You’ve probably heard this before: “The only way to get a raise is to get another job offer.” Yes, the outside offer can work, but you need to do it carefully. Otherwise, you risk appearing disloyal if you intimate that you’re going elsewhere, even if you have no intention of leaving. Instead of risking your position by issuing threats, subtly nudge your manager into giving you a raise by highlighting your loyalty. Even if you’ve looked into other jobs or have gone on some interviews, you can emphasize how much you like your job and the organization. You might say, “I’ve gotten a lot of calls from headhunters, but I’m not interested.” This shows your boss that you have alternatives but aren’t unfaithful. If you do have an offer in hand, explain that you interviewed because you wanted to explore what else was out there but you don’t really want to take it. You might say, “I love it here. I’m committed to staying, and I also want to be paid fairly.”
Adapted from "Setting the Record Straight: Using an Outside Offer to Get a Raise," by Amy Gallo
