What to Do With a Job Offer Below Your Current Salary?

Note: The original version of this article was published on https://gogpac.com/knowledge-center/job-offer-lower-than-your-current-salary in June 2024.

One of the challenges during a job hunt is determining the appropriate salary range for a position, as it plays a significant role in salary negotiations. Even if you're aware of the expected range for a job, many experts agree that there's always a possibility of receiving an offer lower than your current or desired salary .

If you’ve been through numerous interviews but haven’t yet received the offer you were hoping for, it might be time to rethink your strategy by collaborating with a recruiter . They can help clarify the salary expectations and answer any questions you may have about job openings , guiding you from application to final offer.

However, if you're confident in handling things on your own and want to be well-prepared for receiving a lowball offer, keep reading to learn how to effectively respond and elevate your negotiation skills.

Why Do Employers Make Lowball Offers?

Once you've established the salary range for a position or discussed compensation during an interview , you'll have a clearer idea of what the company might offer. Unfortunately, even if the advertised salary meets your expectations, you could still receive a lower-than-expected offer, as this is a common negotiation tactic.

A lowball offer typically involves a salary at the lower end of the employer's budget, or even below the stated range. While this may impact the company's reputation, it’s often viewed as a strategic financial decision. There are several other reasons why employers may revise the salary range for a role.

Budget adjustments

One common reason for a lower offer is budget constraints. Although this explanation is more understandable, it’s important to consider whether budget cuts are a recurring issue for the company and how transparent they are about their financial limitations.

If, along with budget concerns, you notice high employee turnover, a lack of benefits or incentives , and frequent company restructuring, the job may not be a good fit if financial stability is a priority for you.

Inconsistent job listings

The labor market typically sets the salary ranges for various positions, with high-demand roles offering higher compensation. If a company doesn't conduct a thorough compensation analysis, you might receive a low offer despite progressing far in the interview process.

This can occur when a company realizes that competitors offer similar roles for less. In such cases, you may receive an offer with a lower salary than advertised , and it’s up to you to determine whether the reduced compensation aligns with your expectations or if your experience merits a higher offer.

Changes in job Requirements

Another reason for receiving a lowball offer is that after the interview or application process, the employer modifies the job requirements . If the responsibilities have been reduced, the salary might be lowered accordingly.

For instance, the employer may no longer require you to manage a team or hold a specific certification, resulting in lower pay. Additionally, factors such as job location, work hours, job permanence, and flexibility can all influence the final offer.

Your qualifications and experience

Job postings often attract a wide range of applicants, from those highly qualified to those less so, which is why companies tend to post broad salary ranges. This allows them to adjust compensation based on a candidate's experience and qualifications.

If you meet all the qualifications for a higher-level role , you’re more likely to receive a competitive offer near the top of the range. Conversely, if your qualifications are more suited to a lower-level position, the offer may be lower, and even the job title could change.

How to respond to a lowball offer

Receiving an offer lower than what you expected can be discouraging, especially if you’ve set clear salary goals. Whether you're looking to increase your pay due to new skills or experience , it’s important to handle the situation thoughtfully.

Here’s how to approach a lowball offer strategically, without letting emotions take over .

Double-check the job posting

If you're juggling multiple job applications, there’s a chance you may have confused the salary range between positions. Additionally, the company could have updated or reposted the listing. Before addressing the offer, confirm that the lower offer is indeed inconsistent with the original posting.

Understand your market value

Rather than replying immediately, take a moment to assess your worth in the job market. Research industry standards, average salaries, and benefits for similar roles. With this information, you can craft a polite, informed response or make a strong case for renegotiation .

Ask for clarification?

Once you've expressed appreciation for the offer, ask the hiring manager to provide a breakdown of the salary components. Make sure to understand how the company arrived at the figure and whether other benefits may offset the lower base salary.

Assess whether negotiation is an option

Based on the employer's explanation, determine if you're still interested in the role and if there's room for negotiation. If the employer seems open to discussions, proceed with the conversation. However, if you're not satisfied, it's perfectly acceptable to thank them for their time and decline the offer professionally.

Highlight your value

If you’re still interested in the role, present your case for why you deserve a higher salary. Emphasize your accomplishments, experience, and how well your skills align with the company's needs. Your negotiation skills will be critical in this stage to secure a better offer.

Consider a counteroffer

The ideal outcome after negotiation is receiving a counteroffer. Even if the salary remains lower than your current pay, the employer may offer additional benefits such as extra vacation days, a flexible schedule , or opportunities for professional growth.

Ultimately, it’s up to you to decide if these perks make up for the lower salary, or if compensation remains your top priority. Remember, you’re not obligated to accept the counteroffer immediately. If the terms don’t meet your expectations, it’s okay to seek other opportunities that better align with your financial goals and career aspirations.?

Receiving a lower-than-expected offer can be disappointing, but it’s important not to take it personally. Always respond professionally and be clear about your salary expectations. Don’t hesitate to ask for what you believe you’re worth.