I recently interviewed for a different department at work. The job would be more specialized than what I'm doing now. They called today and said they want to offer me the job, but they can't give me the pay I am making now, it would be $2 less/hr. The hours are less desirable than I am working now (I'm basically being treated as a new employee, but have almost 2 years experience).

So, long story short, I think I want to turn them down. In my current position, I will still work with these people. Many people in that department knew I was interviewing and were telling me how excited they were to work with me more.

So how do I tell not only the hiring manager, but the co-workers I am turning down the job offer? The hiring manger knows the $ was a big factor for me (I mentioned it in the interview), but how do I tell the other co-workers who I will still see and work with occasionally? I'd also like to keep the door open if they can hire me later at more $.

Have you had to turn down a job? How did you do it?