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A compensation proposal is a letter addressed to an employer seeking a new or improved rate of pay. As part of the process of salary negotiation, a compensation proposal usually comes when a new employee is hired, but may be presented after a promotion or following an especially long period without a raise. Writing a compensation proposal is a delicate business in that the employee does not want to offend the employer, while the employer wants to retain the employee without giving away too much. These steps will teach you how to write a compensation proposal that will have the highest chance of winning you your desired salary.



  1. 1
    Collect and review all information regarding past compensation and salary negotiation.
    • If you are a new hire, this includes all references to compensation made in the interview process, as well as your compensation packages in previous positions. If you are a current employee, this will be records of your current salary as well as any policies, promises, or comments regarding compensation.
  2. 2
    Do research into typical compensation in your field and find out average salaries, typical benefits packages, and the usual rate and timing of raises.
  3. 3
    Decide what you can reasonably demand of your employer.
  4. 4
    Begin the proposal by cordially addressing your employer and stating the purpose of your communication, referencing any past references to salary negotiation as necessary.
    • If you are seeking an increased salary, choose a figure that is slightly higher than what you want but that is still within the parameters of what your employer might spend. If you are seeking benefits, start with more than you think you deserve so as to negotiate down to what you expect to get.
    • If you are a new hire, remind the employer of your experience and skills. If you are a current employee, reference the work you have done and the time you have committed.
  5. 5
    Explain why you deserve a certain compensation package or a higher salary before listing any figures.
  6. 6
    State your boldest request first.
    • If this is a salary proposal, give your figure. If this is a benefits request, start with health benefits or whatever is most expensive.
  7. 7
    Continue by listing other aspects of your proposal, including other benefits, relocation allowances, vacation time, etc.
  8. 8
    Present the research you have done regarding compensation in your field, including average salaries, benefits, etc.
  9. 9
    Indicate that you are willing to negotiate the terms of your proposal, and suggest a time to discuss the matter or request a written response.
  10. 10
    Close by thanking your employer and reiterating your commitment to your job and your desire to continue there.

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  • If you are in a position where you think you deserve greater compensation but an employer has already firmly stated what they are offering in terms of salary or benefits, think of other ways in which you can be reimbursed: relocation allowances, extra time off, greater retirement benefits, financial help with educational costs, etc.


  • Writing a compensation proposal is an alternative to in-person salary negotiations and should only be done when an employer indicates that he or she is open to such a proposal. Do not send a compensation or salary proposal out of the blue or without having been previously requested to do so.

Things You'll Need

  • Research covering compensation and benefits packages in your field

Article Info

Categories: Work World

In other languages:

Español: escribir una proposición de compensación

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