Write a Salary Negotiation Letter

Starting a job you want with a company you love is only as good as the compensation package you're offered. In most cases, you don't want to simply accept the initial offer without a little negotiation to see if you can get more. Keep in mind there is almost always room to negotiate – they want you, or they wouldn't have made an offer. To write a salary negotiation letter, you must have a good idea of what you want, what you're worth, and what the company has the ability to provide. While you can't have perfect knowledge, the more you know, the more you can help yourself negotiate a higher salary with better benefits right out of the starting gate.

Steps

Evaluating the Initial Offer

1. Find out the specific duties of the job offered. You cannot adequately assess whether the initial offer is on part with what you would get from another company until you determine exactly what the responsibilities will be for the role you've been offered.
   • Understanding what the job entails can also help you assess whether they've offered you an appropriate job title. While the job title may not matter all that much to you, it can put you in a better position to negotiate raises later on.
   • For example, if you notice that you will be supervising several employees according to the job description, and that people in similar positions in other departments have words like "senior" or "supervisor" in their job titles, you may want to negotiate a similar title for yourself.
   • Understanding specific duties also gives you the ability to compare the company's initial offer to offers by similar companies for similar positions. If the position is clearly entry-level, you would want to compare it to entry-level positions in similar companies.
   • However, if the job offered includes some supervisory or managerial functions, you may want to compare it to more high-ranking positions in your industry.
   • Keep in mind that here you're looking at what is offered for this job, not what you personally might be worth. If you are over-qualified for the job, you typically can't expect to be compensated for the degree to which your qualifications exceed those required for the position.
   • For example, if you have two years' experience in your field, but you are offered an entry-level position for someone with no experience, you may not be adequately compensated – at least initially – for the two years' experience you do have.
2. Get the initial offer in writing. Once the recruiter or hiring manager presents you with an offer, ask for them to put it in writing. This not only allows you to evaluate the offer on your own time, but ensures they can't change the offer later.
   • Even if you're happy with the initial offer, it's typically in your best interests to take it home and evaluate it outside the pressure of the interview setting.
   • Find out how long you have to consider the offer. Typically companies are just fine with giving you a few days, but you may encounter resistance if you need any longer than that.
   • Break the initial offer down into the base salary and any benefits offered. Assigning a monetary value to the other benefits offered can give you the overall compensation offered.
   • Take note of any benefits you don't care about, as you can use these as bargaining chips. For example, if the company has offered you a gym membership, but you already have a gym in the building where you live that is comparable to the membership, you may not want the membership. It would be more beneficial for you if the company placed that value elsewhere.
   • Fully research all aspects of the benefits offered and think about how they will work in your life. For example, if your family lives several states away and you try to visit them at least a couple times a year, paid vacation time may actually be more valuable to you than other benefits.
3. Compare the initial offer to your ideal. You probably had some idea before you even applied with a company the amount of compensation and levels of benefits you'd prefer to receive. Look at the initial offer in light of what you want to see how it stacks up.
   • Based on your assessment, come up with some options you feel comfortable presenting to the hiring manager to negotiate higher compensation.
   • If there are certain items, such as paid vacation or paid sick leave, that are more important to you than others, make a note of this and figure out what you'd be willing to give up to get what you wanted in those areas.
   • Keep in mind that you should be looking at base salary first. If the base salary isn't anywhere near what you expected, and the company is unable to meet your expectations, the company may not be right for you at this time.
   • Look for areas that are unaddressed in the offer where you might be able to negotiate greater value. For example, if taking the position would require you to move to another state, you may be able to negotiate some payment of relocation expenses.
4. Find out how the compensation was determined. While it can be difficult to get full information, the better an idea you have of how the hiring manager decided specifically what to offer you, the more ability you have to negotiate better terms.
   • When you receive the initial offer, ask the hiring manager or recruiter to explain how they arrived at that amount.
   • Typically you'll have more room to negotiate if the offer was calculated specifically for you, rather than simply being the same offer they make to all new hires.
   • The more information you can learn regarding how the initial offer was determined and who came up with it, the better you can find ways to negotiate higher value.

Making a Counter-Offer

1. Format your letter. Even if you're sending your letter using email, you want to use a formal business format and address your letter to a specific person – typically the person who presented the original offer, unless they've indicated you should direct correspondence to someone else.
   • If you're addressing the letter to someone other than the person who presented you with the initial offer – say, because your initial offer was provided by a recruiter or other interviewer on behalf of the person who will actually be doing the hiring – mention the person with whom you spoke by name.
   • Generally, your text should be single-spaced, with a double-space between paragraphs.
   • When you're ready to sign off, use your full name and a closing such as "thank you." You may want to include your phone number under your name if you're not printing the letter on letterhead or sending it from an email address that has a signature line that includes contact information.
   • If you're sending your letter using email, make sure you're using an appropriate email address. If you have a cutesy email address that you use for personal communication, set up another one with a free provider that you can use for more serious, business communications.
2. Thank them for the offer. Begin your letter by thanking the person for the initial offer, and be specific. Include the title of the position and location where you will be working. You might also want to mention job responsibilities if they bear relevance to skills or experience you intend to highlight.
   • For example, if you were offered a position in the company's offices in New York City, but you live in Chicago, you probably should include the location when you thank them for the offer, especially if you plan to ask them to cover some of your relocation expenses.
   • If the job title is at issue, make sure you list the job title you were offered exactly, so you can ask for it to be changed.
   • Close this first paragraph with a statement that you are excited about working for the company and believe you could contribute a lot, or provide significant value.
3. List the reasons you are worth more. Highlight points on your resumé that show you have experience or education that should command a higher salary or greater benefits. Here you can use the knowledge you gleaned about how your offer was determined, and bring up or expand on aspects of your background they may not have taken into consideration.
   • For example, if you know that the offer you received is the same offer the company gives all new hires, you can point out the additional value you bring to the position, or the experience you have that many other new hires may not.
   • You also have the opportunity to include information you may not have noted on your resumé, or to expand on the brief descriptions of your experience that you already gave them.
   • To this end, you may want to think about what hypothetical person they have in mind who is worth that initial offer. Then you can explain how you are worth more than that hypothetical person.
   • Try to keep this paragraph brief, but focus on specific examples that demonstrate you are worth more than the compensation in the initial offer.
   • If what you want is less about getting more money and more about something such as a change in job title, provide reasons for your request based on what you know about the job responsibilities of the position they've offered you.
   • If you're asking for the company to help cover relocation expenses because you have to move to accept the position, keep in mind that they may decide they could simply hire someone who already lived in the area. You want to show that you have unique value to add and that they won't find anyone comparable to you for less.
4. Set out your terms. Based on the reasons you've described, state a specific salary you want, including additional benefits or other options. While you don't want to ask for an amount that's too high, you still want to leave room to negotiate.
   • If you're willing to exchange certain benefits for others, state this clearly. For example, if you have no need for the reserved parking spot because you don't have a car, but would like a week more of paid vacation time than was initially offered, you might present this exchange.
   • Be careful not to state your terms as a demand, but as a counter-offer. Stress that you're open to discussion.
   • If you have other job offers from other companies, you might be able to mention these and use them as leverage.
   • However, don't make up offers that you don't have – you don't know who the hiring manager or others in the company know in the industry. If they are able to find out with a quick phone call that you never received such an offer, even your initial offer may evaporate.
5. Ask for an appointment to negotiate. While you're setting the stage for salary negotiation through your letter, you ultimately want to sit down with the hiring manager and talk face to face rather than haggling through letters back and forth, which can be time-consuming and tedious.
   • Asking for an appointment sends a message to the hiring manager that you value their time and aren't interested in drawing out the process.
   • If you have specific dates in mind, you may want to include them – particularly if a face-to-face meeting would require you to travel.
   • If you are looking at working for a company several states over, and would not be able to travel to them, you typically can set up a meeting over the phone or online.
   • You want to give your letter enough time to get there if you're mailing it, so don't pick dates too close to the date you're writing your letter. At the same time, you don't want to set them too far out – you want to strike while the iron is hot.
   • Generally, try to plan for a meeting within a week or two of the date you've sent your counter-offer, barring any holidays.
6. Send your letter to the hiring manager. Often sending your letter electronically will be preferable to using the mail, because you can avoid unnecessary delays. If you use email, make sure you have a direct email address for the hiring manager who presented the initial offer.
   • Physical mail is fine, if a bit old-fashioned, but be wary of sending this letter over a fax. Faxes may be seen by many people in the office who have no business knowing the details of your salary negotiation.
   • Generally, you want to follow the method initially set by the company that extended the offer. If they communicated your initial offer to you using email, this is the best method to use to send your counter-offer.
   • If they mailed you a formal offer letter, responding by mailing a paper letter is the way to go, unless the letter with the initial offer indicated otherwise.
   • Regardless of which method you choose, your counter-offer should be in writing so you have a written record of the negotiations.

Negotiating in Person

1. Make an appointment. While you want to set your appointment as soon as possible, you may want to give yourself a few days if you need to research the market or otherwise solidify your position before you talk to the hiring manager.
   • Keep in mind that before your appointment, you may need to do some additional research on the market and on your value. While this shouldn't take more than a few hours, you don't want to show up for this appointment unprepared.
   • You also need to come up with a general range of compensation you'd be willing to accept, as well as some alternative arrangements in case certain aspects of your compensation, such as the base salary, are not negotiable.
   • Follow the hiring manager's lead in terms of where to have the meeting, if you're located in the same city or general area as the company and can easily travel there.
   • Generally speaking, it will be more convenient for them to hold the meeting in their office or in a company conference room, but they may offer to meet at a restaurant or café.
2. Find out how much leeway the hiring manager has. One of the first things you should try to nail down when you start the conversation is just how much power the hiring manager has to set your compensation or offer you more benefits.
   • For example, you might say something like "Before we get into discussing the specifics, I'm curious just how much control you have over the terms of the offer."
   • If they ask you what specific items you have in mind, feel free to tell them. Don't worry about aspects of the initial offer with which you're happy – you're only interested in negotiating about items that you think should be different.
   • Generally, the hiring manager or other person with whom you're meeting should let you know clearly if there's anything they have no power to change. They may be more reticent about things over which they do have direct authority.
3. Assert your position. You should have several possibilities in mind that you would be willing to accept. Assuming the hiring manager rejects the terms you asserted in your letter, offer something a step closer to the initial offer and see what happens.
   • Keep in mind that they want you – otherwise they wouldn't have extended the offer. And this person wouldn't be meeting with you if the terms of that offer weren't up for negotiation.
   • Have confidence in your skills and abilities, and continue to sell yourself and your expertise throughout this meeting.
   • Generally, you don't have to worry about losing the initial offer. This time before you accept that offer is when you potentially have the most bargaining power, because you are perceived as an asset the company wants to acquire.
   • If your first counter-offer is rejected, be ready to come down a little, but don't simply give up after the first rejection. It's likely the hiring manager will simply reassert the initial offer, or maybe move a little.
   • If the hiring manager isn't moving very much toward your position, you may want to try a different angle. Based on your research and your understanding of the initial offer, look at other areas where you can potentially increase compensation, such as negotiating for more paid vacation time or sick leave, or asking for a signing bonus.
4. Listen to the response. When the hiring manager talks, pay attention to what they're saying and try to figure out what it means for you. If the hiring manager has little control over the terms of your offer, maybe you can find out who does.
   • The hiring manager's response will give you clues as to what they are able to do, as well as what they are willing to do for you personally.
   • You also may learn a little about how you are perceived by the company. You have significantly greater bargaining power with a company that really wants you, or that has been trying to fill this position for a relatively long time.
5. Assess your options. At this point, what you decide to do depends largely on the hiring manager's response. If the hiring manager isn't willing or able to provide the salary and benefits you want, you have to consider whether you want to take the job at the terms offered or keep looking.
   • Avoid agreeing to something less than what you expected with the idea that you'll just work there for a couple months and then move on to something else.
   • Unless you're currently unemployed and have no other options, it's not fair either to you or to the company to sign on with the idea that you're only there temporarily. If they wanted a temporary employee, they would have worked through a temp agency rather than offering a salary band benefits to you.
   • Even if you're not able to get what you want off the bat, find out what the possibilities are for raises or promotions – and get any promises made in writing.
   • If you and the hiring manager are able to come to an agreement, make sure you get that in writing as an amended offer. Once you sign off on that, you're hired and ready to start your new job.

References

See also

• Be Happy with Your Wages
• Increase Savings from Salary
• Calculate Your Annual Salary when You Work Part Time
• Get a Pay Raise
• Calculate Your Worth As an Employee
• Research Salary Ranges and Benefits for a Dietitian
• Pay Severance
• Negotiate Relocation Assistance
• Negotiate Pay
• Make a Job Offer to Prospective Candidates

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