Cynopsis: Savvy Extortion

Article for Cynopsis email newsletter SAVVY EXTORTION

By Mark Levine Historically, one of the most effective means of boosting salary has been to explain to your current employer that you've been offered another job. Since the cost of finding and hiring a new employee is almost always more than giving a raise to an existing employee, most employers over the years have caved in and responded to this obvious extortion with a raise in order to keep you on board.

Today, this tool remains effective in the short term, but in the long term it is very dangerous. The successful extortionist will find him or herself on the short list of problematic employees not to be trusted and to be removed when possible. Using a job offer as leverage for a raise will work, but in exchange for that increase you’ve removed whatever safety net you had and painted a big target on your back. This doesn’t mean you shouldn’t provide your current employer with the chance to keep you. You just need to dilute the risk that you’d end up on the black list.

Ironically, the best way to do this is to present your taking the new job as a done deal, but to do so in a way that leaves the door just slightly ajar so they could push it open if they choose. That way, the idea of countering this outside offer originates with them, not you. It’s not an act of employee extortion; it’s an act of savvy management.

When you meet with your current employer say something like: “I regret to tell you I’m leaving. I was approached

by Acme Inc. and they’ve offered me a position.” Do not, I repeat, do not, go on to use the word “accept” in your announcement. Instead, let your current employer respond to your opening statement. This isn’t just semantics.

The word acceptance, rightly or wrongly, carries a legal implication, making any attempt on their part to keep you feel somehow unethical, maybe even immoral.

They will respond to this honest, direct announcement either by asking when you’ll be leaving—indicating there will be no counter offer—or by asking “is there any way we could keep you?” That’s the seed of the counter offer.

An honest but ambiguous answer, such as “I’ve loved it here and wish I could stay,” which again doesn’t include any actual mention of acceptance, provides them with the chance to make you a counter offer.

Don’t engage in salami slicing. Any negotiating will immediately turn this into an extortion plot. If the counter is large enough to keep you in place, accept it. If it’s not, thank them, but explain you’ve “accepted” the other offer.

That will shut the door cleanly.