How can MBAs get a higher salary? Ask the expert
View(s):In salary negotiations, making the first move often reaps great rewards. Nobody knows this better than Mr. Dhanushka Kulathilaka, an expert on post graduate management studies and one of the country’s most popular Business Consultants who has done exhaustive research on salary negotiations. Dhanushka’s paper, “Good misery! Anxiety Sours the Economic Benefits of First Offers shows how 
even though making the first move usually yields better financial results for employees, they feel worse about the process—and even the outcome.
Dhanushka says he talks to about 200 of the very best MBA students at senior levels of management in the country every year on how to discuss terms of employment agreements. Recently, he spoke with Daily Mirror about how to take charge of your negotiations. Below are edited excerpts from their conversation:
How did you come to your conclusions?
The research was straightforward. I had a negotiation simulation. Some had the choice of offering the first offer. Some were told they had to make the first offer, which is how sometimes real negotiations work. Then I asked them about the anxiety they experienced. Regardless of the group, on average, people were more anxious when they were making the first offer.
What did you find surprising about your findings?
I was surprised about the satisfaction with the outcome and the process. The anxiety is strong enough at the beginning of a negotiation that even though when people get a better outcome at the end, they still feel unsatisfied. You do better but feel worse.
What is the takeaway?
Students have to do research to see what the industry pays, and start with the high end of the benchmarks. They need to be seen as ambitious. Employers will look at how you negotiate your own salary to see how you will negotiate on behalf of the company. You have to perceive the engagement in a different way. You have to embed the negotiation into a broader discussion about your skills, and what you can bring into the organisation which will give the company paying you a higher salary – your competitive advantage. Always try to talk about your performances and new policies that you have implemented in your previous job roles. If you are 
negotiating within the same company you are working, it is always important that you remind the senior management as to what you have done in the past. In most cases senior management tends to take you for granted and tends to forget your past work experience for their own convenience. Welcome to the real business world!
What advice do you have for MBAs who are negotiating their salary?
Many MBAs don’t think they can negotiate before they get an offer. But they can plant the seeds for negotiation during the period you start your MBA studies so that you can start the negotiation process when you complete your MBA. You can plant the seed by informing your employer that you are currently following an MBA programme. It is sometimes important that you give your employer sufficient time to be ready for the negotiation process. When your employer is aware that you have started on your MBA, this automatically gives them enough time to study and measure your value over a period of time. You need to understand that the negotiation process is all about discussing how much you are really worth.
You should also think of the negotiation as just asking questions. Think of it as a nuanced conversation that is exploratory rather than a negotiation. You want to start a job feeling really good, as though you got a fair MBA salary.
What advice would you give to prospective MBA students?
My first advice to prospective MBA students is that it is of paramount importance that they learn to select the correct MBA program. Do not cheat yourself by opting for a cheap MBA. A Cheap MBA programme will teach you nothing but will only cheat you, which would be just the return on your investment. This necessarily does not mean that the most expensive MBA is the best choice. If you ask me what is a cheap MBA, I would say any foreign MBA less than Rs.500,000 is cheap. The reality is that good and recognised MBAs never come cheap. Always look at MBA rankings (rankings published on the Economist, Forbes, Financial Times, CEO magazine are internationally recognised rankings) the country from which the MBA is offered (UK, Australia & US are ideal options to consider), how long the MBA programme has been in existence in the country, if the local business school is it locally recognized and has international quality certifications i.e. ISO 9001 etc, the profile of students on the MBA, if the programme has helped MBA graduates progress in their career. Many prospective students always ask me “should I go for a 1 year program or a traditional 16 – 18 month MBA?” The answer is simple! If you want to obtain an MBA with a theoretical background you should look at a 16 -24 month MBA program, if you are a senior manager with sufficient amount of managerial work experience and looking to enhance your career progression you can opt for a 12 month MBA program. Email your comments to: givemeyourcomments@gmail.com
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