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Holy shit that's amazing. honestly what surprised me most is that you were upfront about the competitive offer thing and tney were cool with it
Right?! Especially if it was an off-the-cuff agreement. But if I had a few minutes to think it over, I would buy that anyone serious enough to get verifiable competitive offers using a third party would be serious enough to come back for those better offers if the current employer doesn't bite. (This is assuming you can't arrange new employment without the temp agency's involvement for whatever contractual reason. Not sure how they typically work.)
It's rural town USA. The company I was pressing to match the competitive offer was actually my own family's manufacturing corporation. The temp agency knew exactly who I was when they saw my last name. They had good fun joking about how they knew my family doesn't pay their employees enough but having the owner's son threatening to quit for better pay really solidified it as a good ole hardyharhar to them. I knew it. They knew it. Plus we have done a ton of business with them over the years filling entry level temp to perm positions, so the whole thing was really super laid back.