Counter Offer Letter Important Tips 2023 Update
Unhappy with the salary or benefits that were offered to you for a new job? Crafting a counter offer letter can help you get the job you want for the compensation package you deserve.
What is a Counter Offer?
A counteroffer is a proposal made by a job applicant to an employer in response to an unsatisfactory job offer. Job applicants can submit a counteroffer to an employer in a few ways:
- Meet with the employer for an in-person negotiation.
- Speak with the employer over the phone.
- Write a counteroffer letter.
The last option presents a solid starting point for the discussion. A counter offer letter is a written or email response by the applicant to the employer’s original job offer.
In a counteroffer letter, candidates typically express their continued interest in a position but state that they desire a change in the terms of the original offer.
A counter offer letter may include the specifics of your proposal or simply ask for an opportunity to discuss compensation.
One of the most common methods of making a counteroffer is to write a counter offer letter—a written or email response by the applicant to the employer’s original job offer.
In a counteroffer letter, candidates typically express their continued interest in a position but state that they desire a change in the terms of the original offer.
When to Write a Counter offer Letter
Consider writing a counter offer letter when you are not satisfied with the compensation package an employer first offers.
For example, you may want to make a counteroffer if the salary offered is too low for your needs or experience, or you think the benefits package lacks critical benefits, such as an adequate number of paid vacation days.
Companies will often entertain a counteroffer, though they may not accept all (or any) of the requests in the offer.
For example, small businesses, which tend to have limited budgets, may reject your offer if they cannot exceed a particular salary range for your role.
What is more, companies of any size can revoke counteroffers if they are offended by or dislike your request.
Because employees in all states (except Montana) are “employed at will”—that is, both the employer and employer have the right to terminate the job at any time—employers can legally withdraw a job offer at any time.
If you want to write a counteroffer letter but are unsure how the company will react, do some research. Look at sites like Glassdoor and LinkedIn to learn more about the company culture with regard to compensation. Counter offer letter.
Benefits of Writing a Counter offer Letter
There are a few reasons why you may want to make a counteroffer through a letter rather than meeting or calling an employer, including:
It can put you at ease. Writing a counteroffer letter is ideal for applicants who feel nervous about negotiating in person.
It may play to your writing strengths. Strong and effective writers are in the best position to write a counteroffer because they can clearly articulate what they want in diplomatic terms.
It’s easy to document the exchange. Conversing in writing also leaves a useful paper trail. With an exchange of letters or emails, any agreed-upon changes are cemented in writing.
How to Decide on a Counter offer
Salary is an important factor to consider when deciding on a counteroffer—specifically, how much you need to comfortably meet your needs in the place where you live.
But it’s prudent to think about the whole compensation package as well. Consider other non-salary compensation changes that you can ask for, such as relocation costs, insurance, signing bonuses, vacation and sick days, and other benefits.
You can also include office-specific benefits, such as your office space, hours, or telecommuting options.
Look into the typical salary for people in the job you want, both within the company and nationally, through an online salary calculator.
Once you have a sense of your worth, you can make a more informed decision about your desired compensation package. Counter offer letter.
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What to include in a Counter offer Letter
Make it easier for the employer to address and accept the desired changes to the original offer by stating them in clear terms in an easy-to-follow format:
1. Header
Put your letter in standard business letter format. Include a header with the employer’s information and your contact info. Address the letter to the employer.
2. Introduction
Begin by emphasizing your interest in the company and one or two key reasons why you are an ideal candidate for the job. This will remind the employer why they wanted to hire you and why you are worth the extra money and/or benefits.
3. Body of the letter
In the body, you can request a meeting with the employer and be general about the changes you want until the meeting.
Or state the specific changes in the letter itself. If you go the latter route, include a short paragraph for every part of the compensation package that you want to negotiate.
In each paragraph, clearly state the original offer, your counteroffer, and why you believe the counteroffer is appropriate.
For example, after you state the original salary and your desired salary, explain that their offer was below the national average salary for the job. Counter offer letter.
4. Conclusion
Emphasize the reasonable nature of your request and restate how excited you are to work at the company. You might also want to offer to meet the employer in person to discuss further, or simply tell the employer to contact you.
5. Subject line
If you send the counteroffer letter as an email, the subject line of your message should be your name and the reason you are writing in the format “Your Name – Job Offer.”
How to Write a Counter Offer Letter
When writing a letter for a counteroffer, use a polite and professional tone and state your compensation requirements clearly and concisely. Format your counteroffer as a formal or business letter, which includes these steps:
1. Add your contact information: At the top left of your letter, include your full name, address, and contact information, the date, and the employer’s full name, title, and address.
Use a professional greeting: Address the hiring manager using a professional greeting such as “Dear Ms. Gammond.”
2. Write an introduction: Begin your letter with a brief introduction (usually two or three sentences) thanking the hiring manager for the job offer and emphasizing your interest in the position. Counter offer letter.
State why you believe you are the perfect candidate for the job so the employer understands your value to the company and why you are worth more compensation.
3. State your counteroffer: In the body of the letter, clearly state the company’s offer and your counteroffer and why you think it is justified.
If you are negotiating multiple parts of the compensation package, state each counteroffer in a new paragraph.
For example, “Corrigan Media’s offer of $45,000 is generous, but I would like to counter with a salary of $52,000, which is the national average salary for graphic designers.”
4. Conclude the letter: Repeat your excitement to work with the company and why your counteroffer is appropriate. Offer to meet the hiring manager to discuss your compensation in person, and thank them for their time.
5. Add a closing salutation: Use a formal salutation such as “Respectfully” or “Sincerely,” followed by your full name and signature.
This straightforward format allows the employer to easily read and understand your counteroffer and decide how they want to respond. Counter offer letter.
Counter offer Letter Examples
Use these counter offer letters as templates when you need to request changes to a job offer.
Letter Requesting a Meeting
This sample counteroffer letter requests a meeting to discuss the compensation package that was offered.
Letter Example
Subject Line: Lisa Wong – Job Offer
Dear Ms. Gonzalez,
Thank you for your offer of the position of Regional Manager of Product Development for the Witten Company.
The depth of knowledge of your development team is impressive and believe that my experience will help to maximize the profitability of the department.
I would like to meet with you regarding the salary and benefits you have offered before I make a final decision.
With the skills, experience, and contacts in the industry that I would bring to Witten, further discussion of my compensation would be appropriate.
Thank you very much for your consideration.
Sincerely,
Lisa Wong
Email: [email protected]
Phone: 203-555-1234
Letter Requesting Additional Compensation
Here’s an example of a letter requesting additional compensation. The writer makes a counter-salary offer with claims to back up the request.
Letter Example
Subject Line: Suzanne Pavillion – Compensation
Dear Ms. Montagne,
Thank you very much for offering me the position of Senior Sales Associate at The Revelation Company. The opportunity looks very interesting, and I am sure that I would find the position rewarding.
I am hoping that we can discuss the possibility of adding a 5% commission to my base salary, as my 15-year track record in sales and Rolodex of contacts will enable me to bring additional revenue to the company.
Please let me know if we can discuss this before I make a decision about accepting your offer.
Thank you for your consideration.
Respectfully yours,
Suzanne Pavilion
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13 Tips to Prepare for Salary Negotiation
Counter offer letter. Here are all the tips you need to prepare for salary negotiation:
1. Start by Evaluating What you Have to Offer
It’s important you know exactly how much value you can offer an employer before you begin the process of negotiating a salary. There are several factors that can influence your compensation, such as:
Geographic Location: Consider the cost of living in your geographic location. For example, you might require a higher salary in San Francisco than in Minneapolis for the same set of responsibilities because it generally costs more to live there.
Years of Industry Experience: If the job description requires 3-5 years of experience and you meet the higher requirement, it might warrant a higher salary.
Years of Leadership Experience: Similar to industry experience, if the employer prefers or requires leadership skills and you meet or exceed their expectations, it may be justification for higher pay.
Education Level: Relevant bachelor’s, master’s, Ph.D., or specialized degree programs can impact your compensation depending on the role or industry.
Career Level: In general, you might expect a higher pay range as you advance further in your career.
Skills: Niche or technical skills that take time to master may attract higher salaries.
Licenses and Certifications: An employer may require or prefer that you have specific licenses or certifications. If you already have them, you might be in a good position to request greater compensation.
When you begin your salary negotiation, be sure to reiterate why you’ll be a valuable employee and consider using the above factors to justify your desired salary. Counter offer letter.
2. Research Market Average
Having this data can help support a more successful negotiation and can be found by using Indeed Salaries.
Knowing the market average can give you a good baseline for your salary request and can even be used as justification.
This tool uses salaries listed from past and present job postings on Indeed as well as data submitted anonymously by other Indeed users. Here are some questions to consider as you begin your market research:
What is the national average salary for the position?
What is the average in your geographic location and in cities nearby?
How much do similar companies in your area pay employees in this position?
Visit Indeed’s Salary Calculator to get a free, personalized pay range based on your location, industry, and experience.
3. Prepare Your Talking Points
As you’re developing negotiation notes, it might be helpful to answer the following question as a framework for your conversation:
Why do you feel you deserve a higher salary than the one the employer is offering? Put together a few talking points before you contact the employer and be as specific as possible. Those details might include information like:
Results you’ve achieved in previous roles such as goals you’ve met, the revenue you’ve helped drive, or awards you earned. If possible, use actual numbers.
Years of industry experience, particularly if you have more experience than the employer stated as a minimum requirement.
Skills or certifications, especially if they are in high demand within your industry.
Average salaries being offered by other similar employers for similar roles Counter offer letter.
4. Schedule a Time to Discuss
Reach out to the recruiter or hiring manager to set up a time to speak over the phone. While it’s acceptable to negotiate over email, it’s highly encouraged for the conversation to happen over the phone.
Speaking over the phone or in person allows you to have a back-and-forth conversation, express gratitude, and clearly communicate your requirements.
Try to be respectful and clear as the recruiter or hiring manager will be the ones advocating for your salary to the decision-makers.
5. Rehearse With a Trusted Friend
Practicing your talking points can help you gain confidence and identify areas of improvement. The best way to practice would be in front of a trusted friend or colleague that can provide helpful feedback.
Alternatively, you can try recording your conversation on a camera or speaking in front of a mirror.
This step is especially important because talking about money can sometimes feel uncomfortable, but the more you practice, the more comfortable you’ll feel when it comes time to have the conversation.
6. Be Confident
Delivering your negotiation with confidence is as important as the words you say. The more confidence you convey, the more confident the employer will be in their consideration of your feedback.
Confidence, an appreciation of our own abilities and qualities, should not be confused with arrogance, an exaggerated sense of our importance.
Lack of confidence can also result in over-explaining or apologizing for your ask, neither of which is helpful in a negotiation scenario. Instead, confidently and simply state your requested salary, including a brief summary of your reasoning.
Remember that you’re bringing an important set of skills and experience to the organization. The pay an employer offers should account for the value you provide.
If you feel the employer’s original offer is below the value that aligns with your skills and experiences, be prepared with researched market salary and personal value data.
That supports your ask and be confident in your decision to ask for more.
7. Lead With Gratitude
Once you reach the job offer phase of the hiring process, you’ve probably invested a great deal of time and energy applying and interviewing for the position.
The employer has also invested time in the process, so it’s crucial you recognize this and thank them for considering you for the opportunity.
Be sure to share any specific reasons why you’re excited about the job, such as the culture or the product.
Even if you end up declining the offer, it’s important to do so in a friendly and professional manner. After all, you never know what opportunities they may have available for you in the future.
8. Ask for The Top of Your Range
One fundamental rule of salary negotiation is to give the employer a slightly higher number than your goal. This way, if they negotiate down, you’ll still end up with a salary offer you feel comfortable accepting.
If you provide a salary range, the employer will likely err on the lower end, so be sure the lowest number you provide is still an amount you feel is fair.
9. Share Job-related Expenses You’re Incurring
Another reason you may ask for an increased salary is to cover any costs you’re accumulating by taking the job.
For example, if you’re relocating to a new city for the job, you’ll have to pay moving expenses as well as any costs associated with selling or leasing your current home.
If you’re taking a position further away from home, you’ll have to factor in commute expenses such as train fare or gas and wear and tear on your vehicle.
It’s not unusual for candidates to ask employers to adjust their salary to account for expenses related to accepting the position.
10. Prepare for Tough Questions
Recruiters and hiring managers negotiate often, so they will likely be prepared to ask important, sometimes intimidating questions to figure out your motivations.
It’s important not to get rattled by these questions and to remain honest. Some questions you can expect include:
- Are we your top choice?
- If we come up in salary will you accept the position immediately?
- Do you have any other offers?
11. Be Flexible
Even if the employer is unable to provide the salary amount you want, they may be able to offer other forms of compensation.
For example, you may be able to negotiate more stock options, extra vacation days, a sign-on bonus, or additional work-from-home days to combat a lengthy commute.
Be ready to ask for alternatives in a situation where the employer immediately lets you know they cannot increase the salary offer. In some cases, they may be just as valuable (or more so) than a paycheck.
12. Ask Questions
If the person you’re negotiating with seems surprised, reacts negatively, or immediately rejects your counter, try to remain confident and calm. Meet their reaction with open-ended questions to find out more information and keep the conversation going.
Examples of questions include, “What is the budget of this position based on?”, ”What information do you need from me to make a decision? ”Are there other negotiables available besides salary?
13. Don’t be Afraid to Walk Away
In some cases, an employer may not be able to meet your minimum salary requirement or offer additional benefits that make it worth your while.
Or the employer may counter-offer with a salary that’s higher than their first offer but not as high as your request. In this case, you’ll need to decide if the job is worth the lesser amount.
If it’s less stressful than your current position, is closer to home, or offers you more flexibility or more free time, you may be open to taking a lower salary.
However, if not, you should consider walking away and seeking other opportunities elsewhere.
What to Do After You Submit a Counter offer Letter
While you wait for the employer to respond to your proposal, consider any deal-breakers—the bare minimum terms you are willing to accept in a counteroffer.
Is there a certain salary or set of benefits that you are unwilling to negotiate? Think about how you will respond if the counteroffer falls below these terms.
Be prepared for any response from the employer. He or she can respond in one of the following ways:
- Request to meet with you in person to negotiate your compensation
- Accept any or all of your changes
- Reject some or all of the requests
- Provide another counteroffer
If the employer rejects your proposal or provides another counter offer, decide whether to take the counteroffer, put in a new counteroffer, or walk away.
If you accept the counteroffer, get the new offer in writing so there is no confusion when you start the job.
How to Decide on a Counter offer
Salary is an important factor to consider when deciding on a counteroffer—specifically, how much you need to comfortably meet your needs in the place where you live.
But it’s prudent to think about the whole compensation package as well.
Consider other non-salary compensation changes that you can ask for, such as relocation costs, insurance, signing bonuses, vacation and sick days, and other benefits.
You can also include office-specific benefits, such as your office space, hours, or telecommuting options.
Look into the typical salary for people in the job you want, both within the company and nationally, through an online salary calculator.
Once you have a sense of your worth, you can make a more informed decision about your desired compensation package.
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Letter Requesting a Meeting
This sample counteroffer letter requests a meeting to discuss the compensation package that was offered.
Letter Example
Subject Line: Lisa Wong–Job Offer
Dear Ms. Gonzalez,
Thank you for your offer of the position of Regional Manager of Product Development at Witten Company. The depth of knowledge of your development team is impressive and believe that my experience will help to maximize the profitability of the department.
It would be great to meet with you regarding the salary and benefits you have offered before I make a final decision. I feel that with the skills, experience, and contacts in the industry that I would bring to Witten, further discussion of my compensation would be appropriate.
Thank you very much for your consideration.
Sincerely,
Lisa Wong
Email: [email protected]
Phone: 203-555-1234
Letter Requesting Additional Compensation
Here’s an example of a letter requesting additional compensation. The writer makes a counter-salary offer with claims to back up the request.
Letter Example
Subject Line: Suzanne Pavillion – Compensation
Dear Ms. Montagne,
Thank you very much for offering me the position of Senior Sales Associate at The Revelation Company. The opportunity looks very interesting, and I am sure that I would find the position rewarding.
I am hoping that we can discuss the possibility of adding a 5% commission to my base salary, as my 15-year track record in sales and Rolodex of contacts will enable me to bring additional revenue to the company.
Please let me know if we can discuss this before I make a decision about accepting your offer.
Thank you for your consideration.
Respectfully yours,
Suzanne Pavilion
What to Do After You Submit a Counteroffer Letter
While you wait for the employer to respond to your proposal, consider any deal-breakers—the bare minimum terms you are willing to accept in a counteroffer.
Is there a certain salary or set of benefits that you are unwilling to negotiate? Think about how you will respond if the counteroffer falls below these terms.
Be prepared for any response from the employer. He or she can respond in one of the following ways:
- Request to meet with you in person to negotiate your compensation
- Accept any or all of your changes
- Reject some or all of the requests
- Provide another counteroffer
If the employer rejects your proposal or provides another counteroffer, decide whether to take the counteroffer, put in a new counteroffer, or walk away.
If you accept the counteroffer, get the new offer in writing so there is no confusion when you start the job.