What type of bias may have occurred if a candidate negotiates for a salary above the planned range?

When a candidate negotiates for a salary above the planned range, anchoring bias is likely at play. This type of bias refers to the cognitive tendency to rely heavily on the first piece of information encountered (the "anchor") when making decisions. In salary negotiations, both the employer and the candidate may use an initial number as an anchor that influences their perceptions of what is reasonable to expect or offer.

For the candidate, if they enter negotiations with a strong belief about their worth based on previous salaries, market research, or personal value, this initial salary expectation can act as an anchor, making them more likely to request a figure higher than the company's typical range. Conversely, if the employer has a set range for the position but encounters a candidate requesting a higher salary, their assessment may also be influenced by the candidate's requested figure, potentially causing them to rethink their established limits.

This dynamic illustrates how anchoring bias can affect negotiations and decision-making processes, leading to outcomes that may reflect a distortion from the objective salary data. Understanding this bias is crucial for HR professionals when evaluating and managing compensation discussions.