[vkjv]

He asks for his salary to be re-aligned with industry standards and in many cases they will oblige.

In most cases, businesses are reasonable. They aren't going to volunteer to pay you more out of the goodness of their heart, but (most) of the time it doesn't hurt to ask. Just don't go threatening to leave if they don't.

[MagicWishMonkey]

If your company doesn't appreciate enough to pay you market rate unless you explicitly ask for it, you're better off finding a different employer.

[ryandrake]

I've never, in 15+ years of employment, ever seen a company that will increase your salary simply to square you with market rate. It's always "here's your cost-of-living" increase (which is based on your current salary). Or, "You're doing a good job, here's a raise" (which has nothing to do with market rate). They will, however decrease your salary as market rate goes down.

[MagicWishMonkey]

I've never seen it happen, either, which is why I tend to jump ship every 12-24 months.

I really don't understand why companies are so nonchalant about employee retention.

[UK-AL]

You don't threaten to leave. You leave.

[jschwartzi]

Yeah, I would say to be prepared to be let go or tender your resignation if you can't reach an agreement with your employer.

Sticking around for the original salary after renegotiating tells them either that you didn't care that much to begin with, or that you'll be taking a lot of calls and personal days in the next couple of months.