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Why are you analyzing this to death? If you don't want to accept the offer don't accept it. Simply write a letter and, "tell the company that I do not want to take the offer but I am very grateful for the interview and time spent". There's no point bringing up the pay scale when by your own admission, "This is not my dream job nor is it my dream company.. In fact this job may be way harder and longer hours ...".
I have a job offer on the table but theres no way in heck that I will leave my current company for such a small increase. This whole thing has put a bad taste in my mouth, anyways how do I tell the company that I do not want to take the offer but I am very grateful for the interview and time spent??
I want to leave the door open for the future but I just do not feel comfortable moving at such a low increase in salary...
You tell them the same thing you wrote in your post.
"While your offer is very generous, unfortunately it just not a good fit at the moment. However, I would like to stay in touch with you for future possibilities."
If employers asks what is not a good fit, tell them politely that you thought hard about it but the numbers just didn't add up.
Thank them again for their offer and then move on.
The accepted method is to make a counter-offer. This way the hiring company knows that you have an earnest interest in working for them.
If you cannot get more than a modest increase in pay then be sure to examine other methods that might improve your work life. More vacation than you currently have, or less hours, or the ability to telecommute
"While your offer is very generous, unfortunately it just not a good fit at the moment. However, I would like to stay in touch with you for future possibilities."
If employers asks what is not a good fit, tell them politely that you thought hard about it but the numbers just didn't add up.
Thank them again for their offer and then move on.
Why would he write this if the numbers don't add up and he will probably get more of an increase in his next raise at his current company? I'm sure the company is fully aware that their offer of just a tiny bit more than his current salary is NOT generous by any means and if he writes this, they will dismiss him as a BS artist. He doesn't have to butter them up. Actually I am even wondering why he wants to leave the door open when he says it's not his dream job or company anyway.
Counter. Anything else is burning the bridge. They won't come back to you again if they invested enough time and effort to get to the point of offering you the job if you just turn it down at this point, no matter how polite you are about it.
If a 20% raise makes it worth your while, tell them this is what you need to make it a viable move.
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