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> ... it is all game theory in the end and the complainers or negotiators will always tip in their favor. But what is "in their favor"? Hypothetically, I'm ne

> ... it is all game theory in the end and the complainers or negotiators will always tip in their favor. But what is "in their favor"? Hypothetically, I'm new to a field, interviewing with a company in another city. If I'm completely honest with them, then I might say, "You can make me a lousy offer if you want; I'd probably accept it. I don't know the job market, and I don't know your city. But soon, I will. And when I do, unless you offer me enough now to encourage me to stay, I'll be gone. And all your effort in finding me and interviewing me and moving me there and training me and bringing me up to speed on your business will be wasted. So why not just make me a decent offer now?" Of course, no one ever says that. But, viewed through that lens, I think it's clear that many businesses are awfully poor players of "the game", as well.

mtVessel 11y ago
Many people stay even after they realize they're underpaid, simply out of inertia. Companies knows this, and by getting you to accept a low-ball offer, they're just taking a calculated risk, and reaping the benefits in the interim, if not the long run.
- ggchappell 11y ago
  That's a good point. The trouble with an issue like this is that it is difficult to disentangle a calculated risk of the kind you are talking about from mere short-sighted thinking. People proceeding from the two different viewpoints could end up acting identically. And then there is the fact that the company is often not really the one making the salary decisions. Rather, someone has had hiring authority delegated to them. And this person's motivations in making an offer might not aligned with the long-term best interests of the company.
jleader 11y ago
I've heard several hiring managers say "recruiting is very expensive in both money and attention; while we don't want to significantly overpay you, we also don't want to underpay you and then have to go through the whole process again in six months when you discover your market value."

mtVessel 11y ago

Many people stay even after they realize they're underpaid, simply out of inertia. Companies knows this, and by getting you to accept a low-ball offer, they're just taking a calculated risk, and reaping the benefits in the interim, if not the long run.

ggchappell 11y ago
That's a good point. The trouble with an issue like this is that it is difficult to disentangle a calculated risk of the kind you are talking about from mere short-sighted thinking. People proceeding from the two different viewpoints could end up acting identically. And then there is the fact that the company is often not really the one making the salary decisions. Rather, someone has had hiring authority delegated to them. And this person's motivations in making an offer might not aligned with the long-term best interests of the company.

jleader 11y ago

I've heard several hiring managers say "recruiting is very expensive in both money and attention; while we don't want to significantly overpay you, we also don't want to underpay you and then have to go through the whole process again in six months when you discover your market value."