Receiving a job offer is one of the most exciting moments in your career journey. You have made it through the grueling interview process, proven your worth, and the company wants you on their team. But what happens when you open the offer letter and the salary number makes your heart sink?
This is where the counter offer letter comes in. Negotiating your salary can feel intimidating, but it is a standard and expected part of the hiring process. In fact, failing to negotiate can cost you thousands of dollars over the course of your career.
In this comprehensive guide, we will break down exactly how to write a salary negotiation email that is professional, persuasive, and effective. We will cover when to send it, how to determine your asking price, and provide you with five copy-paste templates you can adapt for your specific situation.
What is a counter offer letter?
A counter offer letter (often sent as a salary negotiation email) is a formal, written response to an initial job offer. It is used to propose a higher salary, better benefits, or different terms of employment than what the employer originally presented.
When you receive an offer, you generally have three options:
- Accept it as is: You agree to all terms and sign the contract.
- Decline it: The offer does not meet your needs, and you walk away.
- Negotiate: You express your enthusiasm for the role but propose adjustments to the compensation package.
The counter offer letter is your tool for that third option. It allows you to clearly articulate why you deserve a higher salary based on your skills, experience, and market value, all while maintaining a positive and professional relationship with your future employer.
When to send a counter offer
Timing is critical when it comes to salary negotiation. You do not want to rush your response, but you also cannot leave the employer waiting indefinitely.
Here are the general rules for when to send your counter offer letter:
- Wait for the official written offer: Never try to negotiate based on a verbal offer or an informal discussion. Wait until you have the official offer letter in hand with all the details (salary, benefits, PTO, etc.).
- Take 24 to 48 hours: Once you receive the written offer, acknowledge receipt immediately and ask when they need a final decision. Typically, you should take 1 to 2 business days to review the offer, do your research, and draft your counter offer.
- Before the deadline: Make sure you send your counter offer letter well before their stated deadline for accepting the initial offer.
If you need more time to review the offer or compare it with another opportunity, it is perfectly acceptable to ask for an extension. Just be sure to do so politely and promptly.
How to determine your counter offer amount
One of the most challenging parts of learning how to negotiate salary is figuring out exactly how much to ask for. You want to aim high enough to leave room for negotiation, but not so high that you appear out of touch with the market.
Here is a step-by-step approach to determining your counter offer amount:
1. Do your market research
You cannot negotiate effectively without data. Use resources like Glassdoor, Payscale, Salary.com, and LinkedIn Salary to research the average compensation for your role in your specific geographic area.
2. Evaluate your unique value
Consider what you bring to the table that makes you worth more than the initial offer. Do you have specialized skills? Years of highly relevant experience? A proven track record of driving revenue? Factor these into your target number.
3. Consider the total compensation package
Salary is just one piece of the puzzle. Evaluate the entire offer, including health insurance, retirement contributions, paid time off, bonuses, and stock options. If the base salary is inflexible, you might be able to negotiate for more PTO or a sign-on bonus.
4. The 10% to 20% rule
As a general rule of thumb, a reasonable counter offer is typically 10% to 20% higher than the initial offer. For example, if you are offered $80,000, a counter offer of $88,000 to $96,000 is standard.
| Initial Offer | 10% Counter Offer | 15% Counter Offer | 20% Counter Offer |
|---|---|---|---|
| $60,000 | $66,000 | $69,000 | $72,000 |
| $80,000 | $88,000 | $92,000 | $96,000 |
| $100,000 | $110,000 | $115,000 | $120,000 |
How to write a counter offer letter step by step
A successful salary negotiation email follows a specific structure. It should be polite, concise, and focused on the value you will bring to the company.
Step 1: Express gratitude and enthusiasm
Start your letter by thanking the employer for the offer and reiterating your excitement about the role and the company. You want to set a positive, collaborative tone from the very beginning.
Step 2: State your counter offer clearly
Do not beat around the bush. State exactly what you are asking for. Whether it is a specific base salary, an additional week of vacation, or a sign-on bonus, make your request clear and unambiguous.
Step 3: Provide your justification
This is the most important part of the letter. You need to explain why you are asking for more. Reference your market research, highlight your relevant experience, and remind them of the specific value you will bring to the team.
Step 4: Reiterate your interest and wrap up
Conclude the letter by restating your enthusiasm for the position and your desire to reach a mutually beneficial agreement. Keep the door open for further discussion.
Bad Example
Hi John,
Thanks for the offer. However, $75,000 is too low for me. I need at least $85,000 to accept this job because my rent just went up and I have student loans to pay. Let me know if you can do that.
Best,
Jane
Good Example
Hi John,
Thank you so much for offering me the Marketing Manager position. I am thrilled about the opportunity to join the team and help drive the upcoming Q3 campaigns.
Before I sign, I would like to discuss the base salary. Based on my research for similar roles in this area, and considering my five years of experience in digital marketing, I would like to request a base salary of $85,000.
I am very excited about the prospect of joining the company and am confident we can come to an agreement. I look forward to hearing your thoughts.
Best regards,
Jane
5 counter offer letter templates
Here are five copy-paste templates you can use for different salary negotiation scenarios. Simply fill in the bracketed information with your specific details.
Template 1: The standard salary negotiation
Use this template when you want to negotiate a higher base salary based on your market research and experience.
Subject: Job Offer - [Your Name]
Dear [Hiring Manager Name],
Thank you so much for offering me the position of [Job Title] at [Company Name]. I am thrilled about the opportunity to join your team and contribute to [mention a specific project or goal you discussed in the interview].
Before I formally accept, I would like to discuss the base salary. While I appreciate the initial offer of [Initial Salary Offer], based on my research for this role in [City/Location] and my [Number] years of experience in [Your Field/Skill], I would like to request a starting salary of [Your Counter Offer Amount].
I am very excited about the prospect of joining [Company Name] and am confident that my background in [mention a key skill or achievement] will allow me to make an immediate impact. I hope we can reach a mutually beneficial agreement.
Thank you again for your time and consideration.
Best regards,
[Your Name]
Template 2: Negotiating when you have a competing offer
Having another offer gives you significant leverage. Use this template to politely inform them of your competing offer and ask them to match it.
Subject: Job Offer - [Your Name]
Dear [Hiring Manager Name],
Thank you for offering me the [Job Title] position. I am very excited about the prospect of joining [Company Name] and am particularly drawn to [mention something you like about the company].
As I mentioned during our discussions, I have been interviewing with other companies and recently received another offer. While [Company Name] is my top choice, the other offer includes a base salary of [Competing Offer Amount].
If [Company Name] is able to match this figure, I would be thrilled to accept your offer immediately.
Thank you again for this opportunity, and I look forward to hearing from you soon.
Best regards,
[Your Name]
Template 3: Negotiating benefits or PTO
If the company has stated that the base salary is non-negotiable, you can pivot to negotiating other parts of the compensation package, such as paid time off or a sign-on bonus.
Subject: Job Offer - [Your Name]
Dear [Hiring Manager Name],
Thank you for the offer to join [Company Name] as a [Job Title]. I am incredibly excited about the opportunity and the vision you shared for the team.
I understand that the base salary of [Initial Salary Offer] is firm. However, considering my [Number] years of experience and the immediate value I plan to bring to the team, I would like to ask if there is flexibility regarding [Paid Time Off / a Sign-On Bonus / Remote Work Options].
Specifically, I would like to request [Your Specific Request, e.g., an additional week of vacation per year]. If we can agree on this, I would be ready to sign the offer letter today.
Thank you for your consideration, and I look forward to your response.
Best regards,
[Your Name]
Template 4: The value-based negotiation
Use this template when you want to heavily emphasize the specific, quantifiable value you will bring to the company to justify your higher asking price.
Subject: Job Offer - [Your Name]
Dear [Hiring Manager Name],
Thank you for extending the offer for the [Job Title] position. I am eager to bring my skills to [Company Name] and help the team achieve its goals.
After reviewing the offer, I would like to discuss the compensation. In my previous role, I successfully [mention a quantifiable achievement, e.g., increased sales by 20% / managed a budget of $1M]. I plan to bring this same level of dedication and results to [Company Name].
Given my track record and the current market rate for this level of expertise, I would like to propose a base salary of [Your Counter Offer Amount].
I am confident that my contributions will yield a strong return on investment for the company. I look forward to discussing this further.
Best regards,
[Your Name]
Template 5: The brief and direct negotiation
Sometimes, less is more. This template is short, sweet, and gets right to the point without over-explaining.
Subject: Job Offer - [Your Name]
Dear [Hiring Manager Name],
Thank you for the generous offer to join the team as a [Job Title]. I am very excited about the opportunity.
Before I sign the agreement, I would like to ask if there is any flexibility with the base salary. Based on my experience and market research, I was hoping for a salary closer to [Your Counter Offer Amount].
Is this a number we can work toward?
Thank you again for the offer, and I look forward to hearing from you.
Best regards,
[Your Name]
Mistakes to avoid when negotiating
When writing your counter offer letter, keep these common pitfalls in mind to ensure your negotiation goes smoothly:
- Making it personal: Never use personal financial obligations (like rent, student loans, or medical bills) as a justification for a higher salary. Employers pay for the value you bring to the company, not your personal expenses.
- Giving an ultimatum: Avoid using aggressive language or issuing ultimatums (e.g., "If you cannot meet this number, I will decline"). Keep the tone collaborative.
- Negotiating piece by piece: Do not negotiate the salary, wait for them to agree, and then try to negotiate the PTO. Present all of your requests at once in a single counter offer letter.
- Apologizing: Do not apologize for negotiating. It is a standard business practice. Phrases like "I'm sorry to ask, but..." undermine your confidence and your argument.
- Lying about competing offers: Never invent a fake competing offer to gain leverage. If the employer calls your bluff and tells you to take the other offer, you will be left empty-handed.
Frequently Asked Questions
Is it rude to send a counter offer letter?
No, it is not rude to send a counter offer letter. In fact, most employers expect candidates to negotiate. As long as your tone is professional, appreciative, and backed by research, a salary negotiation email is a standard part of the hiring process.
How much should I counter offer?
A standard counter offer is typically 10% to 20% higher than the initial offer. However, the exact amount should be based on your market research, your experience level, and the average salary for the role in your location.
Can a company revoke an offer if I counter?
While it is technically possible, it is extremely rare for a company to pull an offer simply because you tried to negotiate. As long as your counter offer is reasonable and communicated respectfully, the worst they will usually say is no.
Should I negotiate salary over the phone or by email?
Both are acceptable. Negotiating over the phone can be faster and allows for real-time conversation, but a counter offer letter via email gives you time to craft a clear, well-reasoned argument and ensures you have a written record of the negotiation.