Unhappy with the salary or benefits that were offered you for a new job? Consider making a counteroffer to your prospective employer.
Often, the best way to make a counteroffer is through a formal letter. Crafting a counteroffer letter is a simple process that can help you get the job you want for the compensation package you deserve.
What is a Counteroffer?
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 to the discussion. A counteroffer 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 counteroffer 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 counteroffer letter—a written or email response by the applicant to the employer's original job offer. In a counter offer 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 Counteroffer 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.
Benefits of Writing a Counteroffer 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 Counteroffer
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.
What to Include in a Counteroffer 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:
- 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.
- 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.
- 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.
- 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.
- 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."
Tips for Writing a Counteroffer Letter
These guidelines can help you effectively communicate your expectations to an employer:
- State clear reasons backed with research. You will be more likely to receive a positive response if you provide clear reasons for why you think you deserve more money or additional benefits. Communicate your desired compensation package in the context of your experience level, market rates for the position, and the cost of living in the region. Making demands that are well outside of industry norms can make you look like an unserious applicant.
- Communicate other job offers. If you have a competing job offer, convey it to the employer to incentivize them to up the ante and offer a better compensation package to keep you from going with the other job.
- Emphasize your sought-after skills. Having skills that are hard to find in your industry can make you more valuable in the eyes of employers. Be sure to mention these in-demand skills to strengthen your case for getting more money or benefits.
- Formulate your wants as requests rather than demands. Be firm in communicating what you want, but don't use an aggressive tone.
- Use polite, neutral terms. Aim for language that doesn't tip off your emotional state, such as "I'd be more comfortable with..." rather than "I really need..." Likewise, don't insult the company or the individual handling the negotiation.
- Edit and proofread. Thoroughly edit your letter before sending it. Consider having a family member or friend look at it, too.
Counteroffer 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 counter offer letter requests a meeting to discuss the compensation package that was offered.
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. I am impressed with the depth of knowledge of your development team 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. 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.
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.
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.
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 on? 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.