COUNTER OFFER: Definition & How It Works

Counter Offer
Connor Clark-Lindh – Medium

In the business world, a “counteroffer” is a term that individuals and managers come across during business negotiations and transactions. This guide will show you what a counter offer letter is and how to counter offer a salary structure. 

Counter Offer Letter

A counteroffer is a response to an offer that was not accepted and a new one was made in its stead. The counteroffer provides the initial offer to either accept, decline, or make a new offer.

Many times, the best way to use a counteroffer is through the use of a letter or email, which will make it more formal or official. 

A counteroffer letter is the individual’s response through writing a letter or email to reply to the business’s initial work offer. Candidates often emphasize their ongoing involvement in a job role in a counteroffer letter, however, they also request a revision in the terms of the previous deal.

The Advantages of Writing a Counteroffer Letter

There are several motivating factors why you should submit a counteroffer in writing instead of just seeing or contacting a firm, these include:

  • It has the potential to put you at rest: A counteroffer letter is perfect for candidates who are hesitant to negotiate face-to-face.
  • It could benefit your writing abilities: Powerful and successful writers are in the ideal position to create a counteroffer since they can express themselves properly in a more civil way.
  • The exchange is simple to record: Writing down your thoughts creates handy documentation. Any agreed-upon adjustments are documented in writing through the transmission of letters or emails.

When You Should Send a Counteroffer Letter

More than knowing that there is something like a counter offer letter that you can use, it’s more important to know when you should make use of it. The following will help you with that:

New Position/Salary

You should send a counter offer letter when you want a particular role that you merit. Or when you are dissatisfied with the initial salary package offered by a firm, then consider writing a counter offer letter. For instance, if the proposed income is too poor for your demands or expertise, or if you believe the compensation package is lacking important advantages, such as an acceptable amount of compensated holiday days, you may wish to make a counteroffer.

Organizations will usually consider a counteroffer, even if they do not approve every (or any) of the demands in the proposal.

New small organizations, for instance, with restricted finances, may refuse your proposal if you can’t surpass a certain salary range for your function.

Furthermore, organizations of any size might withdraw counteroffers if they are insulted or dissatisfied with your proposal.

Companies can lawfully revoke an employment offer at any time since employees in all states, with the exception of Montana, are “hired at will”—that is, both the company and the employee have the freedom to end the job at any time.

How to Choose a Counteroffer

When choosing a counteroffer, salary is a key issue to consider—specifically, how much you need to effectively satisfy your demands in the location where you reside. However, it is essential to consider the entire remuneration package. Explore other non-salary remuneration modifications you can request, including moving expenses, insurance, signing bonuses, holiday and sick days, as well as other perks. 

You might also provide incentives particular to your workplaces, such as office space, durations, or freelancing choices.

Using an electronic salary calculator, research the usual income for people in the position you desire, both inside the firm and nationally. You may make a better-informed judgment about your preferred career if you have a perspective of your own worth.

What Should a Counteroffer Letter Contain?

Find things simpler for the company to consider and approve the requested revisions to the initial offer by presenting them clearly. You should consider the formats when writing a counter offer letter. 

#1. Header

Compose your letter to be up to standard with the business letter format. Provide a header with the employer’s contact details and yours. The letter should be addressed to the employer.

#2. Introduction

Start by highlighting your passion and interest in the organization and one or two important reasons why you are an excellent candidate for the position. This will help the employer recall the reason you were hired and see the “why” you deserve the additional pay or bonuses.

#3. The Letter’s body/Message

You can seek an appointment with the employer in the body and be broad about the adjustments you desire until the appointment. Alternatively, you can state the particular modifications in the letter itself. If you choose the latter option, write a brief paragraph for each component of the benefits package that you wish to barter. Thoroughly outline the initial offer, your counteroffer, and the reasons you feel the counteroffer is suitable in each paragraph. For instance, after stating your original and desired salaries, clarify that their proposal was less than the national average income for the position.

#4. Summary

Make it perfectly clear how realistic your offer is and how pleased you are to work for the organization. You could also offer to meet with the employer in person to explain the issue more, or just inform them to contact you.

If you’re sending the counteroffer letter through email, you should write in the subject line “your name-Job offer”. It will help the employer know what to expect in your letter. 

How to Write Salary Counter Offer Letter: Vital Pointers

These principles on salary counter offer will help you explain your expectations to an employer successfully:

#1. Use Specific Explanations That Support Research.

If you give specific explanations for why you believe you deserve a raise or perks, there is a high chance of getting favorable feedback. Explain your desired remuneration plan in terms of your degree of experience, market rates for the role, and the regional cost of living. Making requests that go well beyond industry standards can make you appear unprofessional.

#2. Share Other Career Opportunities

If you have a competitive job offer, inform the employer so that they can increase the game and give a greater salary package in order to keep you from taking the other position.

#3. Make Your Sought-After Abilities Stand Out.

Employers will value you more if you have special abilities that are difficult to come by in your field. To bolster your argument for more salary or bonuses, make sure to include these sought-after abilities.

#4. Make Requests Instead of Demands When Expressing Your Desires.

Do not adopt a harsh tone when explaining what you desire. You can use kind, unbiased language.

Ensure to use language that doesn’t reveal your emotional condition, such as “I’d be more comfortable with…” Don’t disrespect the firm or the person in charge of the deal.

#5. Take Your Time

It’s important to devote some time to research before you start negotiating because you’ll need a great deal of information to create a reasonable counteroffer. Begin by delivering a letter of appreciation for the job opportunity and setting a communication schedule.

#6. Don’t Push Yourself Too Much.

Consider why you’re negotiating: are you bargaining because you truly believe the position warrants a higher wage, or are you doing it without a strong reason? If you are satisfied with the offer, you may choose not to push too hard for a bit more. The best salary job counteroffer results in a resolution that is satisfactory to both the employee and the employer.

#7. Don’t Go Overboard.

When it comes to counteroffering salary for job negotiations, there are some factors that will hurt your case. There are certain things that you shouldn’t say when discussing compensation with a potential employer.

#8. Determine What Is Most Important to You

Depending on your conditions, you’ll negotiate differently. Obtaining a job offer after two years of unemployment is different from getting a job offer while working at a decent job. If you’re not ready to step away from the job offer, don’t pretend. However, if you are fortunate enough to be evaluating two job offers, take advantage of them.

#9. To Structure Your Offer, Use a Template.

Unsure of how to get the conversation started? Examine a counteroffer letter and email message that you may customize to match your needs. Just make sure your request is tailored to your specific scenario.

#10. Show Confident.

It’s just as crucial to delivering your offer with confidence as it is to express what you mean. The more self-assurance you project, the more likely the employer is to take your input seriously. Arrogance, or an inflated perception of one’s own significance, should not be mistaken for confidence, which is an appreciation of one’s own strengths and traits. Lack of confidence can also lead to over-emphasizing or getting apologetic for your request, both of which are counterproductive in an offer. Rather, declare your requested wage clearly and concisely, along with a brief statement of your reasoning.

#11. Expect Difficult Questions.

Hiring managers are used to negotiating, so they’ll be ready to ask you some tough questions to discover your motives. It’s critical not to be shaken by these queries and be truthful. You can anticipate questions like “Do you think we’re the best option? “Will you accept the employment immediately if the compensation is increased? “Do you have any other options?

#12. Ask Questions

If the individual with whom you’re negotiating appears astonished, responds adversely, or rejects your counter right away, stay confident and calm. Respond to their reaction with open-ended inquiries to learn more and continue the conversation. (This is usually possible if you have a physical meeting with the employer or hiring manager)

#10. Review Your Letter

Review your letter properly before mailing it. Have a close relative or acquaintance look at it as well.

What Should You Do After Submitting a Counteroffer Letter?

Consider and be ready to accept any minimal terms in a counteroffer—while you wait for the employer to reply to your offer. Is there a specific salary or package of benefits that you won’t compromise on? Consider how you’ll react if the counteroffer comes short of these conditions.

Expect the employer to respond in any way. He or she has the following options for responding:

  • Request a face-to-face meeting with you to discuss your pay.
  • Approve all or any of your modifications.
  • Refuse some or all offers.
  • Make a counter-proposal.

Choose whether to accept the counteroffer, submit a fresh counteroffer, or pull away if the employer refuses your offer or offers a new counteroffer. If you agree to the counteroffer, make sure to have the new offer on paper/documentation so there are no misunderstandings when you start the job.

What to Do and Not to Do in Salary Job Counter Offer

The following are the necessary things you need to have in mind as you counter offer salary for a job

What to Do

  • Look into salary estimates for the position you want.
  • You should know that more than half of employers expect to discuss salaries for entry-level positions.
  • Recognize that certain employers will provide you with the lowest salary they believe you will accept.
  • Consider your necessity for or desire for employment, market pricing, other options, and the present job market.
  • Stick to facts instead of emotions, like the value you offer.
  • If better pay isn’t a choice, be ready to ask for alternative benefits.

What not to Do (Don’t Make This Mistake)

  • When deciding on a counter offer salary amount, go with your instincts or your financial commitments.
  • Keep your range lower than what you’re ready to accept.
  • If you push too hard, they may withdraw the offer.
  • If you don’t ask, you can anticipate getting more.
  • Not having a good enough reason to counter offer.

Is It Good To Accept Counter Offer?

Your relationship with your current employer is likely to suffer if you accept a counteroffer. You just informed them you were going, and the only reason you’re staying is that they gave you more money. They can start to doubt your commitment and whether you won’t go as soon as you acquire a better offer as a result.

They can start to doubt your commitment and whether you won’t go as soon as you acquire a better offer as a result.

What Is a Counter Offer Proposal?

A counteroffer is a suggestion presented to an employer by a job applicant in response to a poor job offer. There are several ways for job seekers to present a counteroffer to an employer: Meet with the employer in person to discuss the contract. Call the employer and have a conversation.

What Are Counter Offers and Cross Offers?

Cross offers are not considered to be offers.

In a counteroffer, the initial offer is rejected and a new offer is made instead. This new offer must be accepted by the original promisor before a contract can be formed.

Is a Counter Offer a Rejection?

A counteroffer serves as both a fresh offer that materially modifies the terms of the original offer and a rejection of an offer to enter into a contract. An acceptance of a counteroffer renders the initial offer wholly worthless because it acts as a rejection. As a result, the original offer cannot be accepted.

What Happens When You Counter Offer?

An offer made in retaliation to another offer is known as a counter-offer. When an employer makes a recruitment attempt to prevent a high-performing employee from leaving, it is typically done after the individual has given their notice.

How Do Counter Offers Works?

A counter offer is one that is made in response to the initial bid in the home-buying process. A seller has three options after receiving an offer: accept, reject, or counter. Buyers may accept, reject, or counter a counteroffer made by the seller in response.

Why Is a Counter Offer Crucial?

A counter-offer can take many different forms, such as a simple pay raise, more business perks, a promotion, a new work title, greater responsibility, a position change, more engagement in projects that interest you, or any combination of these.


A counteroffer is simply for individuals who know what they are worth and what they want and go for it. This guide shows both what you are likely to encounter, which shows that confidence and courage are needed as one that might want to consider a counter offer.


Are counter offers a good idea?

Yes, they are, because a counteroffer may indicate greater pay and working arrangements.

How do you respond to a counter offer?

  • Respond politely by stating whether you accept their offer or not.
  • Eagerness to have them join the team with what you’ll be offering.
  • You can walk away if you can’t accept their offer or if they refuse your offer. (Be sure before making this decision, especially if you have a good alternative).

How does a counter offer work?

Counter offer work simply by providing your own offer to an organization where you work to consider. It can be an increase in salary based on your experience, skills, and how credible your reasons are. Then you wait for the organization or employer to respond.

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