I operate a small business and there is no money in the budget for raises for the rest of the year. My best employee just told me that she has been recruited by another company, but does not want to quit. She said she feels compelled to take the other job because of the salary increase, but would turn down the other job if I can give her a raise. (Her last raise was 18 months ago). It feels a little like extortion. I don’t want to lose her and I also do not want to be manipulated into giving a raise. Should I give her the raise under these circumstances rather than lose a valued worker?