Should you or shouldn't you? How to use a job offer to get a raise

It might seem a bit like corporate espionage, but leveraging a job offer from another company to get a raise from your current employer can be an effective way to get a salary increase if you’d like to stay where you are. Your current boss probably doesn’t want to lose a valuable employee, much less incur the expense of hiring and training someone new, and may be willing to negotiate a higher salary (or at least match your current offer) to keep you. 

In this article, we’ll discuss:

• Should you leverage a job offer for a raise?

• How do you negotiate a raise using a job offer?

• How do you leverage a job offer into a promotion?

• How do you write a counteroffer for a raise?

Should you leverage a job offer for a raise?

Whether you should really depends on your needs. Are you unhappy at your current job? Or is it just a matter of salary? If it’s the latter, don’t fly the coop without talking to your boss first. When using a job offer to get a raise, ensure that it’s a request, not a demand, as your boss might feel cornered by an ultimatum and tell you to move on. 

You also have to back up your request for the raise with a detailed account of your skills, experience, and accomplishments. Decide which job you really want before you try to leverage more money from your current employer.

How to use a job offer to get a raise 

Your current boss may or may not be aware that you’ve been looking for a new job, so it’s best not to surprise them. Forewarned is forearmed, as the saying goes, so if you’re looking to use a job offer to get a raise from your current employer, you need to give them a heads up. Do some prep work ahead of time to have all the information needed to make your case and increase your chances of a positive outcome. 

Here are five things you should do when using a job offer to get a raise:

1. Know what you want and come up with a plan

Just because someone offered you a job doesn’t mean you have to take it, even if you’re actively looking. Take some time to decide how this new position aligns with your career goals, and if it’s a better environment for you. If you decide that you'd rather stay put, you can use the fact that another company is interested in you as leverage in requesting a raise from your current employer. But, you have to decide what you're going to do if denied. 

Also, remember that there's more to a job than salary. Perhaps your current employer isn’t in the position to offer you more money but is willing to provide other benefits such as additional PTO, a flexible work schedule, or a work-from-home opportunity. Have a plan to decide what you can and can’t accept in lieu of money.

2. Do your homework

Be aware of your value in the marketplace. Research job boards and salary sites (such as Career.io's Salary Analyzer) to determine how competitive your current salary and job offer are by using current salary data from your respective industry. Also do an inventory of your skills, recent performance evaluations, and accomplishments (using quantifiable data) so you can support your request and remind them what you bring to the table before using a job offer to get a raise. 

3. Make an appointment with your manager to make your case

Don’t spring this on your boss while they’re eating lunch. Make an appointment and let them know the purpose of the meeting. Before you do this, though, think about how your boss will react—do you think they’ll be open-minded, or will they see it as an act of betrayal? If they’re not going to react well, you may not want to say anything and simply decide whether you’re going to stay or go. 

If you decide to meet with your manager, let them know that you’ve received an offer but would like to grow with your current company. Your manager will probably be more receptive if they don’t think you’ll jump ship or ask for money each time you get an outside offer. Reaffirm your enthusiasm for your current role and express gratitude, but let your boss know that while you like your current job, you feel it’s important to be paid fairly. Stay calm and professional; diplomacy is your friend.

4. Don’t lie or make threats

Do not lie about a job offer you don’t actually have to try to get a raise; it can fail spectacularly, and give you the reputation of being dishonest. And, you may find yourself being shown the door. Similarly, never threaten your manager. If things are going well at your current job, you shouldn't feel the need. And avoid ultimatums at all costs. When push comes to shove, they might just say, "So leave."

5. Be prepared to hear the word “No”

Even the most well-intentioned negotiation doesn't always go the way you want it to. Despite your best efforts, your current employer may say, "I'm sorry, but we just can't match that other offer." At this point, you need to be prepared to shake hands, say, "Thank you very much," and take the other job.

How do you leverage a job offer into a promotion?

If you’ve received an external job offer, but would prefer to move up within your current company, you can leverage that job offer into a promotion. Before you make any decision, weigh the new offer against your present situation. Think about the pros and cons of leaving your job, since it will mean starting over with building colleague relationships, missed projects, and seniority. 

Then, inform your manager about the offer and that you'd rather stay where you are but only if you can receive a promotion. Have the data to back up your request and be polite, professional, and confident. Show them why you deserve that promotion and how it will benefit them. Again, you'll have to decide if whatever your current company is willing to offer meets your needs and goals and make whatever decision is best for you. 

How do you write a counteroffer for a raise? A helpful template

Using your job offer to get a raise may not elicit the response you were hoping for, at least initially. If it feels like your current company is opening the door for further negotiation, you can use the following template to counter their offer and use a job offer to get a raise: 

If you need help searching for your next job, consider Career.io’s Job Search Strategy tool, which will provide you with the tools, coaching, and expert guidance you'll need to navigate your job search with confidence.

Key takeaways

1. Whether you should leverage a job offer for a raise really depends on what your needs are, and whether you’re willing to walk away if your current employer can’t match the offer.

2. If you want to negotiate for a raise, research, meet privately with your manager, state your case, and be prepared to accept their answer.

3. Don’t lie about a job offer or give your boss an ultimatum. It could damage your professional reputation, and they just might call your bluff and show you the door.