Why your first salary matters more than you think
Raises are percentages of your current number. A low anchor early can quietly cost six figures over a career — here's how to escape it.
By Priya Nair · 2026-07-29
Raises compound. Because most increases are a percentage of your current salary, a low starting number follows you from raise to raise, job to job.
The anchor effect
Start 10% low and every 3% raise is 10% smaller in absolute terms. Over a decade the gap doesn't close — it widens.
How to reset a low anchor
- Switch jobs — external moves reprice you at market; internal raises rarely do.
- Refuse the history question — in many places employers can't require your past salary. Quote your researched range instead.
- Negotiate every offer — even 5% now is compounding money forever.
The honest ruleLoyalty is a fine reason to stay; it's a terrible pricing strategy. Check your market rate yearly even if you never plan to leave.