re: How to leverage new job offer for raise/benefits at current job?

I've had a similar experience I can share in my career.

I knew I was underpaid so I talked to my manager about it. He wasn't sure if he could do anything so I ended up having to talk to my manager's manager. He, in a round about way, said he thought I was being paid fair for my experience. I disagreed based on research of the local market and told him he's basically putting me in a position where I can't be paid fair unless I get leverage. He agreed, I said ok and went back to work. A month later I walked in to his office with a letter for about $10k more than I asked him for earlier. He then beat that by $5k to keep me.

The important thing is not to talk about what's fair. Just have a conversation about facts irregardless of what is fair. My story was 8 years ago. I'm a manager myself now days. I know from personal experience now that it's hard for most managers to get any kind of money for their employees post original negotiation. I think it was less about him thinking I was being paid fair and more about the fact that going get more money for an existing employee is a real pain in the arse in our organization.

She really should look at the long term effects of going in to that new role. If it's a very respected place then working 2-5 years there might boost her in to an even bigger position at a third company for the following role. I've seen people go back to a larger role in the company they originally left. Point is think about how that new experience will contribute to the next role. If it's not a resume building position I'd look for a different one.

This last bit about the open position she applied for still being open. To me that's a bit strange. I'd leave that job on principle alone in that case. I've never worked in government though. What I've heard about government work is you don't get paid worth a flip and it's not what you know it's who you know.