Some industries suffer from a weak labor market. This leaves prospective employees with less leverage and even less bargaining power.
As such, employers feel they’re in a better position to dictate the terms of their job contracts.
Yet, the job market is complex. Candidates can take advantage of that and negotiate better terms of their job contracts.
One of these negotiation tactics is in the form of an effective counter offer letter.
Counter Offer Letters: A Quick Overview
Receiving a job offer is exciting! Yet, it can come with certain disappointments like when you don’t get the benefits or salary you were expecting.
In situations like this, consider making a counter offer as part of negotiating a salary or benefits package. This can be done in one of the following ways:
- An in-person meeting to negotiate new terms for the job
- Speak with your hiring manager over the phone
- Write a counter offer letter, which is considered the most common tactic when negotiating for a better deal
What Is a Counter Offer Letter?
A counter offer letter is a proposal that can be in the form of either a letter or e-mail. It’s sent by job candidates who feel that the terms of the contract don’t meet their level of expertise, industry average, or personal needs.
This letter isn’t considered a rejection per se. It’s seen more as a negotiation tactic to get the best deal possible for both parties.
Is It Okay to Counter an Offer
In many business settings, hiring managers actually expect candidates to counter a job. According to various studies, employees can be making up to 13% extra if they only take the time to negotiate their salary.
Still unsure how the company you’re applying to will react to a counter offer letter? Why not research the company?
Start by looking at their website to learn about the company culture. You can also search for the company on sites like LinkedIn and Glassdoor.
This way, you can find out what their general consensus is on counter offers.
The Cold Hard Facts about Counter Offer Letters
Then, hiring managers can provide a reply and get the counter offer process rolling.
When Should You Write a Counter Offer Letter?
Job candidates usually consider drafting a counter offer letter when they’re not satisfied with the proposed salary or benefit package.
Say, for example, you get an exciting job offer, but you feel that the salary being offered is too low.
Or maybe the position requires you to relocate. This would be a good opportunity to ask your employer for extra relocation expenditures.
It could also be that you believe the benefits package is missing critical features like:
- Adequate number of paid vacation and sick days
- Insurance
- Relocation costs
- Signing bonuses
- Office-specific benefits, such as telecommuting options and office hours or space
What Are the Benefits of a Counter Offer Letter?
While some job candidates put their offer forward in a meeting or a phone call with the hiring manager.
Yet, there are numerous benefits to learning how to counter offer a salary package via a letter or e-mail, including the following:
It Plays to your Strengths
A well-written counter letter is a perfect opportunity to showcase your persuasive writing skills. Plus, you’ll get to go through various drafts until you finally settle on the best one.
It Can Put You at Ease
In-person meetings have their advantages. Yet, sometimes, they can also be nervewracking and highly stressful, especially for new hires.
Thus, putting your ask down in writing can be an advantage if you’re feeling nervous about negotiating in person.
Document the Process
Sending your offer via a letter ensures that any changes agreed upon by the employer and employee are cemented in writing. This paper trail can come in handy later on when you need solid proof of the counter offer process.
What to Include in a Counter Offer Letter
Before drafting the letter, it’s better to research typical base salary ranges for your position via an online salary calculator.
You should do this both within the company and on a national scale. This way, you’ll be able to make a more informed decision about the type of compensation package that best suits you.
In counter offers, you should start by expressing your gratitude for the job offer. Then, state the terms you’d like to change and what your counter offer is.
It’s also recommended that you provide justifying evidence or proof to support your claims.
After that, the final decision will then be up to the employer, which can be either to accept the counter, decline it, or propose a different offer.
Of course, every employee hopes the HR department goes along with their counter offer right off the bat.
Unfortunately, there’s always the chance that an employer may reject a counter offer. Almost always the rejection stems from something within the company.
It could be they have limited funds and can’t increase your salary. Or maybe the company protocol dictates that they can’t exceed a certain salary range for the job position you’re applying to.
There’s also another reason why an employer can decline or offer and that’s if they feel offended or annoyed at your choice of words.
The good news is that most counter offers are either met with a partial acceptance. In other words, hiring managers will read over your counter offer letter and take in all the changes you’re proposing.
Then, they’ll either welcome all new terms, which is pretty rare, or they can accept only parts of the request.
The following are a few things your employer will be checking for before giving final acceptance of your offer:
- Header with your contact information
- Introduction that includes why you’re an ideal candidate for this position and why they should hire you
- Body of the letter stating the specific changes you want to propose and why you think it’s more appropriate
- Conclusion where you emphasize your request and how you look forward to hearing from them to discuss the terms further.
Tips for Writing a Great Counter Offer Letter
These five tips can help make the counter process go more efficiently. Take a look.
1. Present Clear Reasons
Your counter will more likely be well-reserved if you clarify your reasons for the change. You should also include why you think you deserve additional benefits or more money.
Also, highlight the skills that make you more valuable to the organization.
Back up your reasons with facts and research. Make sure it’s in context with the market rates for your intended position, your experience level, and the cost of living in the region.
2. Remain Respectful
Employers are more likely to entertain the idea of the changes when they feel that your tone is courteous and respectful. So, try to aim for language that doesn’t come off as aggressive or antagonistic.
3. Relay Other Job Offers
Do you have a competing job offer? Then, consider conveying it to your hiring manager. Think of it as a negotiating tactic.
This way, they’ll be encouraged to come up with a better compensation package than what they were originally offering.
4. Edit and Proofread
Always edit and proofread your letter before sending it. Also, have a friend or family member take a look at it and see what they think.
They can ask also relevant questions to solidify your case. Then, they can determine whether you’ve made a compelling case.
Sample Counter Letter Offers Letter Examples
Use these samples as guides when drafting your next counter offer letter.
Counter Offer Letter Template
(Your full name)
(Your address)
(phone number/email address)
(Date of writing, location)
(Hiring manager’s full name and title)
(Company name)
(Company address)
(City, state, ZIP code)
Dear (Recipient’s name),
(Introduction highlighting your interest in the company and the reason for this letter.)
(1-2 paragraphs stating your request with supporting data and facts.)
(Conclude by repeating your enthusiasm for the position and provide a call to action.)
Respectfully yours,
(Your name)
Letter Requesting Additional Benefits
Dear Ms. M,
Thank you for offering me the position of (job position) at (company name). It seems like an interesting opportunity that I’m sure to find quite rewarding.
However, I was hoping that we can discuss the possibility of including some additional benefits to the proposed package. by 15%. I believe that my 13-year track record in (state field of expertise) and numerous contacts can help maximize the department’s gains and profits.
So, please let me know if we can discuss this further before I can make a final decision regarding your offer.
Thank you for your time.
Respectfully yours,
(Your name)
Letter Requesting Additional Compensation
Dear Ms. M,
Thank you for offering me the position of (job position) at (company name). It seems like an interesting opportunity that I’m sure to find quite rewarding.
However, I was hoping that we can discuss the possibility of increasing the proposed salary by 15%. My 13-year track record in (state field of expertise) and numerous contacts will help bring in further revenue to your organization.
So, please let me know if we can discuss this further before I can make a final decision regarding your offer.
Thank you for your time.
Respectfully yours,
(Your name)
Letter Requesting a Meeting
Dear Ms. M,
Thank you for offering me the position of (job position) at (company name). It seems like an interesting opportunity that I’m sure to find quite rewarding.
I would like to schedule a meeting with you regarding the benefits and salary you’re offering. With my unique skill set and 13-year track record in (state field of expertise), I feel that further discussion of my compensation package is warranted.
So, please let me know if we can discuss this further before I can make a final decision regarding your offer.
Thank you for your time.
Respectfully yours,
(Your name)
Wrapping Up
When you’re offered a job, the best way to request additional pay or benefits is to do it through a counter offer letter. It allows you to clarify exactly what your proposed changes are and why you believe you deserve them.
To do that, you need to research the company and typical price ranges for your position. This way, you can reach an agreement that benefits you and your employer.
We hope you found our counter offer tips helpful. If you have any questions, let us know in the comments.
