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Ask HN: Is there evidence for anchoring in salary negotiations?

8 pointsby kartickvover 5 years ago
When it comes to negotiating pay, two opinions are offered:<p>- Don&#x27;t name a salary; let the employer make the first offer, because it may be higher than what you&#x27;d have asked for.<p>- Anchor by naming a high salary, as high as can you say with a straight face given your skills.<p>Is there quantitative evidence of these when it comes to salary negotiation?<p>I came across one that says that &quot;I&#x27;m looking for $100K, but negotiable&quot; is better than saying &quot;I&#x27;ll even work for $1 but I&#x27;m looking for a fair salary&quot; but I&#x27;m not asking about anchoring high vs anchoring low. I&#x27;m asking about anchoring vs not being the first to name a price.<p>Is there any source of information more reliable than some random person&#x27;s opinion?

3 comments

sergiotapiaover 5 years ago
I&#x27;m director of engineering (50+ employees)<p>I&#x27;m given a budget and that&#x27;s my absolute ceiling. If there&#x27;s a high anchoring I just pass because there&#x27;s nothing I can do - the budget is the budget.
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drKarlover 5 years ago
I&#x27;d say companies usually have a budget for a given position. If you ask for a salary way higher than the budget they can&#x27;t match it. If it&#x27;s a bit higher than the budget and they need your skills I suppose there can be some negotiation from both sides, not necessarily on the salary. If it&#x27;s way below their budget they would probably think you don&#x27;t have the experience or are not confident in your abilities. If it&#x27;s within the budget, there can be a negotiation, but usually you&#x27;re good. Some companies like to hire as low as possible within the budget. Some companies want the best talent and will pay whatever as long as it ia within the budget.<p>So in short, you can try anchoring high if you know that will be at least in the ballpark of the budget for that position even if it&#x27;s at the higher end.
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matisoffnover 5 years ago
The strategy should differ based on the role and company, as well as your years of experience and accomplishments. I doubt there&#x27;s a one size fits all approach.