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An external job offer possibly too good to pass up comes along. Perhaps you love it at your current workplace but think you could be better off with a fatter paycheck. And here you’re wondering how to get a raise when you get another job offer!
You’re not alone. I’ve been in your shoes countless times. And I understand that if you’ve been working hard, it’s only natural to desire an extra edge to make more money.
This post has got you covered! It’ll cover virtually everything on asking for a raise with an offer from another company.
We’ll discuss why an external offer is such a solid anchor point for salary negotiation, things to consider before making a move, and steps to maximize your success. Also included is an example script for your reference.
Let’s do this!
Why Having Another Job Offer Gives You Negotiation Leverage
Many people who haven’t asked for a raise in years fear they’ll risk their job by taking the initiative. Fifty-five percent of 3,000 UK employed adults surveyed by Reed Recruitment are no stranger to this.
But another job offer offers you a powerful negotiating tool: leverage. It screams value—and that could mean something in your current workplace.
If someone else is willing to invest time and resources into poaching you away from your current job, your boss risks losing a valuable asset if they don’t fulfill your salary requirements. They might also need to consider the cost of recruiting and training a new employee.
Having options is powerful!
If there’s one thing we’ve learned from the business world: buyers love options. The more choices available, the more likely they’ll make an informed and beneficial decision. The same concept applies when asking for a raise with another job offer.
By showing your current employer how much others value what you can bring to their organization, you can proceed to request a raise without being desperate.
In addition to being more confident in your abilities, with an external offer at hand, you’ll be less afraid of retaliation from your employer if things go poorly during negotiations for higher pay.
But be careful!
Don’t use this strategy unless you’re confident the other job would be a good fit for you. Also, leveraging an external offer as a negotiation anchor point if you intend to quit soon could reflect poorly on your reputation.
Considerations Before Asking for Raise When Offered Another Job
Don’t just storm into your boss’s office demanding more money only because you’ve received an attractive offer from another company. Here are some precautions to consider:
Evaluate the new opportunity carefully
You don’t want to make an impulsive decision. As with any job offer, understand the full value of the new opportunity and how it will fit into your career goals.
If the potential salary is higher than your current one, that’s great—but it might not be as lucrative in other ways. What benefits are included? Are there bonuses or commission structures that could significantly boost your earnings over time?
While these factors may seem irrelevant at first glance, they can be just as important as base salary when evaluating a job offer from another employer. So, make sure you’re comparing apples to apples before using an external opportunity to negotiate with your current employer.
Bottom line: Negotiate your salary only when sure that taking the external offer is better than staying where you are now.
What are your long-term career goals?
Think about your long-term goals and ambitions. Are you interested in moving up within your current position or firm? Do you want to take on a new role or title? Would the new opportunity help or hinder your career aspirations?
It all comes to having a conversation with yourself about what matters most at this stage in life and career development—the money or the work itself. Does working at Company B mean more than another $5k per year? Or does it mean being able to do something entirely different from what you currently do at company A (but still use all those skills)?
If the second job offer aligns with your career interests and life plan, now is the time to make that move.
Rethink your value to the company
Before you go in for that raise with an external job offer, consider whether your employer would be happy to see you go. This will be more difficult if you’ve been at the company for a while and have established yourself as a valuable employee.
On the other hand, if you’re a new hire or your performance has been lacking lately, you’re likely dispensable. In such cases, asking for more money will make your boss think they’re paying more money just to keep you around. That doesn’t make sense for a business’s bottom line.
So, consider how often and in what capacity your boss interacts with you. Do they praise your work? Are they genuinely invested in helping you improve? If the answer is yes, this might mean they’re willing and excited about keeping you around.
Acquaint yourself with the current happenings in the company
You don’t want to ask for more money at an unstable company where the next round of layoffs is right around the corner. So, take some time to learn whether they are doing well financially before making your request.
Look at the company’s profit margins and revenue growth over the past few years and its debt load, cash flow, and profit margins. Also, look at their client base and see if they’re losing any major clients. A glance at its website and press releases could reveal its latest investment round or acquisition.
If your research points to some financial stability, it might be worth asking for more money as a counteroffer on the external job.
With the above considerations in mind, let’s focus on how to get a raise with another job offer.
Related reading: How to Ask for a Raise When the Company Is Not Doing Well Financially?
How Do You Ask for a Raise When Offered Another Job?
You’ve assessed the entire situation and determined that the external offer is worth your consideration. It could mean more money, better benefits, or a better fit for your skills. But you figured out that you could use the offer as your salary negotiation leverage instead. How do you maximize the possibilities of success?
Here’s how to ask for raise with another job offer:
- Know your worth
- Build your case for why you deserve a raise
- Ask in person, but first practice your pitch
- Be honest about the external offer
- Be prepared for what could happen next
- Don’t burn bridges if leaving is the most logical option
Know your worth
You don’t want to request too much or undercut yourself. It, therefore, makes sense to research the market rate for people with similar skillsets and experience levels in your field.
Look online (preferably on PayScale or Glassdoor) or ask friends or colleagues holding a similar position. Use this information as part of your argument when making your case for a raise. It’s also helpful to know the kind of raises people typically get at your company over time.
You could use the amount the new job would pay to calculate the percentage increase you’d need to stay with your current employer.
For example, suppose your current salary is $60,000, and the new job pays $65,000. In that case, you’ll need around an 8% increase to stay put. But note that most U.S companies are only willing to hike pay by an average of 3.4% in 2022.
Build your case for why you deserve a raise
Another critical pointer on how to get a raise with another job offer is to make a compelling case for why you’re worth more money.
The more successful you’ve been at work, the better your chances of getting a raise.
What have you accomplished since joining the company? When did these things happen, and how did they benefit the company? Ensure these achievements are quantifiable and tangible.
Better yet, highlight your growth potential. Does your job offer opportunities for advancement or future projects? If so, explain how those could benefit both parties involved — such as increased knowledge or exposure outside of the company — plus how much more money they could bring if executed successfully.
Ask in person, but first practice your pitch
Don’t email or text your boss requesting a raise with another job offer. Professional courtesy demands that you talk about it in person. That will make them feel more invested in the conversation and more likely to agree with your request than if they just receive an impersonal message.
An email notifying your boss about the meeting is highly appreciated.
Having a solid argument is not enough—you must deliver it right. So practice your pitch loud with a friend until it sounds natural coming out of your mouth. You want to be confident without sounding desperate or arrogant.
Be honest about the outside offer
I know it can be scary to ask for more money with another offer on the table — particularly if you’ve been at your current job for a while and don’t want to rock the boat too much.
But if the external offer makes sense for your career path and financial needs, now is probably the time to take advantage of the opportunity before it slips away forever!
So why should you inform your boss about the external offer and why it’s a good opportunity? It doesn’t just cement your integrity. That could also compel your boss to come up with a counteroffer that matches or beats the external opportunity to make you stay (that’s provided you’re doing your job well)
But don’t frame it like you’ve been exploring opportunities outside the organization. Say the offer found you, not the other way round.
Be prepared for what could happen next
When considering how to get a pay raise with another job offer, it is critical to prepare for what could happen next.
Your boss might offer you more money as an incentive to stay with the company. Or they might say no but offer some other incentive such as more vacation days or better benefits.
But don’t get too excited. Sometimes it’s better to take the new job and avoid unnecessary drama.
If the company truly values your work and has enough budget, there should be no hesitation in rewarding you financially. But do they value your contribution, or is this just lip service? If it’s the latter, consider moving on before you start resenting them and your professional relationship suffers.
Don’t burn bridges if leaving is the most logical option
So, a pay raise is unlikely, and you want out. It’s natural to feel excited and eager to start the next chapter of your career. After all, jumping ship could mean a 10-20% increase in your salary.
Sure, it can be tempting to make some rash decisions when quitting! But because your reputation will follow you virtually everywhere, ensure what you do reflects the kind of person you want to be.
If possible, give a notice in advance so your employer can find and train a replacement. And please let them know if there are any open projects or pending tasks that need attention before assuming new responsibilities elsewhere.
Remember, your current employer could come back with a better offer in the future. In addition, you could change course down the road and want to come back home. But the door can only be open if you leave on a positive note.
Example script of what to say
It can be tricky to formulate the right words to say to your boss when thinking about how to get a raise with another job offer. Feel free to customize the example below to your specific situation and needs:
“I appreciate the opportunity to meet with you.
I wanted to touch base with you about my future with [current company]. I have been working here for [X] years, and I love the team and the work we do here.
However, I have recently received an offer from another company that I would like to pursue. They are offering me a salary of $[salary number], which is significantly higher than my current salary of $[current salary].
I’ve made some great contributions, building a new system to track customer satisfaction that has reduced customer complaints by 20%. Other notable contributions include [a list of quantifiable achivements].
I’m confident that my contributions have been and will continue to be valuable to this company.
My growth potential is also worth noting. In my last review, you stated that I’m ready to take on more responsibility and leadership roles within the team.
Rather than take the new offer, I wish to ensure that my compensation reflects both the value of my contributions and my potential for growth within this role. I hope to increase my salary from $[current salary] to $[salary number]. That would more accurately reflect my value here and make it possible for me to take on more responsibilities in the future if that would benefit the company.”
And folks, that’s how to get a raise with another job offer.
Sure, an outside offer extends beyond a bonus to check the box—it can be powerful leverage in determining your future with your current employer. But while it’s a game-changer, it’s something to approach with careful thought.
A good starting point is determining the offer’s worthiness and your current standing in the company. Once you complete your research and evaluate all angles, use the above tips to pursue that coveted bump.