It's a sad reality. I'd add that it's often not necessary to go so far as leaving the job. Rather threatening to leave can be enough to render the same boost, assuming you've got the stomach for playing that kind of game.
But I've always read (here and elsewhere) that you should never take a counter offer. Or are you just saying to make it known in that you might leave, without a specific offer from another company on the table?
I should clarify that I'm not advocating the approach, rather just stating that I've seen it work in several organizations. Those cases were mixed, some accepted a counter others were up front, essentially saying "Look, do I need to go and get another offer for us to work this out?".
If I'm not mistaken, the thought behind not accepting counters is that it breeds resentment. In reality, I think it depends on how tactfully the process is handled.
Personally, my approach has been to hop and not accept counters.
