> [Edit] To clarify the blackmail note: It's better to talk in the weekly 1:1 about salary expectations, changing markets or during people development focus, th

> [Edit] To clarify the blackmail note: It's better to talk in the weekly 1:1 about salary expectations, changing markets or during people development focus, than to pull up a competing offer out of your hat while not talking about your dissatisfaction with pay during weekly 1:1s. Talking about my dissatisfaction with pay during 1:1s has never got me a raise. Getting a competing offer has. > 1. If the employee is only motivated by money, he will be gone rather sooner than later as there is always a higher offer around. I may not be motivated only by money but money is a motivation. I am selling my skills in exchange for money, so it is in my interest to sell my skills to the highest bidder that matches my other requirements such as good role, autonomy at work, etc. > 2. If you give in once to this, the employee will come back 6 months later with demanding the next pay rise. Only if you are paying him below the market rate. If the pay is at par with market rate, it is not going to be so easy to come back 6 months later with another significant pay rise that is hard for you to afford.