"If the employee just wanted more money and feels they are worth it, then all they have to do is ask." No. The calculus is different. If it's a raise, it merel

"If the employee just wanted more money and feels they are worth it, then all they have to do is ask." No. The calculus is different. If it's a raise, it merely increases the cost of an employee. A counteroffer on the other hand counters several costs and risks. Hiring, training, loss of knowledge etc. "If the employee already starts looking for another job without even trying to get more money in his current position" Why do you presume that is the general case? I.e. does not ask for money or that they sought for another job. Best talent tries to get compensation their worth. They probably ask for raises - but they are probably also sought by recruitment consultants. If a raise is not coming, and a consultant asks for what they would be willing to work for - well, it's simply not a case of trying to leave.