Personally, I think of it as giving your employer "first dibs." "Hey, I've decided that I'm now worth $X. Since you've already hired me and it's less hassle to

Personally, I think of it as giving your employer "first dibs." "Hey, I've decided that I'm now worth $X. Since you've already hired me and it's less hassle to stay than to change jobs, I'm giving you the opportunity to meet my price before I look elsewhere." Assuming that you didn't just pull $X out of your ass, the company can then make its decision accordingly. But if you really think you're worth $X, I find it strange that you would get declined by the company and then say, "...oh. Well, I guess I'm not worth $X, then. Never mind." At the very least, you'd be looking at other companies that are willing to meet your price. After all, you got your number from somewhere, right?