Leveraging Offers from other companies for wage raise

[Slevin]

Hey guys, I'm somewhat new to the working world, so I wanted some professional advice while I'm in the accumulation phase.

I have a pay and performace review coming up with the current company I work at. As far as I know, they consider me to be a very good employee (give me awards etc fairly often). Earlier this week, I was invited to a hiring fair at a competitor's company, and decided to go to see how honed my interviewing skills were (and try to see where my resume and interviewing skills could be polished up). Somewhat to my surprise, I got interviewed with somebody who I got along with and I had enough background in the areas they were looking for to get a job offer on the spot. They offered me a significant raise in pay (about 15%, and I'm sure I could counteroffer and pull it up to 20%... The HR recruiter seemed to really not want to lose me).

Is it prudent/okay to bring the offer to my pay review to see if my current company will match that pay raise, or is this considered rude? Along this line, if I was to do this should I try to bring the offer from the competitor higher before this review? Just looking for some guidance here on what is acceptable here professionally.

[startbyserving]

First, how interested are you in switching to the other company? You sound like you hit it off, so that is something you may want to consider.

Personally, I would talk to your current company sooner rather than later.
What I would say to current boss: "I have received an offer from a competing company that is a fair amount over what I make currently. I realize I have a performance review coming up. Would it be better to mention this in the performance review or go ahead and discuss it?:

Someone else may offer better advice.

[Tyler9000]

That seems like a good approach.

The main thing I'd add is to be careful about bringing up another offer unless you're serious about taking it. Mentioning another offer could be construed as a threat to your current employer (especially if communicated poorly), and you may shoot yourself in the foot if they call your bluff and you really aren't prepared to leave.

[jacob]

If you're bringing up competing offers from another company to your current boss, you should be ready to leave/get fired in case the boss says no.

It's essentially a gambit play.

[poleo]

Personally, and much thanks to the ERE book, I've had plenty of success with saying take it or leave it. As in, I say I want a raise (or something else) and make it very clear that I'm about to leave if I don't get it.

I actually find it better to not put a different job up against the current one, as this provides a sort of X-factor around me. I don't say that I have another job waiting for me - actually I just say that I don't know what I'll do, though I'll sure think of something.

My reasoning for why this works is that it throws my boss off balance. What the hell is he talking about? Is he just going to leave and not know what to do?

For most people this is a completely unacceptable thought. What then happens is that they think a little about it, find out that it's way too much work to start looking for someone else, so they give me what I want. Had I had a different job offer, I reckon it'd be easier to let me go, as they'd be passing me on, rather than letting this weirdo do ANYTHING.

If you're new to the working world, my motto would be Stay New To the Working World!

[Chris]

First, how interested are you in switching to the other company? You sound like you hit it off, so that is something you may want to consider.

^This. The competing offer doesn't matter too much if you're not willing to take the job.

If you do like your current company, throwing a competing offer in front of your boss could breed ill-feelings, even if they match/beat it. Since you have a review coming up anyway, I'd go in with a line something like, "I've been researching the market rate for my position in the field and discovered...". If your boss tells you you're wrong or unrealistic, you are then in a position to pull out your offer numbers. There are a lot of companies that hire at "competitive salaries", and then grow employee salary at a slower pace than the market, assuming most people will not the the initiative you did.

[Slevin]

@Chris, @jacob I talked with a few friends I have that are managers and they have echoed this. It is a method that works once, and it burns bridges. And somewhat it can be out of control of the managers. So if I am okay with taking the other position and want to just see what happens, maybe try to just ask for a large/matching raise based on competitive rates, and not the actual offer itself.

[thrifty++]

I think its a bad idea. Think of it like your manager coming to you and saying he has been talking to someone else who has offered to do your job for less money so can you take a pay cut.
I think its totally unnecessary in negotiation to bring something like this up. Just ask for what you want and you probably wont need to go into details. I would prepare to go into detail if necessary such as having details around market rates, what you have done for the company, what you are planning to do, your potential, your skills etc and then go into if you need to. You will be able to ask confidently as you know your worth and they may well know the market rate too.

[JasonR]

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[SimpleLife]

I've been through this MANY times. It's not worth it in the end. You're better off just taking the higher offer. Statistically, you will likely leave within a year anyways even if they counter. Why? Because the issues that caused you to look in the first place are still there.

I've been there so many times that I won't even make the play anymore. If I get a better offer, I'm making the move. Usually I'm looking because I'm not happy about something at work.

[Slevin]

I've been through this MANY times. It's not worth it in the end. You're better off just taking the higher offer. Statistically, you will likely leave within a year anyways even if they counter. Why? Because the issues that caused you to look in the first place are still there.

I've been there so many times that I won't even make the play anymore. If I get a better offer, I'm making the move. Usually I'm looking because I'm not happy about something at work.

Not that I intend to work for that long of a time, but do you move around often enough that it seems like an issue someone would see looking at your resume? That a hiring manager would be thinking "Hmm... Simplelife sure only holds down jobs for 1yr or less at a time".

[poleo]

My resume is totally like that. And, come to think about it, I tend not to get jobs I apply for. Yet somehow I always have a job (when I need one). I find the reasoning in this thread to career-centric. Who cares about work - you can do the stuff you love on your free time as soon as you're FI, and also underways to getting there.

[SimpleLife]

I've been through this MANY times. It's not worth it in the end. You're better off just taking the higher offer. Statistically, you will likely leave within a year anyways even if they counter. Why? Because the issues that caused you to look in the first place are still there.

I've been there so many times that I won't even make the play anymore. If I get a better offer, I'm making the move. Usually I'm looking because I'm not happy about something at work.

Not that I intend to work for that long of a time, but do you move around often enough that it seems like an issue someone would see looking at your resume? That a hiring manager would be thinking "Hmm... Simplelife sure only holds down jobs for 1yr or less at a time".

I change jobs every 2 years on average. Being in the IT industry, most people change jobs every few months, not years. I'm usually considered to work places for a long time by today's standards.

Also, I didn't say that you should take every job offer. I had several job offers, 3 to be exact, all of which paid 15-30K a year more than I was making at the time. That was without even trying really, I was not that into the jobs. I turned them down and a few months later I got a job offer for about 40K more than I was making at the time, about 150K, with better terms, a job I never applied or interviewed for, I was appointed, so to speak. THAT one I took. It's been almost a year at that job now, but I'm already preparing for the next move, hopefully with the same pay, and in a Senior Management position.

[SimpleLife]

Who cares about work - you can do the stuff you love on your free time as soon as you're FI, and also underways to getting there.

Not sure what your point is in the context of the thread, which is about whether to take a better job offer or not. Which jobs one selects has to do with becoming FI, so why not pick wisely to further the goal of FI, or the speed with which one gets there?

Also, don't assume you have endless time and health. I'm 34. I've been on my death bed twice in 4 years, with an illness that kills more people than cancer, car accidents and AIDS COMBINED in the US alone. Today, I was reminded of how nothing is guaranteed when I read the story of a 26 year old girl engaged to an NFL player, died 2 months after being diagnosed with ovarian cancer. Nothing is guaranteed...

[poleo]

Sorry, perhaps I wasn't clear. What I meant is who cares about the job itself - go after the money. Whatever component of fulfilment there might be to the job can be had many times over as soon as you don't have to work much anymore. Money being the vehicle to get there.

It's my turn to not understand how your point on things not being forever ties in? To me that's exactly the point - things aren't forever, so don't you waste your time on shitty work, with shitty colleagues and bosses. Get out of that as quickly as possible and do the things you love, because hey, life isn't forever.

A corollary is that I think OP should not only go for the better offer, but consider all other options to maximize his or her income potential too. Move somewhere else? Get other offers? Something I'm not smart enough to have thought of?