&quot;the perception of an employee wanting to leave a company goes from &#x27;terminable flight risk&#x27; to &#x27;an asset worth fighting to keep&#x27; as soon as you get an offer from another company.&quot;<p>This is so true. An offer changes the dynamic of the negotiation totally. I think the psychology and economics goes like this: If there is no counter offer, then the company would pay just more for the monthly asset they will likely have any how.<p>However, if there is a direct offer they are competing with, it means there is on the balance an acute need to find and train a replacement - one whom might actually cost more than the current employee is paid. Also, the value of the employee is validated by his demand in the job market.<p>The emotions, which will be present but subdued in a professional setting, are also different. Without a counteroffer, the employee will just sound greedy. With a counter offer, the employee is actually generous by offering the current employer a chance to save in hiring and training costs (unless the new wage is ridiculously high).<p>Silly and strange world we live in.