What is a counteroffer letter from candidates?

Candidates may send counteroffer letters to employers after receiving a job offer. The letter might request a higher salary or additional perks or benefits, such as more vacation days or a flexible work schedule.

If they request a higher salary, they may specify an amount. In some cases, they might simply ask if you can increase the pay. This lets you negotiate the salary and find a reasonable compensation for both parties.

Counteroffers often come from candidates who receive a higher salary at their current workplace or from another potential employer. Sometimes, they make counteroffers because they believe their skills and experience surpass the salary listed in the job offer. 

For example, a retail manager may have worked in clothing stores for five years with customer service skills and a familiarity with point of sale (POS) systems. When applying for your retail associate role, they may request compensation that aligns with that experience.

Determine whether you can fulfill their requests or if you need to counter with another offer. Then, write a response presenting your decision and reminding the candidate why your company is a great workplace.

What to include in your response to candidates

Your counteroffer response might include:

• Professional greeting
• Message stating whether you’re accepting or rejecting their offer
• Enthusiasm about the candidate
• Summary of the new terms you’re offering
• Reasons they might want to work for your company
• Request for a prompt response by a set date
• Professional sign-off and signature

What to remember when answering a candidate’s job counteroffer letter

Before responding to a candidate’s counteroffer, determine whether you can fulfill their requests. You may also need to get feedback from your accounting or financial team.

If you can’t meet their salary request, consider offering alternative options. For example, you might provide a cafeteria-style benefit plan, give additional paid time off (PTO) or vacation days or provide guaranteed career advancement opportunities.

In some situations, your company may not be able to meet a candidate’s needs. If that happens,  you might contact the next selected candidate and offer to them instead.

Find the right counteroffer letter example for your situation

As you decide how to respond to a counteroffer letter, you can review these examples: 

Agreeing to the counteroffer

If your company can meet the counteroffer, you can craft a response that accepts their terms. Remain positive, professional and enthusiastic throughout the letter, and let them know you’re excited they’re joining the team. 

Here’s an example of an acceptance letter:

Dear Ms. Davis,

I’m writing in response to your requested salary upgrade. After carefully considering your proposed terms, we’ve decided to accept your counteroffer. We hope our new compensation terms motivate you to want to work with our company. To confirm, we’re pleased to offer an annual salary of $60,000, as requested.

Please reply with your response to this new offer as soon as possible. We hope to have you on the team soon!

Sincerely,
Kezia Koo

Denying the counteroffer

If you can’t match the counteroffer, consider explaining why the current offer is the best you can provide and ask that they reconsider. 

Here’s an example:

Dear Mr. Kirwa,

I’m writing in response to your proposed changes to the terms in our original offer letter. While you’re a strong and ideal candidate for this role, we’re unfortunately unable to meet your salary requirements.

Although we aren’t currently able to match your requirements, our business is growing rapidly, and potential bonuses and raises may be available options for the future. We also have a strong company culture and training programs centered on improving workplace inclusivity and team-building skills.

I’d like to ask you to reconsider our original competitive salary terms; please respond with your answer at your earliest convenience. We’d love to have you on our team.

Sincerely,
Belinda Piccio

Inviting further negotiations

If you’re unable to meet their desired terms, you may let them know you’re open to negotiations. You might also consider offering additional benefits and perks.

Here’s an example:

Dear Meg,

I’m writing to let you know I’ve received your counteroffer to our original job offer. While I believe you’re an impressive candidate and you’d be an excellent addition to the team, I’m unable to offer your desired salary amount at this time.

However, I would be open to discussing a moderate salary increase, along with other valuable perks and benefits. This includes a full medical insurance plan covering vision, dental and basic healthcare that we partially fund and guaranteed advancement opportunities. I can also offer 14 paid days off, instead of the original offer of 10 days.

Please review these proposed terms and let me know your thoughts. We’d love to have you as a new team member.

Sincerely,
Bernard Smith

When determining how to respond to a counteroffer letter, consider every possible way to meet their needs. Finding a compromise can help retain a quality candidate, fill the position faster and avoid additional hiring costs.