The problem with that theory is everyone that is capable of basic reasoning (which includes every competent engineer) already knows that getting an offer from another company at a higher pay and then quitting if it is not matched is a certain way to get increased compensation, wherever you end up working.
Failing to match when there is value to the company just means that every time you are faced with that choice, you always lose.
While the worst case with letting people know that that's a good way to get raises is that it puts upward pressure on wages until very few employees can get better offers that they'd be willing to threaten to quit for, and you still end up paying people not more than it is worth to retain them.
Failing to match when there is value to the company just means that every time you are faced with that choice, you always lose.
While the worst case with letting people know that that's a good way to get raises is that it puts upward pressure on wages until very few employees can get better offers that they'd be willing to threaten to quit for, and you still end up paying people not more than it is worth to retain them.