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People with good job security and good position in the labor market can do this. Lot of people already do shop around and try to get a raise, etc.

But are they letting their boss know that they are doing it?

Not during the process necessarily, but if they've received a viable offer sure.

Yes for sure, but that is the parallel. You won't let your boss know during the process.

I mean, the US president very much doesn’t have good job security, though.

resignation and successful impeachment rates are pretty low, so basically it's 4 years, and then later basically one can do whatever they want, they instantly have an amazing audience/market.

Once. Never again.

I guess it depends somewhat on your goals? It may not be optimal for your own career but it may be better for your boss to know?