How to Negotiate an Offer Letter

An offer letter outlines the company’s desire to hire a particular candidate for a basic salary and other job related benefits. The letter is open to negotiation where a candidate can make a counter offer, if he or she is not satisfied with the terms of employment.


  • 1

    Review the offer letter

    The candidate’s first task will be to review the offer letter. Your basic salary must not be the stumbling block, given that the package will include essential add-ons, such as insurance policies, bonuses, perks, sick leaves, retirement benefits etc. Analyze each component carefully and assign your own value to it before concluding whether the offer is unacceptable.

  • 2


    Pick out the components of the offer letter that you want to negotiate about. If the basic salary is not up to your expectations, it is important that you back it up with proof. Research the web or ask around for salary profiles which match your experience. For instance, if you have 5 years of relevant job experience, then search the amount of salary appraisal associated with your field. If you were provided a laptop and cell phone by your previous employers, or a certain percentage in earned leaves, which are not guaranteed by the company in review, make note of that. You will need to make fair adjustments which are based on facts and industry averages rather than being biased in your self-estimation.

  • 3

    Prepare a Counter proposal

    Begin the counter proposal by appreciating the company’s offer, further explaining that you have read and understood it completely. Now start listing the areas of the contract which need adjustments. Explain briefly, with evidence, why you think the offer should be reconsidered. If the salary is the main point, present your experience and compare it with the industry. The approach must be direct, yet pleasant, which shows the employer that you are serious. Moreover, highlight the areas which you agree with and back it up if possible. This will provide added verification of your merit.

    End the letter with a complimentary close. Leave your contact information as well.

  • 4


    Wait for the company's response. If they accept the offer, you are good to start your new job. If they are not convinced with your counter offer, they may call you for a meeting. In most cases, the company will always make an offer halfway between their original and the one you submitted. Depending on your needs, take or refuse the offer and move ahead.

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