What is a salary negotiation email?

A salary negotiation email is a written request for a higher salary. New hires may send one as a counteroffer to an initial offer letter. Salary negotiation emails are often sent after the interview process, once a salary offer has been extended. Current employees may try to negotiate a salary by email if they’re not satisfied with their current rate of pay.

Salary history may be referenced in negotiation emails, and in some regions, there are laws restricting questions about salary history. The optimal time to negotiate salary is just before accepting the salary offer.

Related:Salary Increases: Best Practices for Leaders to Consider

Understanding Job Offers

Before you begin any salary negotiation, it’s important to fully understand the job offer in front of you. A job offer typically outlines not just the salary, but also the benefits, perks, and expectations associated with the position. Take the time to review every aspect of the offer, including the compensation package, to see how it aligns with your salary expectations and long-term career goals. Consider the market value of the role by researching industry standards and comparing similar positions at other companies. Understanding the company’s budget and how your skills fit into their needs will help you negotiate a fair compensation package. Entering the hiring process prepared with this knowledge allows you to discuss your salary expectations confidently and ensures you’re advocating for a fair deal that reflects your value in the market.

Determining Salary Expectations

Setting your salary expectations is a crucial part of the job search and salary negotiation process. Start by researching the market value for your desired position using resources like Glassdoor, Indeed, or industry salary surveys. Look at the average salary range for similar roles in your location and industry, taking into account your experience, education, and unique skill set. It’s important to establish a realistic salary range that reflects both your qualifications and the value you bring to the company. Additionally, determine your minimum acceptable salary—your walk away point—so you know when a job offer doesn’t meet your needs. When discussing salary with the hiring manager, be prepared to explain your expectations with data and examples from your research. This approach demonstrates that you’re informed, reasonable, and focused on finding a fair agreement for both you and the employer.

Evaluating Benefits Beyond Salary

When considering a job offer, don’t focus solely on the base salary—look at the entire compensation package. Benefits such as health insurance, retirement plans, paid time off, and additional perks like stock options or signing bonuses can significantly increase the overall value of your offer. Some employers may not be able to offer a higher salary but can provide additional benefits that enhance your total compensation. Consider what’s most important to you, whether it’s more paid time, flexible work arrangements, or professional development opportunities. By evaluating the full compensation package and negotiating for additional benefits, you can ensure you’re receiving a fair and competitive offer that meets your needs and supports your long-term goals.

Steps to Take Before You Respond to a Salary Negotiation Email

Before crafting your response to a salary negotiation email, take time to thoroughly review the job offer and research the market value for the position. Compare your salary expectations with the company’s budget and the industry standards for similar roles. Prepare your negotiation strategy by identifying your target salary range and any additional benefits you’d like to discuss, such as bonuses or extra vacation days. Practicing your negotiation skills can help you feel more confident and prepared when discussing your compensation package with the hiring manager. By taking these steps, you’ll be ready to respond professionally and effectively, increasing your chances of securing a fair compensation package that reflects your value and meets your needs.

Negotiation Strategies for Email Communication

Negotiating salary via email requires a thoughtful and strategic approach. Begin your email by expressing appreciation for the job offer and enthusiasm for the position. Clearly communicate your salary expectations, referencing your research on the market value and industry standards for the role. Specify your target salary range and mention any additional benefits you’d like to discuss. Use polite, professional language and focus on creating a collaborative conversation rather than making demands. By maintaining a positive tone and being open to compromise, you can foster a productive dialogue that increases the likelihood of a successful salary negotiation. Remember, effective email communication is about building rapport and finding a solution that works for both you and the employer.

Steps to take before you respond to an attempt at salary negotiation by email

After you receive an initial counteroffer or pay increase request, determine whether the proposed pay rate is fair by comparing it to the average pay, average salaries, and market average for similar positions. Use market data and industry benchmarks to benchmark the offer and ensure it aligns with current standards. Consider the cost of living in the relevant location, as this can significantly affect salary levels. Check if the proposed salary fits within the company’s budgeted range and whether it falls within the low range or high range of what the company pays for similar roles. Use salary research to inform your evaluation and ensure your decision is data-driven.

Before responding, review any previously discussed salary requests or agreements. Also, consider the total salaries budgeted for the team or department when making a decision. If you believe the request is fair or that you could potentially offer more money, consult HR and your immediate supervisor. Make your case for the candidate or employee. When you need to wait for a decision, send an email thanking the person for their request. Assure them that you’re considering it. Never accept a proposal until you have approval from HR and management.

Related:10 Salary Negotiation Strategies for Employers

Salary negotiation email reply examples

Here are example email templates to help you reply to salary negotiation attempts by email. The following templates can serve as a starting point for your communications. For related guidance, such as how to send an interview confirmation email, feel free to customize and modify them as needed to fit the situation and reflect your company culture.

Before you respond, consider these quick tips: be clear and professional, address the candidate’s concerns directly, and always keep your company’s compensation guidelines in mind.

When you can accept the pay requested for a new hire

When you can accept the pay requested, share the news early on and confirm the amount of the new offer. Mention any benefits and perks included in the company’s total compensation package, such as a signing bonus, additional vacation days, and other benefits, and express your desire to add the candidate to the team.

Dear Mr. Hassan,

Thank you for replying to our initial offer. After discussing the matter with our team, I am pleased to say that the requested salary is doable. To confirm, your salary for the Marketing Specialist position will be $60,000 per year. The company’s benefits package also includes a 401(k) retirement plan with a 3% employer match, 3 weeks of paid time off per year, health, dental, vision, life and disability insurance coverage, and a signing bonus. Additional vacation days and other benefits may also be included as part of your total compensation package.

I’m eager to add you to our team. Please let me know if you have any remaining questions about the position. If not, we can set your start date and move forward. For employers interested in finding quality candidates, check out Indeed for Employers.

Sincerely,

Paul Gray

When you can accept the pay requested for a current employee

A reply to a salary negotiation email to an employee can be more casual. Ensure that you state the employee’s new salary and when it will take effect.

Dear Ernest,

Thank you for bringing your concerns about your current compensation to my attention. After discussing the matter with team HR and management, I am pleased to say that the requested salary is doable. Your new pay rate will be $60,000 per year, effective January 2.

The organization truly appreciates your valuable contributions and dedication. In addition to your new salary, your total compensation package includes other benefits and additional vacation days, reflecting our commitment to supporting your well-being and work-life balance.

Please let me know if you have any remaining questions or concerns, and thank you for all that you do to contribute to our success.

Sincerely,

Maria Sharpe

When you have a counteroffer for a new hire

If you can provide a counteroffer to a salary negotiation email, provide the figure and remind the candidate of everything their compensation will include. Briefly describe why your company is a great place to work.

Dear Ms. James,

Thank you for replying to our initial offer. You are an excellent fit for our Marketing Specialist position, and I’m eager to add you to our team in your new job. While I can’t accept your counteroffer at this time, I am able to increase our original offer to a starting salary of $60,000 per year for your new job. This offer reflects our company’s compensation philosophy and comes with a comprehensive total compensation package, which includes a 401(k) retirement plan with a 3% employer match, 3 weeks of paid time off per year, health, dental, vision, life and disability insurance coverage, a signing bonus, and other benefits.

As Company XYZ continues to grow, there are many opportunities for advancement, and we believe in hiring from within. Through programs such as management development and tuition reimbursement, we invest heavily in our employees, and I’m personally committed to creating an inclusive workplace that allows my team to balance the demands of work and home. I’m eager to add you to that team and hope you’ll consider our counteroffer, so we can make that happen.

Please let me know if you have any additional questions, and thank you for your interest in our position.

Sincerely,

Nicole Moore

When you have a counteroffer for a current employee

If you can offer a pay increase that’s lower than the requested amount, frame it in a positive light. Provide the new salary and the amount of the increase as a percentage, and include the effective date. Remind the employee about your benefits package and offer a new perk or benefit that could increase the chances of retaining the employee.

Dear Ahmed,

Thank you for bringing your concerns about your current salary to my attention. I appreciate all that you do to contribute to our success, and it’s my sincere desire to keep you as a member of our team. While I can’t accept your proposed salary at this time, I am able to offer a 5% pay increase, which will bring your salary to $60,000 per year. The salary increase will be effective January 2nd and will still include our full benefits package. Our organization is committed to supporting your growth and ensuring you have the resources you need to succeed.

In addition to your salary, our total compensation package includes other benefits such as health insurance, additional vacation days, and the possibility of a signing bonus for key milestones. I would also be open to exploring options such as a hybrid schedule or a 4-day week to give you more flexibility in your working hours. Please let me know if you’d like to discuss the possibilities, and thank you for everything you do.

Sincerely,

Darius Johnson

When you can’t accept the proposed salary from a new hire

When you can’t accept the figure requested in a salary negotiation email, restate your current offer and remind the candidate of the company’s compensation structure, focusing on the total compensation package rather than just salary. Then, outline your company’s selling points.

Dear Ms. Wilson,

Thank you for replying to our initial offer. You are an excellent fit for our Marketing Specialist, and I’m eager to add you to our team. While I can’t accept your counteroffer at this time, Company XYZ does offer merit-based pay increases, as well as opportunities to increase compensation through bonuses. Our offer remains at $60,000 per year with a company’s compensation structure that includes a 401(k) retirement plan with a 3% employer match, 3 weeks of paid time off per year, health, dental, vision, life and disability insurance coverage, and other benefits such as a signing bonus and additional vacation days that may be available as part of the offer.

As Company XYZ continues to grow, there are many opportunities for advancement, and we believe in hiring from within. Through programs such as management development and tuition reimbursement, we invest heavily in our employees, and I’m personally committed to creating an inclusive workplace that allows my team to balance the demands of work and home. I’m eager to add you to that team and hope you’ll consider our counteroffer, so we can make that happen.

Please let me know if you have any additional questions, and thank you for your interest in our position.

Sincerely,

Francesca Garza

When you can’t accept the pay raise request

If you can’t increase a current employee’s salary, say you’re open to discussing their current role and future goals. Mention some perks you could provide, and set up a time to talk face-to-face.

Dear Syd,

Thank you for bringing your concerns about your current salary to my attention. The organization truly appreciates your hard work and dedication, and it’s my sincere desire to keep you as a member of our team. Unfortunately, I can’t provide you with a pay increase at this time.

However, I would be open to exploring other benefits, such as additional vacation days, a hybrid schedule, or a 4-day week to give you more flexibility in your working hours. We could also discuss the details of our management development program, which could help open doors for you in the future. Let’s talk over lunch next week. Would Tuesday, January 6, work for you?

Sincerely,

Parth Chandra

Salary negotiation email FAQs

Why would a person choose to negotiate salary by email?

People may choose to negotiate salary by email because it provides a record of correspondence. With prospective new hires, much of the communication process usually takes place via email, making it natural to counter through the same format. Current employees may feel more comfortable asking for a raise in writing rather than face-to-face.

What are some alternatives to pay increases that I can offer to someone?

There are many perks and benefits you can offer to someone when a pay increase isn’t possible. More flexible scheduling, remote work opportunities, additional paid time off, a new space in the free executive parking lot and tuition reimbursement are some ideas.

Learn More: 18 Work Perks for Your Business to Consider