What to Do When a Job Offer Is Lower Than Your Current Salary

Woman researching her salary

It often feels like a new opportunity to meet your career goals, make new connections, and earn more money. But in some cases, your job offer doesn't automatically come with more money. Many women get a job offer that is lower than what they've asked for, or worse, lower than their current salary.

Although you can always decline an offer that is too low, you can also negotiate if you’re not ready to walk away—particularly if you’re in a situation where it can make “strategic sense,” says career coach and salary negotiation strategist Claudia Miller. Miller has more than 10 years of experience as a professional career coach and has helped clients maximize their compensation and effectively communicate their value.

Even if you’ve negotiated a job offer before, you should know what your options are if you get a job offer that is lower than your current salary. So read this before you negotiate or reply to that job offer email.

What to expect during the job offer process

Once you complete the interview process—which often includes up to three rounds of virtual or in-person interviews—and the employer completes any background and reference checks that are needed, you will get the offer. Job offers can include any combination of base salary, bonuses, healthcare and wellness benefits, paid leave, and other perks.

An offer that is “too low” could mean that it doesn’t include the salary you need to meet your needs or is lower than what you are making in your current job. You should always wait for a written offer before making a decision. Once you have the written offer, you can accept, decline, or negotiate it. According to Miller, you should negotiate. “It sets you as a top performer,” she says. “How you negotiate early on influences how you are perceived. By negotiating firmly and strategically, you demonstrate confidence and the ability to advocate for yourself.”

Negotiation doesn’t just set the tone for what you’re like as a candidate but as an employee too. “I’ve heard from some hiring managers how they were puzzled that the candidate didn’t negotiate their salary and now they’re questioning how good they are at their jobs. When you negotiate and advocate for yourself correctly, you also demonstrate to your organization you can negotiate on behalf of the company.”

Ideally, the employer will accept your negotiation and adjust the offer accordingly so that you can start preparing for your new job. But that is not always the case. The job offer process is much too nuanced for a “one size fits all” approach, so you should be ready to assess your unique situation and then decide the best next step.

When a job offer is lower than your current salary: 3 common scenarios and how to manage them

Scenario 1: The job offer is too low, but you have wiggle room

Whether you are pursuing an internal promotion or an external opportunity, you should review your job offer in detail before accepting. If you find that the proposed salary is lower than your current one, you need to decide if the opportunity is lucrative enough to justify the pay cut. According to Miller, taking a salary that is lower than your current one can negatively impact your earning power in the future. “Negotiating offers sets the stage for future salary increases. Throughout your life, the earnings start compounding.” This means that taking a lower salary now could result in lower earnings over the life of your career, which can be difficult to recover from.

However, there are some cases in which accepting a lower salary than your current one might make sense. “Sometimes—not all the time—when you switch fields, you need to take a step back in order to move forward. Taking a lower salary enables you to get your foot in the door, gain requisite experience, and rebuild salary over time,” Miller asserts. Similarly, when re-entering the workforce, you may consider taking a pay cut. “If you’ve been out of the workforce for an extended time and you haven't been upskilling, targeting a lower salary range can help you transition back into a new role that will ultimately get your career back on track.”

Miller shares that transitioning to a role with a greater work-life balance or relocating to a new area may also be grounds for accepting a lower salary. If these situations do not apply to you, consider inquiring about the salary:

“Thank you for reaching out with this offer for the Health Informatics Specialist role. Before moving forward, I would like to better understand the factors that went into determining this salary. My research shows that the standard salary for this position is between $80,000 and $90,000. Can you please share why the pay you offered is lower?”

You should only ask this question if having the additional insight will help you make a decision. If not, you should go straight into accepting, declining due to salary, or negotiating the job offer.

Scenario 2: The salary is low, but you’re open to negotiating something other than salary

According to Monster’s worker poll, equal pay is at the top of the list for women in the workforce, but career growth and mentorship aren't far behind. If you want to negotiate one of these benefits, consider a response like this:

“I appreciate the offer you’ve presented. This role is a natural next step in my career and I’m prepared to give 100% to this job. In exchange for that, I would like to adjust my compensation package to include an annual professional development stipend that I can use to fund career growth and mentorship opportunities.”

Here are some other benefits you can negotiate:

Scenario 3: Taking a lower salary is not an option

Between a persistent gender pay gap in the U.S. workforce and rising costs due to inflation, many women cannot afford—or simply choose not to—accept a salary that is lower than their current one. Still, you may be concerned that the employer will rescind the offer if you attempt to negotiate. Miller says you shouldn’t worry. “You have nothing to lose,” she says. “Reputable companies won't rescind an offer if you try to negotiate respectfully. The only risk is hearing ‘no’. But often, a creative counteroffer can find a middle ground.”

To negotiate in this scenario, thank the employer for the offer, then briefly share the specific salary range you want:

“Thank you for extending this offer. I am excited about the opportunity and glad to see things moving forward. With my extensive background in healthtech and data science, I am confident that the value I can bring to this role is on par with a salary between $85,000 and $90,000. This range also reflects the market rate for similar positions. Is your team prepared to offer a salary within this range?”

If the employer is not willing to budge, you may need to walk away and continue your job search, targeting companies with a track record for salary satisfaction.

How to negotiate a job offer effectively

Even in unique scenarios, you can incorporate best practices into your negotiation strategy to get the outcome you want.

Practice in advance

You can start practicing your responses to multiple scenarios as soon as you start interviewing with the company. As you advance through multiple rounds, gather additional information about the job that you can use during your negotiation. Continue practicing until you feel comfortable having the conversation with whoever has made the offer, such as a hiring manager or HR manager. “You want to exude confidence, talk firmly, and show that you know what you’re doing. To achieve this, you need to practice. It rarely comes naturally,” advises Miller.

Choose the right time

You have the right to request at least two to three business days to review a formal offer. “Immediately ask about their benefits package and if they can email it to you while you review the total compensation package, “says Miller. From there, review the offer in detail, then set a specific time to negotiate with them by phone, video call, or in person.

Don’t use your current salary as the baseline

Use your current salary for guidance, but don’t base your desired salary on it or your salary history. Miller says you should be researching salary ranges based on job title, location, and other factors. “Do not base your next salary on how much you’re currently making, especially if you’re a woman or a person of color. Data shows you’re already grossly underpaid, so if you base your next salary on your current one, you’ll never attain fair compensation.” In 2022, the Center for American Progress reported that Black and Hispanic women faced the largest wage gaps, even though the gap narrowed for other groups that year.

Before you can help close this gap, you have to know what you’re asking for. In addition to using reputable resources like Glassdoor and Payscale to research fair pay, Miller suggests contacting hiring managers for their insights. “Ask them what an average salary range is for the title you’re interested in and what makes them offer the higher end of the salary range. You can say, ‘What is a typical compensation package range for this role?’ Then ask, ‘What makes you offer the top range of the salary?’ You want to know what skills or achievements will warrant the top range of the salary.”