What is a counter offer letter from candidates?

A counter offer letter is a response that candidates send to employers asking for a larger salary than what was originally presented in their job offer. Some counter offers request more than an increase in salary and may ask for additional perks or benefits. Guides on how to counter offer generally recommend that candidates specify an amount; however, you may receive a letter that simply asks for more money.

Most counter offers come from candidates who received a higher salary offer from their current employer or from another company that recently interviewed them. Other candidates may have counter offers because they believe their skills and experience are worth more than the salary listed in the job offer. Take time to consider the offer you’ll provide in your response and present it in an appealing way to remind the candidate why your company is a great place to work.

What to include in your response to candidates

Your response should be brief and relevant as you explain whether or not you’re able to accept their offer. Elements to include in your counter offer response are:

• A professional greeting
• A message stating whether you accept the candidate’s offer
• Your enthusiasm for them to join the team
• A summary of the new terms you’re offering
• Reasons they should work for your company
• A statement asking them to provide a prompt response to your terms that may include a deadline
• A professional sign off and signature

Things to remember when answering a candidate’s job counter offer letter

When considering how you’ll respond to a candidate’s counter offer, meet with your accounting or financial team to determine if you’re able to give them the requested salary amount. If this isn’t an option, decide if there are other options you can offer, like paying part of their healthcare premium, guaranteeing career advancement opportunities, or providing additional paid time off.

When you’re drafting a response, try reminding the candidate why your business stands out from competitors and the benefits they’ll get from your initial offer. Think about the value this candidate provides and how well they would fit into your company culture. If they seem irreplaceable, try to create a response convincing them to take the offer. Analyze the other candidates to determine if it would be better to send an offer to one of them instead. This should help you determine the best way to respond to the candidate.

Find the right counter offer letter example for your situation

The counter job offer letter example that best suits your needs depends on what type of response you intend to give.

Agreeing to the counter offer

If you realize your company can accept the candidate’s counter offer, craft a response informing them of this. Remain positive, professional, and enthusiastic throughout the letter, letting them know how much you’d like them to work for your company. Make sure your response is prompt to keep their interest.

An example of an acceptance letter is:

Dear Ms. Anderson,

I’m writing in response to your requested salary upgrade. After carefully considering your proposed terms, we’ve decided to accept your counter offer. We’re excited to have you on the team and hope our new compensation terms motivate you to come work with our company. To confirm, the new offer you’ll receive is an annual salary of $60,000 per year, 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,

Avery Johnson

Disagreeing with the counter offer

If you’re unable to match their counter offer and would rather rescind the offer and pursue a new candidate, your response can disagree with the counter offer and request to move on to a new candidate. However, a better option is to explain that the current offer is all you’re able to provide them and then mention why working with your company is still the best choice for them.

Here’s an example:

Dear Mr. Henry,

I’m writing in response to your proposed changes to the terms in the original offer letter we sent. While you are a strong and ideal candidate for this role, we’re unfortunately unable to meet the salary requirements you’ve laid out. Though we aren’t able to match your requirements currently, our business is in the process of growing extensively, so potential bonuses and raises are 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 salary terms and respond with your answer at your earliest convenience. We’d love to have you on our team.

Sincerely,

Taylor Kennedy

Being open to more discussion

If you’re unable to meet their desired terms, let them know you’re open to further negotiations. You could also consider offering any additional benefits and perks you have available for them in lieu of a higher salary. Here’s an example:

Dear Blake,

I’m writing to let you know I’ve received your counter offer with new terms in response to the original job offer. While I believe you’re an impressive candidate and an excellent fit for the role, I’m unable to offer you your desired salary amount;. However, I would be open to discussing a slight salary increase, plus other additional valuable perks and benefits. This includes a full medical insurance plan covering vision, dental and basic healthcare that we partially fund, guaranteed advancement opportunities if you continue performing exceptionally and 14 paid days off, instead of the original offer of 10 days.

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

Sincerely,

Alex Jacobson

FAQs about counter offers

How do I send a reply to a counter offer?

Normally, you would answer a counter offer in the same way the original message was sent. If you received a counter offer email or text, reply via email or text. For a counter offer sent via U.S. mail, mail a letter but keep a copy for your records.

How quickly should I send a reply to a counter offer?

Prompt replies can help increase the likelihood that your preferred candidates will accept your offer. Send a response as soon as possible, but always make sure to verify with accounting that any offer is in line with the budget first.

What if a candidate does not make a specific counter offer?

How you proceed when a candidate simply asks for a higher pay rate is ultimately up to you. One option is to reply and ask what figure seems fair to them and then use their response as the basis for negotiation. Alternatively, you can reevaluate your original offer and simply reply with a higher hourly rate or salary. This may save you the time communicating back and forth with the candidate, but it may also mean that they simply reject your new offer.

What perks can I offer a candidate if I can’t accept their counter offer?

Start by examining your benefits package. Did you remember to tell the candidate about cafeteria plans that provide extra value? Consider whether or not your company can cover more of their insurance premiums to increase their take-home pay. Additional or unlimited paid time off, career development programs, free parking, work-from-home opportunities, and flex schedules are other appealing perks. You can also propose a milestone program that guarantees pay raises at specific points in time, such as when they complete training, reach a certain length of tenure, or complete a job task or project.

What if I need to rescind an offer?

Rescinding an initial offer or an offer made in response to a counter offer could leave your company in legal jeopardy, especially if the candidate has already accepted the position. Consult with an employment lawyer for advice before communicating with the candidate or new hire to help minimize exposure to lawsuits.