Some companies can offer employees plenty of scopes to work but might not offer them competitive salaries for various reasons.
The company might be a start-up, just taking off. Or it might be going through a slump, and they are not making enough profits to raise the salary of their employees.
Whatever the reason, if an employee does not feel adequately compensated for the time and effort they put in, they can lose interest in working for the company for an extended period.
They will soon start looking for another job as motivation and passion can only take them so far.
Hence, one needs to negotiate for a higher salary if they feel the salary and other benefits offered by the company are insufficient.
And in extreme cases, an employee might even have to refuse a job offer if the employers remain adamant and refuse to raise the salary more than they are offering.
However, there is a way to politely decline the job offer when the salary is low.
After all, no one has seen the future, and the company you are turning down now might take off after a few years and could be in a position to offer competitive packages.
You do not want to miss out on that, and it is always a good idea to leave the door ajar rather than shutting it completely while declining a job offer.
When And How To Decline a Job Offer Due to Salary?
There might be several reasons you have to decline a job offer because of a low salary. While one of the primary reasons is that the salary does not meet your expectations, several other practical reasons also exist. Here are some of them.
1. Not Enough for the Position
The most important reason you might have to refuse a job offer due to a low salary is that the salary is not enough for the time and effort you would be putting in.
Your job role might require a certain number of hours and a certain degree of effort, and your employer might just be covering the basic minimum. This is often not enough.
Since many employers rarely disclose the salary until the last leg of the hiring process, it becomes impossible to tell how much they will finally offer.
So it can be quite disappointing when, after a rigorous hiring process, you finally make it to the end of the interview, and they also offer you the job, but instead of happily accepting it, you have to decline it because of the dismal amount.
Also Read:- Can You Lose a Job Offer By Negotiating Salary? Ace Negotiations With These Tips!
2. Not Covering Your Expenses
Where you will have to move to another city to accept the job offer, your salary must cover all your living expenses.
However, although your company might offer enough to cover the basic expenses, it might not be enough. Or, you could be barely left with any savings and end up living from payday to payday.
You need to have some extra money to fall back on during times of crisis after meeting your daily expenses, so when that does not happen, there is no other way apart from declining the job offer.
3. You Have Better Offers
When applicants seek a job, they apply to multiple organizations. It can very well happen that soon after receiving a job offer, you are offered another job with a better salary. In that case, you have to decline the previous low-paying job.
However, you should do so politely and never brag about the other high-paying job that you have been offered.
You can also negotiate with the recruiters to raise your salary to be on par with the other company and use it as leverage. If the company wants to hire you, they might give in and agree to the figure.
4. Low Average Pay
The figure that a company might offer you might not be too negligible. Even after meeting all your expenses, you might still be saving a considerable amount. And yet, the amount is probably still lower than the average pay for that position.
If you conduct market research, you might find that your colleagues working in the same position in other organizations are drawing a higher figure than you.
Now, if you still agree to work for low pay, you will be working at a disadvantage. You might come across as an employee unaware of their self-worth and what you deserve for yourself.
Moreover, when you think of asking for a raise, whatever hike you are offered will be in keeping with your present salary, and you will still be behind in the market value. You will take a long time to catch up and get paid according to industry standards.
Ways to Decline a Job Offer Politely when You are Offered a Low Salary
When you see the figure, m your prospective employers are offering you, do not make a hasty decision and send a curt “No.” Here is how you can decline a job offer politely.
1. Analyze the Offer
Before declining the job offer, try to evaluate all the aspects of the job. A good analysis will give you time to think, and you can plan a better reply with adequate reasons.
Look at the pros and cons of accepting the job and evaluate the perks and benefits the company is offering alongside. The salary might be low, but are they willing to bear all your travel expenses? Or do they have excellent health insurance schemes for their employees?
Or, maybe the company has an excellent work environment, and you would prefer working with a healthy and happy state of mind rather than simply slogging and stressing about your work.
Take all these factors into consideration before you decline.
2. Research and Negotiate
Once you research the market and figure out the average salary for the position, you might find that it is falling short of the usual figure offered for similar roles.
Instead of declining the offer outright, you could consider negotiating.
You could discuss factors like your job experience and certifications to raise the figure. If you have no work experience, you deserve to be paid according to industry standards and the average salary that novices are paid across the industry.
Researching the market will give you a good idea of what you should expect, and never settle for less than you deserve.
Also Read:- 5 Professional Ways of Negotiating Start Day at Your New Job
3. Declining the Offer
Even after negotiating with your prospective employers, if they refuse to raise the salary any further, you would finally have no option but to decline the offer.
However, be sure to be thankful for offering the job to you in the first place. You could then explain why you are making the decision and how the low salary can affect your personal life and career.
However, keep the details to a minimum and be professional and courteous throughout.
And always be sure to mention that you would be interested in working for the company in the future if another suitable role opens up and the remuneration is more fitting.
This will create a possibility for returning to the company when they have turned things around and are in a better position to make a higher offer.
Examples Showing How to Decline a Job Offer Due to Low Salary Politely
Here are some sample responses to help you decline a job offer due to a low salary. You can, of course, personalize them depending on the job role you have been offered.
1. Declining the Offer in Person
You may want to talk to your employer in person and discuss the matter once more before finally declining the offer.
A situation like this can also arise when you are made a spot offer at the end of the interview, and you are okay with the figure they are offering. In such cases, your response can be as follows:
“Thank you for offering me the position. But considering the job role you just stated and the responsibilities I would have to undertake, your offer is inadequate.
If you are willing to negotiate the figure and consider a higher bracket, please let me know, as I am interested in working for your company.”
When your employer still refuses, you can respond by saying:
“Thank you for the offer. However, considering all the aspects, I will not be able to accept them. However, I would love to return if you have other positions to offer in the future.”
2. Declining the Offer Over the Phone
Since your hiring managers will not be able to see you when you speak over the phone, you have to ensure that you do not sound rude. Try to work on your voice modulation to sound polite and courteous. Here is what you can say:
“Thank you for making me the offer. I would love to take up the position as well. However, the salary you offer is lower than what other organizations offer for similar positions.
I have heard a lot about your company and its excellent work culture, which is why I am very interested in working for your organization. I will gladly accept the offer if you are willing to negotiate the amount and offer pay in keeping with the industry standards.”
If the recruiter refuses, then you can say:
“I am sorry to hear that. I was looking forward to working with you. If a suitable position opens up again, I would love to reapply. However, I will not be able to accept the offer this time. Thank you again.”
3. Declining the Offer Over Email
You can decline the job offer over email, as that would be a convenient thing to do. You will also have a conversation record for future reference in case the need arises. You can send an email as follows:
Respected Sir,Thank you for offering me the position of Senior Data Analyst at (name of the company). I was looking forward to working with you.
However, I must say that I have to decline the offer. The salary you are offering, along with the perks and benefits, are not what I expected, given the current industry standards.
If you consider bringing up the salary and offer an amount at par with the other organizations, I would be glad to take up the offer. Otherwise, I would have to decline politely.
Do let me know if you reconsider or if you have better roles in the future where I can fit them. I would be glad to reapply as I like your work environment and would love to work for the company someday.
Declining a job offer is not easy, especially when you do not have any other offer. Sometimes, employees accept jobs for lower salaries because they badly need a source of income, but that puts them in a loop for low-paying jobs.
Subsequent employers often refuse to raise the figure because they assume that since the employee has settled for less once, they will settle for less again.
Hence, a time comes when you have to be strong enough to break the cycle. Try to secure your finances as much as possible so you can refuse a low-paying job and push for what you deserve.