I think "threaten" is the wrong word in an at-will employment context where the employee can be terminated at any time for any reason or no reason, barring exce

I think "threaten" is the wrong word in an at-will employment context where the employee can be terminated at any time for any reason or no reason, barring exceptional circumstances involving discrimination. I'd rather view it as someone requesting a market rate salary, with proof of what constitutes market rate. Moreover, the employee didn't have to give you a chance to retain them at all. They already have an offer -- they could have instead told you that today is their last day and good luck. If a valued employee came to me showing that he or she had received a large raise from another company and they really don't want to go but don't see how they can turn down the money, rather than resenting them I'd wonder (1) why were we underpaying a great employee at all? (2) why did we create a culture where they felt like they couldn't discuss this without another offer in hand?