coming years.

Our active investment insights, expertise and strong investment performance similarly differentiate BlackRock in the market. We saw nearly $60 billion of active net inflows in 2023, compared with industry outflows.

In ETFs, BlackRock generated an industry-leading $186 billion of net inflows in 2023. Our leadership in the ETF industry is another testament to our global platform and connectivity with clients.

What we have seen in market after market is that if we can make investing easier and more affordable, we can quickly attract new clients. We are leveraging digital wealth platforms in local markets to provide more investment access and accelerate organic growth for iShares ETFs.

In EMEA, BlackRock powers ETF savings plans for end investors, partnering with many banks and brokerage platforms, including Trade Republic, Scalable Capital, ING, Lloyds, and Nordnet. These partnerships will help millions of people access investments, invest for the long-term, and achieve financial well-being.

In 2023, we also announced our minority investment in Upvest, which will help drive innovation in how Europeans access markets and make it cheaper and simpler to start investing.

Then there is our work with Britain’s leading digital bank, Monzo, to offer its customers our products through its app, with minimum investments as low as £1. Through these relationships, we’re evolving our iShares ETF franchise to meaningfully increase access to global markets.

Let me also say a few words about Aladdin. It remains the language of portfolios, uniting all of BlackRock, and providing the technological foundation for how we serve clients across our platform. And Aladdin isn’t just the key technology that powers BlackRock; it also powers many of our clients. The need for integrated data and risk analytics as well as whole portfolio views across public and private markets is driving annual contract value (ACV) growth.

In 2023, we generated $1.5 billion in technology services revenue. Clients are looking to grow and expand with Aladdin, reflected in strong harvesting activity, with over 50% of Aladdin sales being multi-product.

As we look ahead, the re-risking of client portfolios will create tremendous prospects for both our public and private markets franchises. And integrated technology will be needed to help clients be nimble while operating at scale.

These are the times where investors are making broad changes to the way they build portfolios. BlackRock is helping investors build the “portfolio of the future” – one that integrates public and private markets and is digitally enabled. We view these changes as big catalysts. With the diversified investment and technology platform we’ve built, we’ve set ourselves up to be a structural grower in the years ahead.

Positioning our organization for the future

Just as we continually innovate and evolve our business to stay ahead of our clients, we also evolve our organization and our leadership team.

Earlier this year we announced changes to reimagine our business and transform our organization to better anticipate what clients need – and shape BlackRock so clients can continue to get the insights, solutions, and outcomes they expect from us.

For years, BlackRock has worked with clients across the whole portfolio, albeit with distinctions between product structures for ETFs, active mutual funds, and separate accounts.

Now the traditional lines between products are blurring. Clients are building portfolios that seamlessly combine both active and index strategies, including liquid and illiquid assets and spanning public and private markets, across ETF, mutual fund, and separate account structures.

BlackRock has been critical in expanding the market for ETFs by making them accessible to more investors and delivering new asset classes (like bonds) and investment strategies (like active). As a result of that success, the ETF is no longer just an indexing concept – it is becoming an efficient structure for a range of investment solutions.

We always viewed ETFs as a technology, a technology that facilitated investing. And just as our Aladdin technology has become core to asset management, so too have ETFs. That’s why we believe embedding our ETF and Index expertise across the entire firm will accelerate the growth of iShares and every investment strategy at BlackRock.

We’ll be nimbler and more closely aligned with clients through our new architecture with the aim of delivering a better experience, better performance, and better outcomes.

Voting choice

Healthy capital markets depend on a continuous feedback loop between companies and their investors. For more than a decade, BlackRock endeavored to improve that feedback loop for our clients.

We’ve done it by building an industry-leading stewardship program, one that’s focused on engaging investee companies on issues impacting our clients’ long-term economic interests. This requires understanding how companies are positioned to navigate the risks and opportunities they face – for example, how geopolitical fragmentation might rewire their supply chains or how higher borrowing cost might impact their capacity to deliver sustained earnings growth.

To do that, we built one of the largest stewardship teams to engage with companies, often alongside our investment teams, because we never believed in the industry’s reliance on the recommendations of a few proxy advisors. We knew our clients would expect us to make independent proxy voting decisions, informed by our ongoing dialogue with companies – a philosophy that continues to underpin our stewardship efforts today. For our clients who have entrusted us with this important responsibility, we remain steadfast in promoting sound corporate governance practices and financial resilience at investee companies on their behalf.

And for our clients who wish to take a more direct role in the proxy voting process, we continue to innovate to provide them with more choice. In 2022, BlackRock was the first in our industry to launch Voting Choice, a capability that enabled institutional investors to participate in the proxy voting process. Today, about half of our clients’ index equity assets under management can access Voting Choice. And in February, we launched a pilot in our largest core S&P 500 ETF, enabling Voting Choice for individual investors for the first time.

We welcome these additional voices to corporate governance and believe they can further strengthen shareholder democracy. I believe that more asset owners can participate in this important process effectively if they are well-informed. We are encouraged by their engagement and the continued transformation of the proxy voting ecosystem but continue to believe that the industry would benefit from additional proxy advisors.

Strategy for long-term growth

For 36 years, BlackRock has led by listening to our clients and evolving to help them achieve long-term outcomes. That commitment has been behind everything we’ve done as a firm, whether it’s unlocking new markets through iShares, pioneering whole portfolio advisory, launching Aladdin on the desktops of investors and so much more. Clients have been at the foundation of our mindset and our growth strategy, informing the investments we’ve made across our businesses.

The combination of technology and advisory, alongside ETFs, active and private markets capabilities, enables us to deliver a better client experience – leading to clients consolidating more of their portfolios with BlackRock or engaging us for outsourcing solutions. We believe this in turn will drive continued differentiated organic growth into the future.

As we do each year, our management team and Board spent time assessing our strategy for growth. We challenge ourselves to think: What opportunities will this economic environment create for BlackRock and our clients, what more can we do to meet and anticipate their needs? How can we evolve our organization, operating structure, investment capabilities, and service models and, in doing so, keep leading the industry?

We have strong conviction in our strategy and our ability to execute with scale and expense discipline. Our strategy remains centered on growing Aladdin, ETFs, and private markets, keeping alpha at the heart of BlackRock, leading in sustainable investing, and advising clients on their whole portfolio.

We have continually made internal investments for organic growth and efficiency, investing ahead of client opportunities in private markets, ETFs, technology, and whole portfolio solutions.

In private markets, we are prepared to capitalize on structural growth trends. Whether it’s executing on demand for much-needed infrastructure, or the growing role of private credit as banks and public lenders move away from the middle market, private capital will be essential. BlackRock is poised to capture share through our scale, proprietary origination, and track record. And we believe our planned acquisition of GIP will meaningfully accelerate our ability to offer our private markets capabilities to our clients.

In ETFs, we will continue to lead by expanding investment access globally and through innovation. The ETF is an adaptable piece of financial technology, and over time we’ve been able to do more with it than just making investing more affordable. We’ve been able to bring better liquidity and price discovery to more opaque markets. One recent example is offering people exposure to Bitcoin through ETFs.

ETFs have been an incredible growth story in the U.S., with iShares leading the way. We believe global ETF adoption is set to accelerate as catalyst trends that we saw in the U.S. years ago like the growth of fee-based advisory and model portfolios are just beginning to take root. Nearly half of 2023 iShares net inflows were from our ETFs listed internationally in local markets, led by European iShares net inflows of $70 billion.

Active asset allocation, security selection and risk management have consistently been key elements in long-term returns. Our active teams across multi-asset, fixed income and equities are well-positioned to seize on broad opportunities arising out of this new interest rate and potentially more volatile regime. We are particularly excited about the opportunity in fixed income and how artificial intelligence is propelling performance in our systematic investing businesses.

Fixed income is going to be increasingly relevant in the construction of whole portfolios with higher yields and better return potential compared to the low-rate environment of the last 15 years. Now that the rate on 10-year U.S. Treasuries is near long-term averages, clients are reconsidering bond allocations.

BlackRock is well-positioned with a diversified fixed income platform. It’s not going to be just about index, where we manage nearly $1.7 trillion. Or just about active where we manage over $1 trillion. Some of the most interesting portfolio conversations are with allocators who are blending ETFs with active or using innovations like our active ETFs for professionally managed income solutions.

Across asset classes, the need for integrated data, technology and risk management will continue to drive demand for Aladdin. Through its dynamic ecosystem of over 130,000 users, the Aladdin platform is constantly innovating and being improved. Investments in Aladdin AI copilots, enhancements in openness supporting ecosystem partnerships, and advancing whole portfolio solutions are going to further augment the value of Aladdin.

We are honored that our clients entrusted us with $289 billion of net new assets in 2023. And over the past few months, we’ve seen a decidedly more positive sentiment and tone in markets and among clients that I'm very optimistic will carry into the rest of 2024.

Our ability to adapt, evolve, and grow has generated a total return of 9,000% for our shareholders since our IPO in 1999. That is well in excess of the S&P 500 return of 490% and representative of a business model serving all our stakeholders.

Total return since BlackRock’s IPO through December 31, 2023

S&P Global. The performance graph is not necessarily indicative of future investment performance.

Our Board of Directors

BlackRock’s Board plays an integral role in our strategy, our growth and our success.

The diverse experiences and backgrounds of our Directors enable us to have rich discussions and debates. At each meeting, our Directors review components of our long-term strategy and foster constructive dialogue with our leadership team on strategic opportunities, priorities and risks facing BlackRock’s business. This dialogue ultimately pushes us to make the sometimes tactical and sometimes transformational moves to build a better BlackRock. This includes the two transformational moves we made in January: The strategic re-architecture of our organization and our agreement to acquire GIP.

These two transformational changes are the largest since our acquisition of Barclays Global Investors nearly 15 years ago.

Following the closing of the GIP transaction, we plan to have Bayo Ogunlesi join our Board of Directors. We will continue to evolve our Board over time to reflect the breadth of our global business and to guide us as we evolve ahead of our clients’ needs.

A final note

Over the past 36 years, BlackRock has grown from a company of eight people in a tiny Manhattan office into the largest asset manager in the world. But our growth is just a small part of a much larger success story.

It’s part of the same story that includes my parents retiring comfortably after 50 years of hard work. The same story where America was able to endure the 1980s S&L crisis and 2008 financial crisis – and rebound quickly and with growing strength.

And it’s the story that, hopefully, will include more people around the world. Nations that can outgrow their debt. Cities that can afford to power more homes and build more roads. Workers who can live out their golden years with dignity.

All of these stories are only possible because of the power of the capital markets and the people who are hopeful enough to invest in them.

Laurence Fink Chairman and Chief Executive Officer

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1 Based on a $1,000 investment from January 1960 to December 1990. Assumes reinvestment of all dividends. Past performance is not indicative of future results.

2 Federal Reserve History , Savings and Loan Crisis

3 OCED Economic Surveys: United States (2016)

4 Securities Industry and Financial Markets Association , Capital DMarkets Fact Book (2023), p.6

5 World Federation of Exchanges , Market Statistics-February 2024, (2024)

6 World Economic Forum , Ageing and Longevity, (2023)

7 United Nations , World Population Ageing, (2017), p.8

8 The Wall Street Journal , Japan’s Nikkei Tops 40000 for First Time, Driven by AI Optimism, ( 2024)

9 Cabinet Secretariat of Japan , Doubling Asset-based Income Plan, ( 2022), p.2

10 Note: 1. Format adapted from Adele M. Hayutin, New Landscapes of Population Change: A Demographic World Tour (Hoover Press, 2022). Data from United Nations Population Division, World Population Prospects. (latest refresh 2022), Medium Fertility Projection. 2. Peak year is defined as the year in which working age population reaches its maximum for a country. Sources: United Nations Population Statistics (as of 2022). OECD (as of 06/2023). World Bank (as of 2022).

11 United Nations , UN DESA releases new report on ageing , (2019)

12 The New York Times Magazine , Can We Live to 200? ( 2021)

13 National Library of Medicine , Estimated Life-Years Gained Free of New or Recurrent Major Cardiovascular Events With the Addition of Semaglutide to Standard of Care in People With Type 2 Diabetes and High Cardiovascular Risk, ( 2022)

14 Source 1: Bureau of Labor Statistics , Employee Benefits in the United States , (2023), p.1; Source 2: Bureau of Labor Statistics , Employee Benefits in Industry , (1980), p. 6

15 BLK Estimates based on AUM as of December 31 st , 2021 and Cerulli data as of 2020. ETF assets include only qualified assets based on Cerulli data, and assumes 9.5% of institutionally held ETFs are related to pensions or retirement. Institutional estimates includes assets defined as “related to retirement” and are based on products and clients with a specific retirement mandate (e.g., LifePath, pensions). Estimates for LatAm based on assets managed for LatAm Pension Fund clients, excluding cash.

16 BlackRock as of Dec. 31, 2021. The overall number of Americans is calculated based on estimates of participants in BlackRock’s Defined Contribution and Defined Benefit plan clients. The Defined Contribution number is estimated based on data from FERS as well as ISS Market Intelligence BrightScope for active participants across 401(k) and 403(b). Defined Contribution includes plans with over $100M+ in assets where participants have access to one or more BlackRock funds; some may not be invested with BlackRock. The Defined Benefit number is estimated based on data from public filings and Pension & Investments for the total number of participants across the 20 largest U.S. Defined Benefit plans that are not also Defined Contribution clients of BlackRock.

17 U.S. Bureau of Labor Statistics , Labor Force Statistics from the Current Population Survey, (Feb. 2023)

18 Represents the total number of active public schoolteachers enrolled in defined benefit plans with assets managed by BlackRock. Excludes Virginia, Alaska and Pennsylvania pension clients, as the states’ DB plan is not the default plan for its participants. Public school teachers count from the National Center for Education Statistics, projection for 2022 school year. Pensions participation rate based on data from the U.S. Bureau of Labor Statistics: 89% as of March 2022.

19 Social Security , Life Tables for the United States Social Security Area 1900-2100, Figure 3a

20 Social Security , When to Start Receiving Retirement Benefits, (2023), p.2

21 Social Security , Summary: Actuarial Status of the Social Security Trust Funds, (2023)

22 Dutch Government , Why is the state pension age increasing? (translated from Dutch)

23 U.S. Bureau of Labor Statistics , Civilian labor force participation rate, (2000-2024)

24 U.S. Census Bureau , Survey of Income and Program Participation (SIPP) , (2022)

25 Federal Reserve , Economic Well-Being of U.S. Households in 2022, (2023), p.2

26 BlackRock , Emergency Saving Initiative: Impact and Learnings Report, (2019-2022), p.2

27 BlackRock, Emergency Savings Initiative: Impact and Learnings Report, ( 2019-2022), p.12

28 BlackRock , What are target date funds?

29 AARP, New AARP Research: Nearly Half of Americans Do Not Have Access to Retirement Plans at Work, (2022)

30 CIA: The World Factbook , Country Comparisons: Population (2023 est.)

31 OECD , Pensions at a Glance 2023 , (2023), 222

32 Georgetown University Center for Retirement Initiatives , State-Facilitated Retirement Savings Programs: A Snapshot of Program Design Features, (2023)

33 Parliament of Australia , Superannuation and retirement incomes

34 Human Interest , The power of 401(k) automatic enrollment, (2024)

35 BlackRock , To spend or not to spend? (2023), p. 2-5

36 Source 1: The Wall Street Journal, The Champions of the 401(k) Lament the Revolution They Started, (2017); Source 2: Social Security Office of Retirement and Disability Policy, The Disappearing Defined Benefit Pension and Its Potential Impact on the Retirement Incomes of Baby Boomers , (2009)

37 U.S. Chamber of Commerce , Statement of the U.S. Chamber of Commerce, (2012), p. 3

38 Harvard Business Review , Too Many Employees Cash Out Their 401(k)s When Leaving a Job, ( 2023)

39 The Wall Street Journal , Why China’s Middle Class Is Losing Its Confidence, (2024)

40   The Wall Street Journal , Covid-Era Savings are Crucial to China’s Economic Recovery , (2023)

41 The Wall Street Journal , The Rough Years That Turned Gen Z Into America’s Most Disillusioned Voters , (2024)

42 Financial Times , How Adebayo Ogunlesi’s contrarian bet led to $12.5bn BlackRock tie-up , (2024)

43 American Society of Civil Engineers (ASCE ), 2021 Report Card For America’s Infrastructure, (2021), p. 5

44 International Monetary Fund , Global Debt Is Returning to its Rising Trend, (2023)

45 Fiscal Data: U.S. Treasury , Debt to the Penny, ( Debt was $23.4T in March 2020 and $34.5T in March 2024)

46 The Wall Street Journal , A $1 Trillion Conundrum: The U.S. Government’s Mounting Debt Bill, ( 2024)

47 US Department of Treasury , Table 5: Major Foreign Holders of Treasury Securities

48 As of March 2024. Net Zero Tracker, https://zerotracker.net (last visited March 18 th , 2024)

49 Associated Press News , The year in clean energy: Wind, solar and batteries grow despite economic challenges, (2023)

50 BlackRock iResearch Services global survey, sample size n=200, May-June 2023. Survey covered institutional investors’ attitudes, approaches, barriers, and opportunities regarding transition investing. 83% of EMEA respondents surveyed have net zero by 2050 or other date as a transition objective across their portfolio. https://www.blackrock.com/corporate/literature/brochure/global-transition-investing-survey.pdf

51 BlackRock’s 2020 Letter to Clients , Sustainability as BlackRock’s New Standard for Investing, (2020)

52 Reuters , Europe’s spend on energy crisis nears 800 billion euros, (2023)

53 The New York Times , Germany Announces New L.N.G. Facility, Calling It a Green Move from Russian Energy, (2022)

54 Texas Fall 2023 Economic Forecast

55 Federal Reserve Bank of Dallas, Texas electrical grid remains vulnerable to extreme weather events, (2023)

56 U.S. Energy Information Administration : Electricity Data Browser

57 U.S. Energy Information Administration , Solar and wind to lead growth of U.S. power generation for the next two years, (2024)

58 BlackRock Alternatives, CFP, 2023

59 Kenya Power , Annual Report & Financial Statements, (2022)

60 Reuters , BlackRock, Temasek-led group invest $150 mln in thermal battery maker Antora, (2024)

61 Business Wire , Antora Energy Raises $150 Million to Slash Industrial Emissions and Spur U.S. Manufacturing, ( 2024)

62 Oxy, Occidental and BlackRock Form Joint Venture to Develop STRATOS, the World’s Largest Direct Air Capture Plant, (2023)

63 As of June 30, 2022. “Energy companies” refers to corporations classified as belonging to the GICS-1 Energy Sector.

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