When to use this template
Use this when a candidate's compensation expectations are materially above the role's band and you've confirmed the band isn't going to move. This happens most often after a recruiter phone screen where compensation is discussed.
The cleanest version of this rejection is transparent: share your band, acknowledge the gap, and close the loop quickly. Candidates who found out they'd been walked through three rounds only to hit a pay mismatch at the end are among the loudest unhappy candidates you'll create.
If your role has any flexibility — equity, signing bonus, variable — mention it before closing. If there's no flexibility, say so.
Considerations
- Share your band if you haven't already. If you can't, explain why.
- Don't promise future conversations unless you plan to have them.
- Never negotiate publicly. If you want to stretch the offer, do it in a follow-up.
- Check that the band itself is defensible — market data is cheap and candidates have access to it.
The email template
Copy the version below and replace the {{placeholders}} with your specifics — or use the generator to fill everything in at once.
Following up on our call about {{role}}
Hi {{candidate_name}},
Thanks for the conversation about the {{role}} role at {{company}}, and for being upfront about your compensation expectations.
After checking with the team, the band for this role is set and it sits below the number you mentioned. Rather than run a process that's unlikely to work for either of us, I wanted to close the loop here honestly.
If your situation changes or you're open to exploring other roles at {{company}}, I'd love to stay in touch.
Best,
{{your_name}}How to personalize
Replace these placeholders before sending:
- {{candidate_name}}
- {{role}}
- {{company}}
- {{hiring_manager}}
- {{your_name}}
For any rejection that follows a live conversation, add one specific detail from that conversation — a project they mentioned, a question they asked, something they built. One concrete reference turns a form letter into a message the candidate will remember.