Anchoring

## Anchoring

Anchoring is the psychological tendency for the first number mentioned in a negotiation to serve as a reference point that influences the final agreement.

### In Salary Negotiation

- If the employer says '$80,000,' the negotiation tends to settle near that figure.
- If you say '$95,000' first, the negotiation anchors higher.
- Research shows the first offer explains 50–80% of the variance in outcomes.

### Best Practices

- **Make the first offer** when you have good market data.
- **Set a high (but reasonable) anchor** — aggressive anchors are more effective than conservative ones.
- **Counter-anchor** if the employer goes first — immediately reframe with your own number.
- **Use precise numbers** ($93,500 not $90,000) — they signal research and preparation.

### Counter-Anchoring

If the employer anchors low ($70,000), don't negotiate from their number. Instead, state your own range ($85,000–$95,000) to shift the discussion away from their anchor.