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I am working at a firm, firm A, in Germany.

In about a month, I will have the yearly review of my performance at my current firm. The review is together with my direct report. I am up for promotion junior -> senior, and depending on my review that might be in 1 month or in 3 months.

A couple of weeks ago, I was contacted by another firm, firm B, and decided to walk through the interview process with them. In the end, firm B has offered me the position. They have offered me a senior position. The salary is a tad higher than at my current firm.

My first choice is the current firm that I am with and therefore the offer at firm B is to "find my market value".

Now, my questions are:

  1. Should I use the offer from the other firm in my review?
  2. If so, in what ways can I use it strategically?
  3. How do i most effectively communicate the offer to my current firm?

Thank you and let me know if you need further clarification!

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    When does firm B offer expire? Is firm B a direct competitor of firm A? You say that you'd prefer to stay with A, why? Is the job at A more satisfying or are you simply worried of change (new colleagues, new work environment, etc. – some people fear change)? Are firm A and B in the same area, i.e. have you considered potential logistic advantages of staying with A versus going with B? Does B offer benefits besides a small pay rise? Is the career path at B more favorable in prospective (further promotions with higher pays, chances to do more interesting work in the long run)? May 22, 2023 at 22:33
  • I believe there are other answers to the general question of "will quoting rates at other companies help me argue for a raise at mine". Haven't found a good one yet to call this a duplicate of, but it would probably be good to record other questions about negotiating a raise. Starting with the fact that it may not, in the end, be your manager's decision; at many companies all they can do is argue that you are a valuable employee and then upper management sorts everyone into ranking order, argues that out, and decides how many additional money gets distributed.
    – keshlam
    May 24, 2023 at 7:11
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    @keshlam you're probably looking for prior questions like this, this, this, this, this canonical and almost exact duplicate: How to use an external job offer to get a pay rise at current company? (UK)
    – gnat
    May 24, 2023 at 8:06

2 Answers 2

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Should I use the offer from the other firm in my review?

This can be an effective tool - but it's effectiveness largely hinges on you being willing to take the alternative offer in the event that they don't bite. It's also not a play without downsides - you can't use this very often (or you'll be seen as "crying wolf"), and even if it works and you get exactly the offer you want you've likely sown the seeds of doubt: warnbergg doesn't really want to be here and may leave at any time - maybe we shouldn't invest too heavily in them. The stats for long-term retention of employees following a counter-offer aren't encouraging and you have to assume they are going to know that.

If so, in what ways can I use it strategically?

Honestly, I think the best strategic use of this offer doesn't involve mentioning it to them at all. Instead use knowledge of the offer to bolster your own confidence in asking for what you know you're worth. Genuine confidence (as opposed to cockiness) in these sorts of discussions can be very convincing.

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    There is no evidence to support the counteroffer stats in the link you provided.
    – user20925
    May 22, 2023 at 21:18
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    @user20925 that's true, but since it's widely believed, there's a good chance that OP's employer will believe it too, so it is appropriate that the answer draws attention to it. After all, an employer's false belief can affect your life just as much as a true belief! May 22, 2023 at 23:35
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What I really don't like about the new offer is that it is not a large bump in salary. A promotion should come with a decent raise, say around 20% (at least here in the US). Is it important to you to have the title, preferred job, or more money? What will you do if your annual review comes very close to the new offer but no promotion? These are the kind of questions you need to be asking yourself prior to the meeting.

Depending upon your industry, it is very unlikely that you need to mention, let alone show, the new offer. The implied threat is always there. Even if your manager wants to retain you they may not have that option. It's nothing personal, they may be very limited in the discretion of raises and promotions. You having a clear understanding of what it will take for you to stay will make their and your job easier.

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    OP probably disclosed his current salary to B, so B just offered a little more. @warnbergg, you should also negotiate with B to bring that offer UP before going back to A.
    – Char
    May 25, 2023 at 15:13

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