17 June Whoever Sets the Anchor Defines the Playing Field
How to use anchoring correctly as a negotiation tacticThe boat rests calmly on the water. At first glance, everything seems open and almost limitless. Movement appears possible in every direction.
And yet, one single point determines how far the boat can actually move: the anchor. Once it is firmly set in the ground, the radius is defined. The boat can still drift slightly, but it can no longer move freely or too far away.
That is exactly how anchoring works in negotiations.
The first offer acts like an anchor set into the ground of the negotiation. From that point on, there is still movement – arguments, concessions, counteroffers. But the range of outcomes often stays much closer to the original reference point than we realize.
Whoever sets the anchor does not just influence the first number. They define the entire negotiation range.
So the key question is: are you deliberately setting your anchor, or are you already negotiating within the range the other side has defined for you?
What to do when someone sets the anchor for you
Three things help negotiators:
- Do not comment on the other side’s anchor. Once you discuss it, you have already accepted it as a reference point. Respond with your own anchor.
- Realistic and well-justified, but clearly on your side of the negotiation space. Not in the middle – the middle has already shifted.
- Make the reference point explicit. “We should not compare this to your demand, but rather to market data / last year’s baseline / industry standards.” Whoever controls the frame of reference regains influence.
Anchoring in action: wage negotiations 2025
In January 2025, wage negotiations for Germany’s public sector began. Verdi and the civil servants’ union set a high anchor: an 8% wage increase, at least €350 more per month, plus three additional days off. Employers reacted immediately: too expensive, not feasible. For weeks, public debate revolved around exactly these demands. The final outcome after mediation: 3% from April 2025, another 2.8% from May 2026, a minimum increase of €110, and an additional vacation day from 2027.
At first glance: less than demanded. Strategically: a clear anchoring effect. Because starting with 5% rarely ends just below 6%.
The anchor shifted the negotiation space long before the first formal round even began.
Sources:
GEW Baden-Württemberg: “Tarifrunde TVöD 2025” https://www.gew-bw.de/tarif/tarifrunde-tvoed-2025
dbb civil servants’ association: “Income round 2025” https://www.dbb.de/einkommensrunde/einkommensrunde-2025.html
GEW NRW: “TVöD wage round 2025 – federal and local authorities” https://www.gew-nrw.de/tarifrunde-tvoed-2025
Next week: Good Cop – Bad Cop, the oldest dual role in negotiation strategy.
Back