What are your odds your current employer will offer you a raise in response to an external offer? I know it's only business -- but doesn't damage working relationship with your manager if you were to get an external offer, then take a pay raise, instead of leaving? It'd make you appear as a flight risk.
I got a good promotion after threatening to leave. Then 2 years later got a retention bonus and 12% raise, without asking.
They key is, you have to be willing to do it, and can only play that card once with your employer. I have been at the same place 23 years, and played that card at year 20.
communication is key. they should be aware of the market rate for their employees and adjust compensation accordingly, but i try to be very clear from the get go that i'm in it for the money and how i define my relationship with their organization. i also tend to decline non-monetary perks to drive it home that i am motivated primarily by compensation.
