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Chief
If you get a better offer, just leave. Don’t ask for a counter offer.
Yes. Counter offers are often the only way to get a raise. Be aware you should be ready to leave as they often will not counter.
Pro
Especially if you're a junior. You're easily replaceable with someone even cheaper.
While getting a counter offer sounds nice in theory, I’ve found that by the time I have an offer in my hand from another agency I’m usually so eager to leave that my current agency could never pay me enough to stay
Counter offers are dangerous as you’ve just tipped your hand and they know you’re interested in leaving. Take the new job. 3 years is plenty at one agency and I would bet that you’re underpaid. The “etiquette” is look out for yourself (the agency is NOT your family and they would —and will—replace you in a heartbeat.) and don’t burn bridges.
I can say that unless I was in a bad situation I never matched someone who said they had a better offer. If it gets to that point, they are leaving for more reasons than just money. The few times I did match someone they ended up leaving less than a year later.
At the junior level it'll be tough to expect your current gig to counter. At higher levels though, depending on the situation, this is a viable tactic, especially if you love your current job but there is an interesting new offer on the table.
Back when I was a CD, I was super embedded with one of our largest accounts. Client would ask for me by name to ensure I was working on each new campaign. I got an offer for more money at another shop and it resulted in a bit of bidding war, with 3 rounds of back & forth offers + cash signing bonuses. In the end I stayed at my current job and continued there for another 4 years before ultimately leaving.
Has to happen eventually. Just be careful or completely avoid any agencies within your same holding co.
Holding company agencies are circling the drain. Grab the client-side opportunities
Knew a CD team that went to the president of the agency with an offer from another agency in hand and they were told to hit the bricks. This isn’t a game, if you’re looking for more money at your current job, be ready to bounce if things go pear shaped.
Early in your career, you move out to move up.