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There may be times when a candidate or current employee contacts you via email to begin salary negotiations. Good communication is especially important when replying to a salary negotiation email sent by a prospective hire or current employee, as your response can affect their interest, motivation and performance. By learning some best practices and reviewing sample templates, you can be in a better position to effectively conduct a salary negotiation by email.

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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. Current employees may try to negotiate a salary by email if they’re not satisfied with their current rate of pay.

Related: Salary Increases: Best Practices for Leaders to Consider

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. Consider how much others in similar positions with more or less experience make, and factor in what the person attempting a salary negotiation by email brings to the table.

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

Email sample templates can make replying to an attempt to negotiate salary by email simpler. The following templates can serve as a starting point for your communications. Feel free to customize and modify them as needed to fit the situation and reflect your company culture.

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 total compensation, 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. Our benefits package also includes a 401(k) retirement plan with (a) 3% employer match, 3 weeks of paid time off per year and health, dental, vision, life and disability insurance coverage.

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.

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.

I hope our acceptance of your pay increase request shows how much we value your contributions to our team. 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. While I can’t accept your counteroffer at this time, I am able to increase our original offer to $60,000 per year. This offer comes with our benefits package, which includes a 401(k) retirement plan with a 3% employer match, 3 weeks of paid time off per year and health, dental, vision, life and disability insurance coverage.

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.

I would be open to exploring other 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 benefits package included. 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 benefits package that includes a 401(k) retirement plan with a 3% employer match, 3 weeks of paid time off per year and health, dental, vision, life and disability insurance coverage.

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. 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. Unfortunately, I can’t provide you with a pay increase at this time.

I would be open to exploring other options such as 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

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