4 Templates for Responding to a Candidate's Counteroffer

A counteroffer be a tricky situation for employers, who want to keep the candidate happy but also don't want to overspend. Use these templates to respond to a counteroffer in a way that works for your organization.

Letter and Email Templates

Download Template

Download "iHire Counteroffer Response Templates.pdf"

You've sent a job offer to a desirable candidate, but instead of receiving an acceptance email, you're met with a counteroffer. This scenario is all too common in the recruitment process, especially in fields where the labor supply is tight, or other hiring trends are at play.

Writing job offer negotiation emails can feel awkward, especially if you want to maintain the candidate's interest. Read on to learn the best ways to respond to a counteroffer.

Four Ways to Respond to a Counteroffer Depending on the Situation

How you should respond to a counteroffer depends on the offer, your organization's limitations, and how immediately you need to hire the candidate. Rejecting a counteroffer is an unfortunate part of the hiring process, but not having the budget to offer a higher salary doesn't always mean the negotiations are over.

Below are some of the best counteroffer templates for responding to candidates. Even if you don't use them word for word, they may be ideal jumping-off points for your email response.

Woman writing counteroffer email

1. Accepting the Counteroffer

In many circumstances, you may be perfectly able to accept the candidate's counteroffer, especially if their demands are manageable. Acceptance emails should include confirmation that the offer is accepted, details about the offer and position, a request for the candidate to confirm acceptance, and a welcoming and professional tone.

Use this sample template for accepting a counteroffer:

Dear [name],

Thank you for your continued interest in our [job title] position. We have reviewed your counteroffer and are happy to accept it, including meeting your salary expectations of [requested amount]. [Include any other offer-specific details, like benefits and PTO].

We are excited that you have decided to join [name of employer]. We believe you will be an invaluable addition to our team and can't wait for you to get started. Please confirm that you accept this job offer by responding to this email so we can begin the next steps in finalizing your employment.

We look forward to working with you and welcoming you to our team.

Best,

[name, company name, contact information]

2. Can't Match the Counteroffer and Need to Negotiate It Down

If you're unable to match the counteroffer, that doesn't have to mean salary negotiations are over. When responding to a counteroffer with an additional counteroffer, be as specific as possible as to why you cannot accept the previous offer, whether it's due to budget restraints or company policies. Be appreciative and courteous of their time in your email to maintain their respect and interest.

Use this sample template for when you can't match the counteroffer and want to negotiate it down:

Dear [name],

Thank you for your continued interest in our [job title] position. After careful consideration, we have reviewed your counteroffer and are unable to accept your requested salary at this time.

Instead, we would like to counteroffer a salary of [new amount]. [Include any other offer-specific details, including benefits and PTO]. This is the highest salary and benefits package we can offer under our organization's policies and budget limitations.

We sincerely appreciate your continued interest and the time you have put into negotiating with us. Please let us know your response to this offer by [deadline] and contact us if you have any concerns or questions. We look forward to hearing from you.

Best,

[name, company name, contact information]

3. Can't Budge on Salary, But You Have Alternative Offers

In other situations, your hands are tied monetarily, but you have more to offer candidates, such as better benefits, PTO, or days working from home for hybrid positions. While salary is undoubtedly the most significant focus for many applicants, offering them more time to be with their family may make the job more desirable.

Use this sample template for when you can't budge on the salary but have alternatives that you can offer:

Dear [name],

Thank you for your continued interest in our [job title] position. After careful consideration, we have reviewed your counteroffer and are unable to accept your requested salary at this time.

Instead, we would like to offer [increased benefits, PTO, or other alternative] in addition to the salary of [original amount]. We hope that this [summarize alternative] will make up for the difference in salary. We understand this isn't the offer you were hoping for, but we believe it demonstrates our willingness to arrive at a mutually beneficial solution that meets our company's capabilities and your value as a candidate.

Best,

[name, company name, contact information]

Create Your Account Today

4. Rejecting the Counteroffer

When your organization can't accept the candidate's counteroffer or doesn't believe the candidate or position is worth it, it's time for a rejection email. How you respond should be professional, concise, and friendly enough to keep the candidate interested in future positions.

Use this sample template for rejecting a counteroffer:

Dear [name],

Thank you for your interest in our [job title] position. After careful consideration, we have reviewed your counteroffer and regret to inform you that we are unable to accept your requested salary at this time.

We appreciate the time and effort you put into meeting with us. Please understand that this decision was not made lightly, as we value your skills and experience. Please let us know if you have any concerns or questions regarding this decision, and we hope you consider applying for open positions at [name of employer] again.

We wish you the best in your job search and hope you find the right opportunity for your career and aspirations.

Best,

[name, company name, contact information]

Resources for Responding to Counteroffers

How you respond to job candidates impacts how your organization is perceived and the likelihood of them being willing to work for you. At iHire, we can help you grab and keep the attention of career-minded candidates at every step of the hiring process. Visit the letter and email templates section of our Resource Center for help crafting the perfect emails for candidates.

By iHire | Originally Published: April 11, 2024