There is a good article in CareerJournal.com today on accepting a counter offer. But anyone contemplating this strategy (i.e. using an offer from another firm in order to get what you want from a current employer) should beware. My BCG colleagues have written about the perils here and here.
My own philosophy is that counter offers can be used effectively for a very select and elite group. If you happen to be a superstar in every respect at your firm, but you are not getting the work or compensation that you feel you deserve, then maybe (just maybe) securing another offer is the way to go.
It is a very risky strategy, especially in a law firm environment where you’ll need broad support if you want to be elevated to the status of partner. So if you follow this strategy, heed the advice of Sarah Needleman in CareerJournal.Com.