How to Get Promoted in a Recession

Several months ago, asking your manager for a raise may have gotten you an incredulous stare. But with the worst of the economic downturn seemingly behind us, today you may have a better chance.

Since the recession began in December 2007, 6.7 million workers have lost their jobs, according to the Department of Labor. Some economists project the unemployment rate, which stood at 9.4% in July, will reach double digits by 2010. But signs that the recession is over have started to spring up this summer, including good news on the housing front and a marked rebound of the stock market.

Still, the economy will take a while to heal completely, and those looking for work may find little improvement in the job market, especially if the country enters a period of “jobless recovery,” a trend typical of past recessions in which the labor market lags behind other measures of economic growth.

But if you’ve held onto your job through the recession, now may be the time to ask your manager for a promotion — assuming, of course, that you can prove you deserve one.

“Companies are so thinly staffed right now that any surge in their business puts pressure on them,” says John Challenger, the chief executive officer of outplacement firm Challenger, Gray & Christmas. “They need to keep their key people and that gives you more bargaining room than you had before.”

Here are eight tips that will help you prepare for that conversation.

Even if business is picking up, a 10% raise may not be a possibility in this year’s budget. In 2009, employers budgeted for the lowest base-salary increases in 33 years: 1.8%, down from 3.7% in each of the previous two years, according to a recent study by benefits consultant Hewitt Associates. “An employee thinking about a raise needs to be aware that there’s less money available,” says Ken Abosch, the compensation practice leader at Hewitt. “High performers are first in line. Companies are going to work harder to take care of who they think are their outstanding employees.”

“You do want to go see your boss after you’ve done something that really made an impact,” Challenger says. A good time to have the talk is after you’ve finished a project or results have come in that make your value to the organization clear. At many companies, management meets to make promotion decisions once or twice a year: Talk with your manager ahead of those meetings.