What you’ve heard about anchoring in negotiations is wrong
“You always say not to share my preferred salary with the company. But if I don’t share it, what if they anchor me too low?”
Hey friends,
“You always say not to share my preferred salary with the company. But if I don’t share it, what if they anchor me too low?”
This is a question that comes up often in our Q&As or when we work with clients.
You may have heard of anchoring in Negotiation 101. It means the number that’s thrown into the discussion first will shape the rest of the negotiation and inform the ultimate number you end up with.
However, job offer negotiations are more complex, and this does not necessarily hold true. A few reasons why:
1️⃣ It’s not in the company’s best interest to anchor you too low.
If the company pays you too little, you become a flight risk and they have to think about retention. It goes against their own best interest to anchor you too low, so they likely will not.
2️⃣ Negotiations are as much about gathering info as they are about making demands.
You gather a lot more information when you see what number the company comes up with than if you come up with a number yourself.
3️⃣ There are many levers you can use to move up their budget.
Even if they initially place you at the bottom of their range, that is rarely the end of the story.
As an example, the most straightforward lever is having another job offer. When that happens, companies are often happy to pay you at the top of their budget so they don’t lose talent to the market.
Anchoring can matter. But in job offer negotiations, it’s only one part of a much bigger picture.
Best,
Gerta & Alex
Cofounder, YourNegotiations.com
P.S. Are you job searching or have upcoming negotiations?
Book a free call with us, where we’ll learn more about your situation, offer some free tips, and explore if we’re a good fit to work together: https://calendly.com/alexhapki/call
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