If a company’s job offer falls a little short of your expectations, you’ll probably want to learn how to counter offer salary and other benefits.
Only 42% of young professionals negotiated their last job offer, according to a 2022 Fidelity Investments study. The same study also found that 87% of people who negotiated their salaries were promised at least some of what they asked for.
We’ll review how to counter offer salary in a job offer, steps you can take to prepare for a low-salary offer and how to negotiate your salary.
We’ve also included counteroffer letter examples for different scenarios that you can use in your communication with a prospective employer.
- Do your research
- Consider non-salary benefits
- Know your value
- Take time to craft your counteroffer
- Submit all your requests at once
- Negotiate
- Prepare for their response
- Make your decision
Image: steps-to-counter-offer-salary@2x1. Do your research
If you haven’t already researched salary ranges for your position, now is the time to do so. Researching average salary ranges for your role can help you understand how to counter your job offer.
Research will also help you back yourself up with data. Employers may be more likely to consider your counteroffer if you give a clear ask and a why in your negotiation.
You can use salary estimation tools and job search websites to conduct research. It’s a good idea to set a target salary range early on, so you know exactly how to react if you receive a less-than-desirable offer.
If you don’t receive the compensation package you feel that you deserve, communicate this with the hiring manager. You can bring in the average salary for the position and the cost of living in your area to ensure that your counteroffer is fair and reasonable.
2. Consider non-salary benefits
Take time to comb through the initial offer. Consider the entire compensation package and make a list of the pros and cons.
For example, the company might offer a strong health insurance package or unlimited PTO. Would it be worth it to you to accept a lower salary while having more time off?
What about a healthy retirement plan, like a 401(k) match? Does your desire for more retirement savings outweigh the need for a higher salary?
Image: other-perks-to-consider-besides-base-salary@2x3. Know your value
Unfortunately, there is no hard and fast rule for the amount you should counter offer. For this reason, it’s vital to know your worth and already have a set salary range in mind when entering negotiations.
Besides the average market rate for your position, you should also consider your experience and qualifications. Do you have specific, in-demand skills that are valuable in your industry? Do you have unique work experience that makes you especially valuable to the position?
Reiterate what you can bring to the table when counter offering a salary.
If the offer is on the low end of your desired salary range, you may try negotiating near the middle of your range. If the offered salary lies somewhere within your desired range, you may try negotiating near the higher end.
Additionally, if another company has offered you a higher salary, you may be able to use this to your advantage. You can mention that you have another competitive offer to incentivize the employer to improve your compensation package.
If you use this negotiation tactic, ensure that you’re showing respect and enthusiasm for working with the company. Otherwise, they may end up turning you away.
4. Take time to craft your counteroffer
It’s a good idea to tell your recruiter that you’ll need to take a couple of days to consider the offer, so you have time to make the best plan of action.
Send the recruiter an email thanking them for the job offer and ask if they mind if you take two to three days to consider. Give them a specific day that you will get back to them. Take this time to weigh the pros and cons of the job offer and decide how you’ll phrase your counteroffer.
5. Submit all your requests at once
Whether you convey your counteroffer over the phone or via email, you should submit all your requests at once. This will help make communication as clear as possible and eliminate unnecessary back-and-forth messages with the recruiter.
6. Negotiate
While prolonged back-and-forth communication can get frustrating, don’t shy away from negotiation. If it’s worth it to you, use salary negotiation principles to reach a compromise professionally.
7. Prepare for their response
There are a few possible scenarios for how the employer could respond to your counteroffer. Make sure to be prepared for each one.
- They could reject your counteroffer
- They could accept your counteroffer
- They could offer a compromise that is closer to your salary expectations
- In a worst-case scenario, they could rescind the job offer
8. Make your decision
Once you’ve negotiated and received the final offer from the company, you will need to make your final decision. If you can’t reach a compromise, don’t be afraid to walk away from the offer.
See the templates below to get an idea of how to accept or reject the final job offer.
Accepting the offer
Dear [Hiring Manager Name],
I am very pleased to formally accept the job offer for the position of [Position] with [Company]. Thank you again for the opportunity and for working with me to land on a compensation package that benefits us both. I’m excited to get started collaborating with the team and making a positive impact at [Company].
As discussed, my starting salary will be [Salary], and I will be eligible for benefits after [Number of days] of employment. I look forward to starting on [Date].
Thank you again!
Sincerely,
[Your Name]
Rejecting the offer
Dear [Hiring Manager Name],
Thank you very much for the offer of employment at [Company]. I sincerely appreciate your time and willingness to try to find a compromise for the compensation.
After careful consideration, I have made the difficult decision not to accept the position.
Thank you again for the offer and the opportunity to discuss the job. I regret that it didn’t work out, but I wish you the best in finding a good candidate for this position.
Sincerely,
[Your Name]
Tips for negotiating a counteroffer
Here is a list of general tips when you’re learning how to counter a salary offer. Keep these in mind all throughout the salary negotiation process.
- Be kind, patient and professional: You should be clear and firm when conveying what you want, but avoid coming off as aggressive.
- Be willing to compromise: Consider perks other than the salary and be willing to come to a compromise if the company is a great fit for you.
- Don’t give an ultimatum: It’s best not to give an ultimatum when negotiating salary. Allow the recruiter to respond to you in their own time.
- Get everything in writing: If you negotiate over the phone, make sure to also confirm and reiterate everything in writing for future reference.
- Practice: Practice your negotiation tactics with a friend or family member and ask for their feedback to improve.
What is a counteroffer?
A job candidate makes a counteroffer if they feel that the proposed salary for a job doesn’t meet their needs or expectations. The offer may fall short of what they feel matches their skills and experience in their industry and what they can bring to the table at their new company.
A counteroffer can be conducted over the phone or via email. Once the candidate counters the offer, the hiring manager will decline, accept or negotiate the offer to land on a compromise.
When to make a counteroffer
When is it appropriate to make a counteroffer?
If you’ve done your research and set a reasonable target range based on the average salary for your position, experience and skills, you will know if the offer falls short.
If you receive a low offer, don’t just accept without advocating for yourself. You deserve to receive a reasonable salary at a fulfilling job. Companies may offer a lower salary to save on budget or because they’re anticipating a negotiation.
If you think you deserve more but don’t negotiate, you could be leaving money on the table. Consider making a counteroffer if the company’s offer falls below the low end of your target salary range.
Image: when-making-a-counter-offer@2xCounteroffer salary email examples
Here is a basic template to follow when structuring your counteroffer email to your hiring manager or prospective employer.
Image: anatomy-of-a-counteroffer-email@2xWe’ve included four counteroffer salary email examples that you can use for different scenarios. Personalize each to your specific situation and thoroughly proofread your email before hitting send. Then, have a friend read it to ensure you’re coming across as respectful and professional.
Requesting a meeting to discuss salary further
Sometimes, email just isn’t the place to negotiate salary. If you would prefer to counter offer a salary over the phone, use this email template to request a meeting with the recipient to further discuss your salary.
Subject line: [Your Name] – Job Offer
Dear [Hiring Manager Name],
Thank you very much for your offer of the position [Position Name]. I’m impressed by [something about the company or team], and I’m excited about the opportunity. I believe my experience will be a great fit for the position because [explain].
Before I make my final decision, I would like to see if we can meet to discuss the compensation. With my [X] skills and [X] years of experience that I can bring to the team in mind, I believe it would be appropriate to discuss my salary and benefits further.
Please let me know if you’re available to further discuss my total compensation package. I’d be happy to discuss via [METHOD] at [DATE/TIME].
Thank you for your consideration, and I look forward to hearing from you.
Sincerely,
[Your Name]
Asking for additional compensation via email
If you want to counter offer the salary via email, get the ball rolling with the template below. This template provides a framework for you to bring in industry research on average salary, as well as your own skills and experiences to explain why a higher salary might be appropriate.
Subject line: [Your Name] – Compensation
Dear [Hiring Manager Name],
Thank you very much for your offer of the position [Position Name]. I’m impressed by [something about the company or team], and I’m excited about the opportunity. I am confident my experience will be a great fit for the position because [explain].
I’m hoping we can further discuss the base salary. My research shows that the average salary for this position in [Location] is [Range]. I would like to discuss the possibility of moving closer to [Amount], which I feel better reflects my qualifications and the job requirements.
Please let me know if you are open to discussing this before I make a decision on your offer.
Thank you again, and I look forward to hearing from you soon.
Sincerely,
[Your Name]
Responding to a lowball offer
If you are disappointed to receive a low offer from your dream employer, don’t give up on the position just yet. Use the template below to explain what you were hoping to receive and why, and see if they might be willing to compromise.
Subject line: [Your Name] – Job Offer Considerations
Dear [Hiring Manager Name],
Thank you very much for your offer of the position [Position Name]. I’m impressed by [something about the company or team], and I’m excited about the opportunity. I am confident my experience will be a great fit for the position because [explain].
I’m hoping we can discuss the base salary further. Unfortunately, the offer seems to be lower than the average salary for this position in [Location]. Based on my qualifications, my research shows that the average salary for this position is [Range]. I was hoping for something closer to [Amount], which I feel better reflects my qualifications and the job requirements.
Let me know if you are open to discussing this before I make a decision on your offer.
Thank you again, and I look forward to hearing from you soon.
Sincerely,
[Your Name]
Leveraging a higher offer from another company
Receiving a higher offer from another company puts you in a powerful position. While remaining respectful, you can leverage an offer from another company to see if a prospective employer is willing to match that offer.
It can be better to do this via phone call rather than email, but if you choose to go the email route, here’s a template to use as a guide.
Subject line: [Your Name] – Compensation
Dear [Hiring Manager Name],
Thank you very much for your offer of the position [Position Name]. I’m impressed by [something about the company or team], and I’m excited about the opportunity. I am confident my experience will be a great fit for the position because [explain].
I did want to let you know that I am considering a strong offer from another company right now. I have received another offer with a base salary of [$____].
I’m excited to be a part of your team and would be ready to accept your offer if you would be able to [MATCH OR EXCEED] this base salary. Let me know if you are open to discussing this further.
I appreciate you working with me to work out a compensation plan that will be beneficial to both of us.
Sincerely,
[Your Name]
Know your worth
How to counter offer a salary and get the pay you deserve
Image: how-to-counter-offer-salary-infographic@2x