As a document that personally introduces you (and your resume), it is best to limit your cover letter to one page and to address a specific individual whenever possible. Include the company name and the recipient's name and title. Even when applying to a blind ad or box number one can use the ad information to personalize a cover letter.
Your introduction: Whenever possible, indicate how you came to apply to the company, such as...
Next, summarize your qualifications: It is important to illustrate your qualifications as they relate to the requirements of the position. Amplify or augment information contained in your resume (rather than merely repeating it) and include a few strengths or personal qualities.
End with an action: If the opening was unadvertised and the resume is unsolicited, indicate that you will follow up in a few days. If you are responding to an advertised position, indicate you are looking forward to the opportunity to discuss how you can contribute to the success of the organization.
It is important to balance the tone of your cover letter. You want to be professional yet cautiously assertive. While a resume does not conform to standard writing styles (e.g., using personal pronouns, articles, and complete sentences), a cover letter does! Lastly, remember to focus on the employer's needs rather than your own (e.g., indicate what skills you will bring to the position to get the job done, not what you expect the employer to do for you).
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