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Often this is only temporary, though. They increase your salary, but it comes out of your next raise and you get fewer opportunities because your loyalty is in question, or if they're evil and the employment laws allow it they make you happy temporarily until they find a replacement. If you're company is prepared to do those things for you they should be willing to before you threaten to quit

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It's the job of the manager to create an environment where employees can go to the manager to discuss things which are not going well or change of career anytime without the fear of retribution. I'm mentioning this often to make sure everyone knows it. Last month we had a case where someone was unhappy being a Team Lead and we could change their career path to something more interesting with an equal level of contribution.

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