The employee who proposes leaving just has a good BATNA. We sell our labor and should let our purchasers know when we're raising the price. They can pay the new price if they choose. We don't need the moral weight of calling it extortion.

for software developers it takes time to learn their way around a new code base (usually 3-12 months), so low retention is highly detremental. economically a business can be better off giving a big raise than losing someone, paying recuiters, losing time on finding a replcement, losing time until the replacement gets up to speed, and eventually losing the replcement too. if this whole cycle could mean for example the business only get 1 year of effective work out of 2 years, in which case doubling the salary to retain someone is just as effective.

also it isn't extortion if someone gets a better offer elsewhere, and the offer cant be infinitly high.

to conclude no retention means lack of second order thinking.

I'm not advocating for this style of management thinking - in fact I despise it. But this is how many(most?) managers think, especially at big companies where productivity is not measured, or worse, measured poorly. In these circumstances, it's very very hard to get them to offer you a raise, and even if they do, it would be to prevent potential bad behavior (you leaving), than rewarding your good work and expertise. In fact, if you perform head and shoulders above your peers, the cause of the raise will still be the first reason - you'll get pissed off that your work isn't recognized, which will prompt you to consider leaving, which the management will try to prevent.

That's why the people getting raises won't be the ones who do the best work, but the ones, who complain about their salaries the loudest, or go to interviews and get counteroffers.

Remember - you are probably getting paid as little as the company can get away with paying you.

> doubling the salary

Except then word gets out that you’ll get a big raise at company X if you threaten to leave and they have to start paying everyone that amount. Even the people who would have otherwise stayed for 5 years at the lower salary.

This is why I’ve always assumed you have to change jobs if you want a raise.

or the netflix model of just pay top of market and then everyone knowing you pay a lot is a feather in your cap/recruitment tactic then a detriment.