How to decline a job offer due to salary

What should you do if you are offered a job you really want but the starting salary is too low to accept? Obviously, the next step is to negotiate a higher salary, but sometimes the company is unable to offer the salary you would need in order to accept the position. Declining a job offer you want due to salary is disappointing. Still, it’s important to decline gracefully without burning bridges, especially when all other aspects of the offer appeal to you. Here’s how to decline a job offer due to salary.

Why should you mention salary when you decline a job offer?

You could just decline the position without giving a reason. You’d simply say, “Thank you so much for the opportunity. Unfortunately, I’m not able to accept the position. I really enjoyed meeting you. Thanks again for your time!”

Declining without specifying a reason is fine, but our advice is to be specific. If salary is truly the only reason you aren’t accepting the offer, it’s worth it to say so. Let’s say the starting salary is lower than the market rate for that position and industry. When you decline a job offer and name the low salary as the reason, this can let the company know that they might need to reevaluate their data and increase their budget for the open position, especially if multiple candidates decline the offer for the same reason.

Mentioning salary can also help keep your connections intact. If all other aspects of the offer and the role are a good fit for you, making it clear that you’re only declining the offer because of the salary can help keep communication open in the future.

How to decline a job offer due to salary

It’s time to talk about how to decline the job offer. Remember, for the purpose of this article, we assume you have tried negotiating in good faith and haven’t been able to reach an agreement.

Some people ask whether they should decline the job via email, over the phone, or in person. In general, it’s fine to decline a job offer via email, especially if you’ve been using email to communicate throughout negotiations. The only exception is if you already have a phone call or meeting set to discuss the offer one last time. If that’s the case, you’ll need to use that time to decline the job offer.

Here are three tips for declining a job offer due to salary:

  1. Be direct and polite. You are setting the tone for your ongoing relationship with the people at this company. How do you want to be remembered? It can be frustrating and disappointing to learn you won’t be able to negotiate an acceptable salary, but you want to be careful to keep that frustration from coming through when you turn down the offer. One way to do this is by highlighting why you wish you could accept the job.
  2. Be specific. Salary is the only reason you are declining, so be clear about that. You can say this gracefully, but it’s important to be honest and direct about the real reason.
  3. End on an optimistic note. You’ve made it clear that you wish you could accept the offer and that you really appreciate the opportunity. Now you can say honestly that you hope they keep you in mind in the future should another position open up that is within your salary range.

How might these tips look in practice? Here’s a sample email we’ve put together to help guide you as you form your thoughts.

Dear [Hiring Manager],

I’d like to thank you again for the offer. I love the work you’re doing, especially [fill in specifics about what attracted you to the role/company].

Unfortunately, I cannot accept the position at this time. As we’ve discussed, I would need a starting salary of $X to be able to make the move to [Company]. I understand that salary isn’t possible right now, and I know we’re both disappointed it didn’t work out this time.

Thank you for taking the time to meet with me and answer all my questions. I enjoyed getting to know you and would love to stay in touch. Please feel free to add me on [social platforms]. And in the future, if a role opens within my range, I hope you will reach out.

Best of luck,

[Your name]

 

Remember, declining a job offer due to salary doesn’t mean you’ll never work with this company — it just means not right now. Keep an eye on other job openings at the organization, and who knows? Maybe a better fit will pop up in the future.

In the meantime, update your profile with Payscale’s Salary Survey to be sure you’re staying on top of salary trends. Best of luck!