How To Handle A Salary Counteroffer

Receiving a job offer is an exciting milestone, but it often prompts the desire to negotiate for a higher salary or additional benefits. While the thought of negotiating may feel daunting, making a counteroffer can lead to a mutually beneficial agreement between you and your future employer.

In this article, we’ll explore effective strategies for crafting a polite counteroffer, key considerations before making your request, and the potential outcomes of your negotiations.

Key Takeaways

• Always acknowledge a job offer with gratitude and specify when you will provide your response.

• Conduct thorough research to understand the average salary for your role in your location and industry.

• Remember that you can negotiate for benefits such as additional leave or bonuses, not just salary.

How to Make a Salary Counteroffer

1. Take your time and communicate. Upon receiving a job offer, it’s important to express your enthusiasm while also taking the time needed to assess it thoroughly. Respond promptly with gratitude and a clear timeline for when you will get back to them after thoughtful consideration.

   There’s no need to rush unless the employer has set a specific deadline. Just as they invested time to choose you as their top candidate, take the time to evaluate their offer carefully. Use this time to research why you might deserve a higher salary.

2. Maintain a positive rapport. The hiring manager is likely already impressed with your qualifications and demeanor. It’s essential to uphold this positive impression throughout the negotiation process. Remember, securing a higher offer often hinges on the employer’s desire to accommodate you.

   Behaviors that may diminish your likability during negotiations include:

   • Being perceived as greedy

   • Excessive demands

   • Exhibiting arrogance

   • Displaying pettiness

   • Being overly aggressive

   Conversely, behaviors that enhance your likability include:

   • Being courteous

   • Demonstrating gratitude

   • Communicating clearly and strategically

   • Being honest

3. Explore benefits beyond salary. If the employer cannot meet your salary expectations, consider what other benefits might be valuable to you. Non-salary benefits can sometimes compensate for a lower salary offer.

   Examples of non-salary benefits you might request include:

   • A signing bonus

   • An additional week of annual paid vacation

   • More sick leave

   • Reimbursement for relocation expenses

   • Commuting support

   • Remote work options

   • An accelerated performance review for promotion

4. Justify your requests politely. Effective negotiation involves clear communication. Employers are unlikely to grant requests they don’t believe are justified. Explain why you believe you deserve a higher salary or additional benefits.

   When detailing your requests, include your relevant experience, skills, and education. If you lack substantial reasoning, it may be wise to reassess your requests. Maintain a humble tone, emphasizing specific examples of your past achievements rather than simply stating your worth.

5. Show understanding. Just as you hope the company will understand your needs, be mindful of theirs. Every organization has its constraints, and it’s essential to approach negotiations with respect for these limitations.

   View negotiations as a collaborative discussion rather than a list of demands. Engage with questions about the company’s needs and tailor your requests accordingly.

6. Present your requests cohesively. Strive for clarity in negotiations, minimizing back-and-forth communication. When you make your counteroffer, include all your requests in one communication, whether via email or in person, to avoid overwhelming the employer with multiple requests later.

7. Prioritize your requests. Understand that you may not receive everything you ask for in your counteroffer. Focus on your most critical needs. If you can compromise on salary but require additional paid leave or flexible work-from-home options, emphasize those priorities.

   A disorganized counteroffer may lead to diminished outcomes.

8. Understand your value. Knowing your worth is crucial in negotiations. This involves not just subjective qualities but also concrete factors that enhance your marketability.

   Conduct thorough research into average salaries for your qualifications and industry standards to bolster your case. Remind the employer why you are the best fit for the role and why negotiation is justified.

9. Remember, you can walk away. Sometimes, negotiations may not yield the desired results. If you and the hiring manager cannot agree on a suitable salary, it’s important to understand that you can respectfully decline the offer.

   This might be a difficult choice, but recognizing when to move on can lead to better opportunities. You may discover that exploring alternative offers benefits your career in the long run.

What Is a Counteroffer?

A counteroffer is a proposal made by an employee to their prospective or current employer when they find the original offer unsatisfactory. There are various reasons one might consider the initial salary inadequate.

Some reasons include:

• Being below market standards for the position

• Possessing significant experience or education

• Length of tenure with the company (if negotiating a promotion or raise)

Employers may also initiate counteroffers to retain talent when an employee receives a more attractive offer from a competitor.

How to Determine if You Should Counteroffer

Deciding whether to submit a counteroffer hinges on several factors.

Consider the following questions before proceeding:

• What is the market average salary for your role at your experience level?

• How long have you been in the industry?

• Do you hold relevant degrees or certifications?

• What salary range were you initially expecting?

• Are you prepared to decline the offer if they cannot meet your minimum requirements?

These questions will help you assess the strength of your case for a higher salary.

For instance, if the average salary for a retail manager is between $32k and $72k annually, and you possess five years of management experience but receive a $32,000 offer, you likely have a strong case for negotiation based on market averages.

Sometimes, benefits may outweigh a higher salary. Consider what non-salary perks you would be content with if the employer is firm on the salary.

Avoid negotiating merely for the sake of it. If the initial offer meets your expectations, it may be wise to proceed with the hiring process.

Possible benefits to consider include:

• Stock options

• Additional vacation and sick days

• Floating holidays

• Remote work days

• Tuition reimbursement

• Retirement benefits

• Health insurance

• Life insurance

• Defined bonuses

How Much Compensation to Target

If you believe you are worth more based on your skills and experience, it’s important to establish your target compensation and salary requirements before negotiating. Be realistic about your expectations in relation to your work history and the typical pay for your role.

Before finalizing a salary range, conduct comprehensive research. Enter negotiations equipped with relevant information about market standards for your specific position and responsibilities. Utilize online resources to your advantage.

Key information to consider includes:

• The job title, field, and position

• Your skills, experience, and educational background

• The geographical location

When determining your ideal salary range, ensure that the lower end is still a feasible wage. Employers may gravitate toward the lower end of your range, even if you present a compelling case. Avoid suggesting a range that is unreasonably high, as it may discourage the employer from considering you.

What Can Happen When You Counter a Job Offer

The outcome of your counteroffer often hinges on your negotiation skills and the employer’s flexibility. Ideally, both parties will leave feeling satisfied after negotiations, but this isn’t always the case.

It’s possible that the organization may lack the budget to accommodate your requests, or they may withdraw the offer if they feel the negotiations are becoming excessive. Alternatively, they might not be able to raise the salary but could offer additional vacation days.

Ultimately, you won’t know the outcome until you submit your counteroffer.

Tips for Making a Salary Counteroffer

1. Document everything in writing. Even if you discuss your counteroffer verbally, ensure you obtain a revised job offer in writing once the terms are settled.

   This protects both parties from misunderstandings and serves as a record of the agreement.

2. Express enthusiasm for the role. If you are contemplating the job offer, convey your excitement and positivity about joining the company, even while negotiating.

   This reinforces to the hiring managers your genuine interest in the position, while clarifying that you need to finalize some details.

3. Consider the employer’s perspective. Keep in mind that you are negotiating, not trying to pressure your future employer. Take into account their position and what they may be able to offer during negotiations.

   A small, family-owned business may have limited flexibility compared to a larger corporation, so tailor your requests accordingly.

4. Seek external feedback. Whether you present your counteroffer in person or in writing, it’s beneficial to have someone you trust review it beforehand.

   This person can help identify any errors, ensure your message is clear, and check that your tone remains polite and friendly, boosting your confidence as you prepare for the discussion.

Salary Counter Offer FAQ

1. Is it OK to counter a salary offer?

   Yes, it is acceptable to counter a salary offer if it falls below your expectations. Ensure your negotiation is based on research regarding salaries for your position, experience, and location. Consider non-salary benefits and perks as part of your overall compensation strategy.

2. Can a salary negotiation backfire?

   Yes, negotiations can backfire if they occur prematurely or if you accept a verbal offer and then seek a higher salary later. Negotiation should take place after receiving the offer but before accepting it. Avoid trying to negotiate after accepting a verbal offer.

3. Should you accept the first salary offer?

   Accept the first offer if it meets your expectations. If the salary and benefits align with your needs, there is no harm in accepting the initial offer. Avoid negotiating for the sake of negotiating.

References

1. Harvard Office of Career Services – The Ultimate Guide to Negotiating Your Salary

Author

Sky Ariella

Sky Ariella is a professional freelance writer, originally from New York. She has been featured on websites and online magazines covering topics in career, travel, and lifestyle. She received her BA in psychology from Hunter College.