Salary blackmail

The best response is generally to say "No." Giving in from the fear of losing a valued employee who has special knowledge or skills sets a dangerous precedent. A practice of working deals with each employee could lead to claims of favoritism or discrimination. Moreover, the employee may demand more money soon and other employees may demand a pay increase as well. An individual's discontent can spread rapidly.

The reason for the request may go far beyond compensation. Try to find out the reason for the discontent. Gather data that can help you adjust your compensation plan if necessary. The best defense against salary blackmail is a good policy with fair compensation.