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Today I want to talk with you just shortly about a psychological principle. It's called a cognitive bias called anchoring. A cognitive bias is basically how our brains work on an unconscious level that helped drive our decisions on a conscious level.
Anchoring is especially important when you are negotiating or when you're in a hiring process, because anchoring means the first thing that you judge influences your judgment on everything that follows. (Click here for more info on how we can help you in your interviews.)
So for instance, if you were to mention how much you currently make, and I know in some in some states they can't ask you that question, but they might ask you what your salary expectations are. But if you were to mention how much you make at the beginning of a hiring process, they're actually going to use that as a filter to, to basically weed you out if you're too expensive or even if you're too cheap.
This anchoring principle is really around, for instance, the first dollar amount that is mentioned either by you or the recruiter or the hiring manager. Whoever says that first dollar amount, that's where the anchor is.
It's because human minds are very associative in in nature. So, we're always looking to connect the dots between several things to make our world make sense. If you say a number in the beginning of the hiring process, you let them know that you're currently making $150,000 a year -- that's the anchor.
Therefore, they're probably only going to offer you $160,000 a year if they offer you the job. Whereas, they were prepared to pay $225K to $250K. You don't know because you've just set the anchor too low.
Watch the video above to hear my advice in negotiating the very best package possible.
If you would like to explore working with me personally to support you through your upcoming (or current) hiring processes, set up a convenient time to have a conversation with me. If it looks like I'm booked too far out, then email me directly and Lacey, my Executive Admin, will coordinate with you to find a time in the near future to talk.
