You’re not alone if the idea of asking your boss for a bigger budget makes you start sweating. As they have previously been denied or because they are unsure of what to say, many people are reluctant to request a budget increase.
The good news is that, according to a recent Verdantix survey, more than half of businesses intend to increase their investment on EHS initiatives in 2023. In other words, if you know how to ask, the budget will be there.
These suggestions will help you successfully request a budget increase this year, whether it’s for a conference you want to attend, a new training initiative, a software buy, or something else you require.
How to request an increase in the budget
- Make a list of what you’ve accomplished with last year’s budget
- Identify why you need more money
- Be specific about how much you’re asking for
- Align your request with business objectives
- Show the cost of doing nothing
1. Make a list of what you’ve accomplished with last year’s budget
Reviewing your accomplishments from the previous year’s budget is a wise approach before you seek more money. You’ll be in a much better position to ask for a EHS budget increase if you can demonstrate how the work of your department benefits the business.
Find ways to link your effort to the company’s profit. For example, you can demonstrate how your distracted driver training program has decreased the frequency of vehicle accidents and how this has led to fewer injuries, less money spent on company vehicle maintenance, and fewer liability claims.
2. Identify why you need more money
There are various situations where you could need to request additional funding. For example, you might have hired a lot of new staff the previous year and will need extra money to train them on your safety program. If your existing system is out-of-date or doesn’t work with your other company systems, you might also need to buy EHS software. A budget increase is permissible in cases where there is an increase of duties, the hiring of more employees, or a special project.
3. Be specific about how much you’re asking for
You must first identify why you require more money and then how much you need. Although it’s not always simple, the extra work is essential. The last thing you want to do is request additional money a second (or third) time because your initial estimate was flawed.
Start by looking at the budgets other businesses are setting aside for initiatives that are comparable to yours to get a sense of how much you’ll require. You can estimate your costs with the help of vendors, industry websites, and benchmarking studies.
4. Align your request with business objectives
The greatest way to increase your chances of success is to demonstrate how your request is in line with the objectives of the business. For example, be prepared to discuss why more funding for EHS software is necessary for the company as a whole. Will it enable the business to make savings? Avoid an expensive accident? Lower insurance premiums? Even though it may seem clear to you, it’s crucial to make it clear how your request would help the company as a whole.
5. Show the cost of doing nothing
For those who make financial decisions, declining a EHS budget request or delaying it until the next year is always the simplest option to take. Your goal and opportunity is to explain how the money they think they are saving by staying put could actually end up costing them significantly more in the long run.
For example, delaying the acquisition of new EHS software exposes your company to unnecessary risks. Without control and visibility into what’s going across your business, you cannot reduce expenses or prevent incidents. Not to mention that the time you waste fixing issues and submitting support tickets for out-of-date software could have been used for tasks of higher value.
It can be stressful to request a bigger EHS budget, but these suggestions will help you to negotiate with confidence.
Moreover, EHS software has enormous potential to increase performance for your business. CloudApper Safety specializes in EHS software for companies with large amounts of data. Utilities, pipelines, refineries, and other businesses are among our clients – contact us now to learn more. To organize a free demo with our solutions team, contact us now.