Last updated on Jul 16, 2024

Here's how you can negotiate a raise that truly values your impact on the company's financial success.

Negotiating a raise is a critical conversation that hinges on recognizing your value and articulating it effectively. It's about more than just asking for more money; it's demonstrating how your contributions positively impact the company's financial health. As you prepare for this discussion, understanding budgeting and forecasting principles can give you the leverage needed to present a compelling case. By showcasing your role in the company's success through a financial lens, you can negotiate a raise that truly reflects your worth.

1 Know Your Worth

Before entering any negotiation, it's imperative to understand the value you bring to your company. Analyze your responsibilities and achievements, paying close attention to how they've enhanced the company's bottom line. Have you streamlined processes, brought in new business, or improved efficiency? Quantify these contributions in terms of financial gain or cost savings. This concrete evidence will form the backbone of your argument for a raise.

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Yassir Derbas, (IFRS, CFM)

Budgeting | Forecasting | Financial Modeling | Market Evaluate | KPI | ROI | Data Analysis | OPEX&CAPEX | ERP | FP&A | Leadership | Benchmark | Pricing | Strategics | Development | Risk Management | CVP | Analytical
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Believe in yourself, if you do not do thus no one will. Once believe in yourself, you can bring the best of you have, in addition, you will be a positive speaker which will lead to good negotiation. The negotiation skill is not an easy skill that you can maintain so you have to practice for.

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Elaine Bogart

Chief Financial Officer - Strategic & Collaborative CFO | Finance Team Builder & Multi-Functional Leader | Fueling Tech & Media Growth | Maximizing Efficiency & Scalability
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You are valuable! In addition to quantifying your worth, consider how expensive it would be to replace you. Recruitment and training costs, loss of productivity, loss of historical knowledge are quantifiable and very important to a business. Make sure you understand the economics for the company and have it ready for your discussion.

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Dr. Dinesh Sharma

CFO/Director Finance and Author
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To effectively negotiate a raise that reflects your impact on the company's financial success, begin by researching industry salary benchmarks and the company's financial status. Document your achievements with measurable results and specific examples that align with the company's goals. Time your request strategically, ideally after a major success or during performance reviews. Craft a confident, clear, and professional pitch, and rehearse it to anticipate possible questions. Be flexible, considering other benefits if a raise isn't feasible. Follow up with a written summary and express your appreciation for their time and consideration.

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2 Market Research

Equipping yourself with information about industry salary standards is crucial. Conduct thorough research to find out what professionals with similar roles and experience are earning in your sector. This data will serve as a benchmark for your salary expectations. Understanding where you stand in the market can provide you with the confidence and justification needed to assert your worth.

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Elaine Bogart

Chief Financial Officer - Strategic & Collaborative CFO | Finance Team Builder & Multi-Functional Leader | Fueling Tech & Media Growth | Maximizing Efficiency & Scalability
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Talk to colleagues and friends in similar roles, you'd be surprised how open they are to sharing salary information (assuming you are willing to share yours). Network with people in similar roles and find out what their company pays. And, many large recruiting firms and other companies publish annual salary reports that break out many roles by location, size of company, years of experience, etc. Obtain a few of those and compare them to each other and to what you and your colleagues are making. Additionally, check recruitment posts for similar roles - many are not required to post salary range. How does your salary compare?

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3 Timing Matters

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Elaine Bogart

Chief Financial Officer - Strategic & Collaborative CFO | Finance Team Builder & Multi-Functional Leader | Fueling Tech & Media Growth | Maximizing Efficiency & Scalability
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Timing definitely matters. Obviously if you know the company is having financial difficulties and planning a Reduction in Force, it's best to put off the raise discussion. But, some time AFTER the reduction and after the dust is fully settled, your skills might be much more on display. If you've taken on additional work or succeeded with a visible accomplishment(s), it might be the right time!

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4 Articulate Impact

When discussing your raise, focus on your impact on the company's financial success. Use budgeting and forecasting terminology to explain how your work contributes to cost management and revenue generation. For example, if you've helped reduce expenses or forecasted significant savings, highlight these accomplishments. By speaking the language of finance, you demonstrate an understanding of the business's economic goals and your role in achieving them.

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5 Future Contributions

While past performance is vital, employers are also interested in what you'll bring to the table in the future. Discuss your plans for contributing to the company's financial goals. Whether it's through innovative ideas to increase efficiency or strategies to drive revenue, showing a forward-thinking mindset can make a compelling case for why you deserve a raise.

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6 Negotiate Smartly

Finally, enter the negotiation with a clear idea of what you want but be prepared to compromise. Set a realistic salary range based on your research and be ready to justify it with your financial impact on the company. Remember that negotiation is a two-way conversation, so listen to your employer's perspective and be willing to find common ground. Your goal is not just to secure a raise but to do so in a manner that maintains a positive relationship with your employer.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Here's how you can negotiate a raise that truly values your impact on the company's financial success.

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1 Know Your Worth

2 Market Research

3 Timing Matters

4 Articulate Impact

5 Future Contributions

6 Negotiate Smartly

7 Here’s what else to consider

Budgeting & Forecasting

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Here's how you can negotiate a raise that truly values your impact on the company's financial success.

1

2

3

4

5

6

7

1 Know Your Worth

2 Market Research

3 Timing Matters

4 Articulate Impact

5 Future Contributions

6 Negotiate Smartly

7 Here’s what else to consider

Budgeting & Forecasting

Rate this article

Thanks for your feedback

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