In my experience it works like this: you go to your boss as part of the review cycle and ask for a raise and your boss goes off and talks to the people that make those decisions. They say no. You tell your boss that you are going to look elsewhere, as you are on good terms, they ask you to at least see if they'll make a counter-offer before you hand in your notice. You end up getting more money than you wanted in the first place, your boss is happy that they've kept you.
Any sensible manager should know that if your staff is underpaid, they are very likely to be looking elsewhere. Personally I've always been supportive of my employees looking elsewhere, do you really want people that only work for you because nobody else will have them?
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In my experience it works like this: you go to your boss as part of the review cycle and ask for a raise and your boss goes off and talks to the people that make those decisions. They say no. You tell your boss that you are going to look elsewhere, as you are on good terms, they ask you to at least see if they'll make a counter-offer before you hand in your notice. You end up getting more money than you wanted in the first place, your boss is happy that they've kept you.
Any sensible manager should know that if your staff is underpaid, they are very likely to be looking elsewhere. Personally I've always been supportive of my employees looking elsewhere, do you really want people that only work for you because nobody else will have them?