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What makes a toxic work environment?
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Look, agencies all know what's happening in the market right now. Telling your current performers to go get an offer from a competitor and bring it to them as proof of your worth is a d*** move. They don't appreciate you now, and they won't in the future.
Go get that promotion! That's what you're talking about, btw, not a title/pay bump.
I recently tried that.
I was open and honest about feeling undervalued. I gave my leader some time to pull things together on my behalf. After a while, I followed up with my boss at the time, who told me to check out what other companies are providing the same role to help build the business case to senior leaders.
While going through that exercise, I came across some great opportunities and applied. I went back and told me direct boss that I was doing that.
A couple of weeks later, I had an offer letter. They couldn't compete with the offer, so I moved on to my current place of employment.
I still have a great relationship with my former boss.
So my suggestions:
1. Transparency -
If you have a good relationship with your direct boss, I think being transparent is the way to go.
It gives them an opportunity to adjust things if possible, and it doesn't feel like a shock to them when you start looking else where.
2. Be ready to take the offer.
If you use the technique of showing an offer letter in hopes of getting a promotion or pay bump, make sure you are prepared to take the offer and leave if they can't pony up.
Many people have been using this technique over the past few months and some of my colleagues from a few different companies didn't even get a counter offer.
I’ve done it before, and it worked. Basically, I approached by asking if my review cycle could be moved up/if they had any updates on it. I also said something to the effect of “I like this team a lot, but I do have some options”. They took the hint :)
I think the way you phrased it here is great! If you have a good relationship with the boss, it shouldn’t be hard for them to understand that money/title are important. In turn, you can offer to hold off the other job offer for a little longer than normal while your current job figures out options. Good show of faith.