I joined the company as a junior engineer and the pay was a fair salary for the role. The first year I got a small 5% increase which is typical. So, in preparation for 2nd year annual review, I started applying for jobs and to see what I am worth and would like to use that as a base for negotiations. Note that I am currently happy with the company and has no intention of leaving.
I found that my fair market value would be 20-30% pay rise as a strong mid level engineer after few offers that I turned them down all. However, there this one offer that I simply can't refuse, basically it was for a senior role with almost 50% payrise. I thought my current company wouldn't be able to match it as I heard from people usually it's very rare that current company could give such an enormous raise. So, despite being very happy with my current company and boss, I accepted the offer and hand in my resignation.
My current company counter offered me that they would happily increase my pay by 40% and without a change in position. It is at the high end for mid level engineer and is quite high for non senior role.
I am tempted to accept the offer as I am currently still happy with my current company. But after reading much advice that are generally against accepting a counter offer, I'm concerned whether accepting would work in this situation? I believe they wouldn't increase my pay by 40% had I not give my resignation, probably more like 20%. So, I am more concerned about the intention of my current company...