It may work if you actually have another offer already lined up. Sometimes it doesn't work, so you need to be ready to take that other offer.
If you don't have negotiating skills, then find another job first. If you have skills, then you can threaten to quit without finding another job.
Does this mean we'll finally get a version of the Crookes Radiometer [wikipedia.org] that works as a light pressure engine and not just a heat engine? All this space nonsense is abstract to me, I want something I can hold in my own damn hands!
And I also want a pony!
Seriously, as long as we're speculating, can we all please admit that this is finally the breakthrough we need to reach warpgate technology?
So if the companies aren't even trying (which they aren't......increased liability can help with that, though), there's no way they'll succeed.
I hire people all the time and I've had to say no to great candidates who wanted more money than we could pay. I've also turned away applicants who thought they were worth more than they were. Most companies have a budget and they aren't going to exceed it.
That's different......if someone says, "this is my minimum, I refuse to go lower," then there's nothing you can do. But if they're flexible, it's a matter of finding a point where both of you can be happy.
Of course, if they really can make more elsewhere, they should go elsewhere. I've done that.
Never threaten to leave to get something.
I've seen this tactic work multiple times. In fact, in many companies the only way to get a reasonable raise is to leave or to threaten to leave. Many HRs have policies set in place to specially compensate people who have found another job.
I'll never know if I would have gotten more money had I gone higher, but that moment of insecurity still bothers me to this day.
Ask for a raise now. If the idea of asking for a raise bothers you, then it's because that insecurity has never left you. Once you overcome it, you will feel better about that day.
You can pretty easily take yourself out of the running for a lot of jobs by trying to negotiate salary (or by doing so clumsily)
I've never heard of this happening (to programmers).
I've messed up negotiations pretty bad, too (by telling them that I was going to give my current company a chance to counter-offer....it ended with the hiring manager yelling at me for a while), but they'll still come back.
The only thing I can imagine truly messing up negotiations is if you give an ultimatum, like, "I refuse to work here if you don't pay me 20% more!" Then you are setting your own limits. Be friendly.
So then, using negotiation tactics, I reiterated all the things I had done, all the benefits they were likely to see from me, and suggested a much higher value, about 3.5x their initial lowball.
Cool thing about negotiation, all those reasons that you reiterated don't even have to be logical. You just need to say "[words and words and words] therefore I deserve a higher salary." Remember their initial offer wasn't logical at all, either.
I'm not sure if it is market value. It could be at a premium.
Which means the 'market value' has just increased.