Yeah, some companies have a policy of not making counteroffers at all, for this reason. Basically, if an employee asks for a raise, that is when a good manager

Yeah, some companies have a policy of not making counteroffers at all, for this reason. Basically, if an employee asks for a raise, that is when a good manager is going to decide whether to retain them or not. Because if you say no to an employee's request for a raise, but then make a counteroffer when they actually have another offer in hand, it is already too late. That is what bad managers do. As a manager, the second you say "no" to a raise, you need to start to prepare yourself for the probable outcome that that employee will go and get a higher offer, and quit. Most people don't ask for raises lightly, it is an act that requires a bit of courage. Chances are, if an employee works up the courage to ask you for a raise, it is because they really need it, and they are giving you a chance to retain them, before they start looking around.