Using a counter-offer is perfectly valid, and common. I don't think that the act of referencing a counter-offer is going to burn a bridge with a current manager. Not inherently at least. It really depends on the existing relationship with the manager and the way that the request for a raise is made.
If the request is made in an aggressive, abrasive, or cocky manner, then that could definitely have negative results. However, if the request is made in a calm, tactful, and results-focused manner, I don't see why having a counter-offer would be bad.
Employee turnover is costly.
A manager's job is to leverage the skills, expertise, and labor of their team to achieve the goals of the company. Typically that means maximizing revenue while minimizing costs. Hiring a new engineer is costly in terms of a company's time, money, and efficiency. A new engineer has to be recruited, interviewed, onboarded, and then after a few weeks, they'll start getting up to speed. Theoretically, this new engineer would be paid the same amount as the engineer that was requesting a raise. So, the entire onboarding process would be significantly more expensive, than just giving the existing engineer a raise to keep them from leaving for a competitor.
It's a win-win.
The job market fluctuates with the economy, so average salary ranges change all the time. That means it's up to companies to be competitive with how they compensate their employees. Liability wise, there's no telling when an employee may just leave. Typical employee contracts have a clause stating that either party can terminate the contract with little to no notice and without reason. Staying competitive in the job market is just another way to draw in highly sought-after talent.
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That's a good question!
Using a counter-offer is perfectly valid, and common. I don't think that the act of referencing a counter-offer is going to burn a bridge with a current manager. Not inherently at least. It really depends on the existing relationship with the manager and the way that the request for a raise is made.
If the request is made in an aggressive, abrasive, or cocky manner, then that could definitely have negative results. However, if the request is made in a calm, tactful, and results-focused manner, I don't see why having a counter-offer would be bad.
Employee turnover is costly.
A manager's job is to leverage the skills, expertise, and labor of their team to achieve the goals of the company. Typically that means maximizing revenue while minimizing costs. Hiring a new engineer is costly in terms of a company's time, money, and efficiency. A new engineer has to be recruited, interviewed, onboarded, and then after a few weeks, they'll start getting up to speed. Theoretically, this new engineer would be paid the same amount as the engineer that was requesting a raise. So, the entire onboarding process would be significantly more expensive, than just giving the existing engineer a raise to keep them from leaving for a competitor.
It's a win-win.
The job market fluctuates with the economy, so average salary ranges change all the time. That means it's up to companies to be competitive with how they compensate their employees. Liability wise, there's no telling when an employee may just leave. Typical employee contracts have a clause stating that either party can terminate the contract with little to no notice and without reason. Staying competitive in the job market is just another way to draw in highly sought-after talent.