After clearing every hurdle in the long and winding path to your new job, you’ve just gotten the word: they’re making you an offer. What if the offer is lower than the salary range you expected?
You’ve been lowballed, my friend.
You’re probably shocked and disappointed, wondering if the whole process was just a waste of your time. It wasn’t. All is not lost.
Good employers sometimes make wrongheadedly low offers (even to perfect-fit candidates). If you take specific steps and avoid a few common mistakes, you have a good chance of bumping that offer up into a range that reflects the market value of the job and the value you bring to it.
Let’s start with those two common mistakes and how to avoid them.
Don’t take it personally.
You might feel insulted. But (assuming you did your homework on this employer and found that they’re an above-board, respected organization) keep this in mind: a respectable employer doesn’t go through the grueling recruiting and interviewing process only to knowingly offend their top candidate.
So, why do employers do this? Here are a few reasons I’ve seen: Sometimes, an organization has everything to offer (growth opportunities, exposure to senior leadership, a reputation that will shine on your resume) – except cash. Conversely, they may be able to afford you – but they’re working with old data (which happens more often than you might think). Or, as often happens, they could have made an error when researching and analyzing the salary comps for the role. Whatever the reasons, getting lowballed is like getting the rug pulled out from under you, provoking all kinds of emotional reactions.
Set the emotional stuff aside for now. It will cloud your judgment when you need to think clearly and analytically.
Right now, you need the time to gather your thoughts, make solid decisions, and craft a pitch-perfect response. Your best first response is one that showcases your composure and grace in moments of surprise or disappointment. It is not the time to create the impression that you’re difficult or demanding.
File this rule away for next time: go into every offer conversation prepared for a surprise. When you’re ready with a short, polite, time-buying response, you’re far less likely to let any negativity leak into your answer. Neutral responses are almost always best (see my one exception below). Think about it: even if the offer sounds perfect, you’re being asked to make a big decision and deserve the time to take it all in first. You may discover a few flaws after examining them more closely, allowing you to negotiate them before saying yes. So stay professional and upbeat but neutral. For a lowball, keep it very short. “Thank you for your offer. I want to take some time to go through everything. Would it be alright for me to get back to you tomorrow?”
In that moment, you’re not rejecting. You’re not negotiating anything. You’re merely signaling that you’re still engaged in the process, but you’re going to go silent for a few hours or a day. And for many people, silence is uncomfortable. Be ready for that. The employer may immediately ask you why you need time. They may ask if you’re unhappy with the offer. It’s an understandable human reaction. But do not take the bait! The conversation will invariably turn tense, undermining your negotiating power. If questioned, hold your ground while neutralizing the emotional part. “I have a rule for myself whenever I make a big decision. I always step back to consider all variables first. So I’d be much more comfortable catching up with you tomorrow if that’s alright. I’m looking forward to connecting then.”
The only (rare) exception to that rule is if, in fact, you previously shared precisely what you needed in an offer (including salary, incentive comp, benefits coverage, perks, everything), and the employer delivers it all to you on a silver platter.
Now that you’ve hung up the phone, vented to your best friend and taken your ten deep breaths, take a closer look at the total offer. How far apart are you on salary? Do any other compensation components fill that gap? Equity in the company or stock options carries a potential future value that could exceed your original desired salary range. What about other benefits? Be sure you understand the breadth and value of health care and other benefits and perks.
Finally, is there other long-term value that comes with the job or employer, creating an easier path to substantially higher income in the future? Having your own answers to these questions will help shape your counteroffer.
So far, we’ve been discussing how the offer measures up to the expectations and beliefs you brought into the situation. But maybe the offer aligns with the current market, and your expectations were a little out of whack. It happens. You can’t know what’s realistic without solid data. Research the role by job title. But don’t stop there. Companies may title similar jobs differently, so research them by core responsibility. Use multiple resources, including any connections you have with people within the organization and other similar companies. Download the SkyWater salary guide for your specialized field to research salary ranges for your role in the Minneapolis area.
Be sure to copy and organize everything you find and how that information relates to your compensation requirements. The more facts and details you have, the better equipped you are to articulate a convincing counteroffer.
How flexible can you be? At the end of the day, you must know two things:
Your own financial needs and beliefs drive the first. Your research must drive the second and fall within a realistic salary range. This is your range. If your range is more than 20% higher than the offer you received, you may need to get creative with other compensation or perks to close the gap. Consider asking for a signing bonus. While it won’t improve your salary, it can significantly boost your current finances. Extra vacation days, access to a company vehicle, or flexible working hours might also soften the blow of a lower salary. If nothing closes the gap, consider asking for a 3-month or 6-month salary review tied to specific performance parameters.
At the end of the day, if you believe in the company, want to be a part of it, and can financially live with the lower salary now, the gap between need and offer may not be as terrible as it first appeared. Similarly, the offer may work if the salary is probationary, with short-term, clearly defined success goals and commensurate salary increases.
Whether you’re doing this over the phone or via email, your counter should include four very specific components:
Use our email template to respond to a lowball salary offer.
If you need this job – if your family or other life circumstances demand that you take this job, even at the lowball salary they’ve offered, then go for it. Use it to get back on your feet, do yourself proud at this job, and keep your eyes and options open for the next great opportunity.
Download the most recent salary guide for your specialized field.