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This may be the most effective ploy to get a raise, but it's also the trickiest. Here are some things to keep in mind when using the "I've got another job offer" card.
Be sure of your worth:
You may think that you're at the top of your game, but how does your company feel about you? There may be reasons that you weren't approved for a raise, or for as high of a raise as you'd like. Every company has at least one employee who maintains their job simply by not being bad enough to fire. If you're this employee, news that you have another job may be cause to break out the champagne, not the check book.
Be certain of your offer:
Perhaps a raise really isn't in their budget, unless your company has an open book policy you may never know for sure what the profit margins are. Or perhaps your boss thinks highly enough of your skill and talent that s/he feels they would be holding you back from your potential by trying to keep you. Or maybe they'll just call your bluff.
Who is the offer from?:
If it's a competitor, negotiations could go two ways. 1) You're given the raise and treated well to prevent company secrets from escaping. 2) You're let go immediately and escorted off the premises by security to prevent you from gathering more company secrets on your way out.
Pulling the "other job" card is dangerous business. It can work splendidly, not at all, or even backfire on you. In most cases, it only works once per company. Try other methods to get your raise first, and proceed only with extreme caution.
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