- How do you respond to a low salary offer?
- 1. Take your time
- 2. Do your research
- 3. Have a plan to counter a lowball offer
- 4. Practice your negotiation tactics
- 5. Make your counteroffer
- Examples you can use to submit your counteroffer
- Dos and don'ts of responding to a low salary offer
- Key takeaways
You don’t have to accept a low salary offer. In this article, we’ll discuss how to counter a lowball salary offer and offer tips to ensure you’re paid what you’re worth.
Imagine this scenario: you've interviewed for a great job, met the team, and the company has checked your references. And they make you an offer! Great! But it turns out to be much less than you were hoping for, and even below the market norms — and you think they're "lowballing" you. What do you do? At that moment, you shouldn't do anything other than take a deep breath. This sort of thing is fairly common, and it doesn't mean it's the end of the road for this job. Don't take a low offer personally. Most employers wouldn't invest time in recruiting, interviewing, and hiring a top candidate only to deliberately insult them with a lowball salary offer.
In this article, we’ll discuss the five best methods on how to respond to a low salary offer, including:
What to do when you get a lowball job offer.
Five practical tips to negotiate a low salary offer.
Mistakes to avoid when responding to a low job offer.
How do you respond to a low salary offer?
A “low salary offer” (colloquially known as a “lowball”) is when a company offers a salary to a potential employee that is below what that employee deserves. It's often based on a business' budget, a candidate’s background, and/or market research. The important things to remember are that this is rarely a final offer, it is possible to negotiate for a higher salary, and it doesn’t have to be a complicated, antagonistic process.
Remember, you don’t have to accept the salary just because that’s what they’ve offered you. A professional negotiation, backed up with the appropriate research and data, will help you get the best offer without causing any hurt feelings. It also allows you to walk away if it's just not right for you.
Consider the following five practical tips to respond to a salary offer that is lower than you had hoped for:
1. Take your time
It's important to not make a "knee-jerk" reaction and reject the offer right out of the gate. No matter what form the offer came in — email, phone, or in person — you need to take some time to think it over, even if you think it's insultingly low. You might be tempted to express your disappointment in the salary offer but resist the urge. First, ask for the offer in writing, mainly so there’s no confusion but also so you can see the whole package, which might include health insurance, PTO, retirement accounts, and so on. Be polite when asking for some time to consider the offer, and let the company know when you’ll give them an answer. And if the hiring manager asks why you need the time, stay neutral and positive. Don’t give in to any pressure to answer on the spot.
2. Do your research
You need to know the market rate for your position. Consider utilizing salary research sites such as Payscale or Salary.com to check out average salaries in the region where the job is located. You might find that the offer wasn't as low as you thought, and that’s helpful information as well. You’ll be able to more effectively determine if the offer you’ve received is indeed too low, and the data will provide you the needed support when you go to negotiate. Remember, the more information you have, the better you'll be able to craft an effective counteroffer.
3. Have a plan to counter a lowball offer
Before submitting a counteroffer, think about the salary you’d like, but also consider the minimum amount you’d accept, otherwise known as the “floor.” Don’t share this with the hiring manager, because that’s the amount they’re likely to offer you. What your “floor” does is give you a reference point, and if they can't meet that, you're not going to accept the offer. If you know that to make a comfortable living you need a salary of $75,000 (and it is above your “floor") this is a good starting point. If they can't match it but are willing to offer other benefits in place of a higher salary, such as more PTO, make sure you’re clear if that works for you.
4. Practice your negotiation tactics
Don’t go into a salary negotiation without being fully prepared. Even if you have the best salary information and data at hand, it won’t help much if you can’t communicate it effectively. You might even write it out like a script so that you know exactly what you need to say, keep your facts and figures straight, and minimize your chances of getting flustered in the moment. Find a friend or family member to work with you and get their feedback.
5. Make your counteroffer
When you’re ready to approach the employer, keep in mind four things when submitting your counteroffer:
Be positive, and reiterate your interest in the position.
Mention that their offer is below your salary range, but you'd like to counter with an amount to close that gap.
Your actual counteroffer, including a brief summary of your research, data, and reasoning.
Offer a genuine “thank you” for their time and attention.
After submitting a counteroffer, generally, one of two things will happen: they’ll accept your offer, or they won't. They might counter your counter with another counter! But if this offer is above your "floor," and you really want the job, you can accept it graciously. But if it's still lower than you've asked for and is below your "floor," it's important to know your worth and be willing to walk away.
Statistical Insight
According to Forbes, 70 percent of hiring managers expect to negotiate a salary offer, but most won’t tell you that. In this scenario, 46 percent of men are likely to negotiate, but only 34 percent of women do. This is important because statistics have shown that making a counteroffer raises your starting salary by an average of 7.4 percent.
Examples you can use to submit your counteroffer
When putting your counteroffer together, you can use this as a template. Remember to modify it to match your tone and personality, while still remaining professional.
Example 1 Asking for time to consider the offer Subject: [Name of person who made the offer]’s verbal offer Marsha, Thank you very much for the exciting job offer. I'd like 48 hours to consider the details and discuss it with my family before giving you my answer, if that's all right. Thank you again, and I will get back to you by [date]. Sincerely, [Your name] [Contact information] |
Example 2 Counteroffer: asking for a higher salary Subject line: [Your full name] Job offer Marsha, Thank you again for offering me the position of [name of position]. I hold [XYZ company] in very high regard and I truly believe that my background and expertise in [name of field] would be a good match for this role. I have thoroughly reviewed the offer, but I would like to return to the details of the base salary. With my [1-2 examples of skills, strengths, or accomplishments], I believe I can begin to contribute to [XYZ company] right away. Your offer includes a base salary of [$X]. After doing my research with the US Bureau of Labor Statistics, Payscale, and Salary.com and focusing on comparable positions in the [X market], I believe a salary of [$X] would be more in line with my background and skills, as well as the value I would bring to [XYZ company]. Do you have any flexibility in the salary you can offer? I look forward to hearing your thoughts. I’m very excited about the idea of joining the team at [XYZ company], and I hope we can come to a mutually beneficial offer. Yours truly, [Your name] [Contact information] |
Dos and don'ts of responding to a low salary offer
Salary negotiations can be challenging under the best of circumstances. It can be hard to talk about money, and you might fear losing the opportunity or feel you have to accept a lowball offer. But being prepared and knowing what you should (and shouldn’t) bring to the table can make the difference between living paycheck to paycheck and being paid what you’re worth.
- Think of salary negotiation as a collaborative process and an opportunity to create a compensation package that works for both parties.
- Be clear about your expectations.
- Be polite and professional. A hiring manager is more apt to accommodate the requests of a person who demonstrates respect.
- Accept the job before making a counteroffer if the salary doesn’t meet your expectations.
- Give an ultimatum. The employer might feel like you’re trying to intimidate them.
- Don’t assume rejection of your counteroffer is the end of the negotiation. It can take several rounds of going back and forth.
This may all seem like a lot — because it is. Hundreds of books have been written on the art of negotiation, and there are sure to be more to come. But it’s not impossible. Doing your research, having confidence in yourself, and knowing your value will make it easier to ask for what you want in your career.
Key takeaways
A “low salary offer” is when a company offers a salary below what that employee deserves.
When proposing a counteroffer, it’s important to take your time, do your research, and have a plan.
Salary negotiation is a collaborative process as well as an opportunity to create a compensation package that works for everyone involved.
