How to Respond to a Low Salary Offer (With Examples)

Career

You've aced the job interview, impressed the hiring managers, and finally, received that long-awaited job offer. However, excitement is tempered by disappointment when you see that the salary is lower than expected. This is a scenario many job-seekers face, especially in today's highly competitive job market. 

So, what do you do when faced with a “lowball” offer? You need to equip yourself with the knowledge and strategies to confidently navigate the negotiation process and secure a salary that reflects your value – read on for tried-and-tested tips on how to respond to a lowball salary offer. 

What is a Lowball Salary Offer?

A lowball salary offer is when the salary offered falls considerably below your expectations, undervaluing your skills and experience. Several factors can contribute to this mismatch, including:

  • Company budget: Smaller companies or start-ups might have limited budgets, impacting their salary offers.
  • Industry standard: Salaries vary across industries. A competitive offer in one field might be considered low in another.
  • Location: Geographic location significantly affects salary ranges. A city with a high cost of living will typically have higher average salaries than a rural or less-urban area.
  • Negotiation process: A miscommunication or a lack of clear understanding of your expectations can lead to a lower initial offer.

Understanding these factors can help you respond to a potential employer more strategically.

How to Respond to a Low Salary Offer

Before diving into salary negotiations, you must be well prepared to make your case and maintain a professional demeanour. Here are some do’s and don’ts:

5 Steps to Respond Effectively to a Low Salary Offer

1. Acknowledge the Offer

Always start by thanking the employer for the offer and expressing your interest in the position. It won’t hurt to show enthusiasm about joining the team. This sets a positive tone for discussions.

2. Express Your Salary Concerns

Politely say the salary is too low based on your research and qualifications.

Example: "Thank you for the offer. I'm very excited about the prospect of joining your team. However, after careful consideration and based on my research on average salaries for this position with my experience level in [location], I was expecting a salary range closer to [your desired range]."

3. Present Your Case

Highlight your skills, experience, and the value you will bring to the company. This strengthens your position during negotiations.

Example: "In my previous role at [previous company], I successfully [mention achievements] that resulted in [positive outcomes]. I'm confident I can make a significant contribution to your team in a similar way."

4. Research and Present Data

Use data to solidify your case. Research the average salary for similar positions in your industry and geographical area. Websites like Glassdoor, Payscale, and Indeed can provide useful insights.

You might say: "I did some research and found that the average salary for this role in [location] is [salary range]."

5. Open the Negotiation

Express your willingness to participate in further discussions to arrive at a mutually beneficial decision.

Example: "I'm very interested in this opportunity, and I'm confident we can find a mutually beneficial agreement. Would you be open to discussing a salary and benefits package closer to [your desired range]? "

How to Respond to Employer Pushback

Hiring managers might cite reasons such as budget constraints in response to your request to review a low salary offer. Here's how to address some common pushbacks:

1. "We have a limited budget for this position."

If the employer cannot meet your salary request, be open to negotiating other benefits like additional vacation days, bonuses, flexible working hours, or professional development opportunities. This demonstrates flexibility and a willingness to find a mutually beneficial solution.

Example response: "I understand budget limitations. However, in addition to a base salary, are there any benefits or signing bonuses we could discuss to reach a more competitive offer? "

2. "This is our starting offer for all new hires in this position."

Prepare a reasonable counter-proposal based on your research and salary expectations. Include compelling reasons for why an adjusted salary is justified.

Example response: "I appreciate that information. Based on my qualifications and experience, I believe I can make a significant contribution beyond the typical new hire for this role. Would you be willing to reconsider based on my specific experience and skill set? "

3. “We can’t meet your salary expectations now, but you can expect future raises.” 

Example Response: "I appreciate the offer of raises in the future. However, I believe a starting salary of [desired amount] would better reflect my current value and contributions. Could we explore an initial adjustment with performance-based raises later? "

Walking Away From the Job Offer (if necessary)

If the offer remains unsatisfactory and the company cannot meet your expectations, it may be best to walk away. Declining politely leaves the door open for future opportunities, so be sure to maintain professionalism.

If you are replying with your decision via email, it could sound something like this:

"Thank you again for the offer. After careful consideration, I regret to inform you that I cannot accept the position due to the salary being lower than my current expectations. I wish you the best in your search for a suitable candidate, and  I hope we can stay in touch for future opportunities.”

What’s Next After Getting a Low Salary Offer?

Receiving a low salary offer can be disheartening, but it is crucial to remain professional and strategic. Follow the steps outlined above to either negotiate a better salary or decide if walking away from the offer is the best choice.

Remember: your goal is to find a position that values your skills and meets your financial needs. Don't be afraid to advocate for yourself, and learn how to negotiate for a higher salary. By approaching the situation calmly, confidently, and strategically, you can turn a lowball salary offer into an opportunity for a better deal or make an informed decision to seek other opportunities. Always remember your worth, and don't settle for less than you deserve.

Want to minimise the chances of getting a low salary offer from the start? Check out our 7 top tips on salary negotiations.