The Story:

Is the Australian Design Industry facing a skills shortage or are we oversupplying the industry with graduates? Or is there a communication gap in the communication industry with a lack of understanding between the boomers, the x’s and the y’s?

Leading industry experts estimate that the Australian communication design sector contributes as much as $7 billion to the national economy. There’s a realisation that this creative industry can be tapped into, and used towards the benefit of the country, not only domestically, but internationally too.

However, there is evidence we are in the midst of a skills shortage, with design studios finding it increasingly difficult to locate, employ and retain skilled creatives. In particular, many budding new designers are lost before they gain their first foothold in the industry. It’s predicted that of the 2000 design students who graduate this year, as many as 50% will struggle to find work, with many of them becoming disillusioned and ultimately lost to the industry.

At the same time, many studios are reluctant to hire new graduates. There’s the perception that they will invest time and money into training up new creatives, only to find that before too long they move on to a more desired place of employment.

The combined effect of disillusionment and distrust is extremely damaging to the design industry, and ultimately to the economy. A creative-rich environment is one that is more likely to achieve financial success, according to one American economist.

Three years ago, Pittsburgh-based economist Richard Florida came up with a unique way of measuring regional economic success, which he dubbed the “Bohemian Index” which revolves around the theory that economic success within any given area is largely dependant upon attracting and keeping a growing class of “creative workers”.

Florida’s estimates suggest that as much as 30% of the working population of the US belongs to this creative class. What’s more, they are mobile, and their movements and subsequent congregations tend to be an indicator of economic success. He argues that they are the engine-drivers of our economies and tend to be the most productive employees.

Typically, creative workers take a different approach to work – one that values enjoyment, flexibility and personal challenge over traditional focuses on long-term job security. They are looking for working environments that allow them to flourish – where the creative energies are high and cultural awareness and diversity is valued. They are prepared to take full advantage of their considerable employability in order to gravitate towards such employers, leaving those who don’t shape-up behind.

Florida suggests that these concentrations of creatives are the driving force behind innovation-based economies, and he has played an active role in advising city councils from New York to Memphis on civic policy, and how best to attract this workforce.

The next generation of recruits (the Y Generation) is less interested in traditional work values, and increasingly focused on achieving a work/personal life balance. Out of necessity our industry must work to meet other people’s deadlines. It’s for this reason that the design industry environment can sometimes seem unattractive to Generation Y recruits.

Those within the industry are beginning to feel the results of a real skills shortage emerging. This, coupled with the changing needs of the next work force, means we have to review our approach. It is time for the creative industry to prepare for the “Y” Generation.

Generation Y is usually defined as those born between 1980 and 1995 – these new workers are less motivated by money than previous generations because their focus is on personal fulfillment. They are not family driven, they are transient by nature, plus there are more females entering the workforce. Generation Y prioritises achieving quality of lifestyle, and isn’t necessarily focused on wealth.

This is a trend that is being felt internationally. Gone are the days of security in employment as employers are continually finding ways to reduce costs, in order to compete internationally. Many companies globally looking at countries like India, which has a surplus of 47 million workers who are willing to work cheaper.

Generation Y now understands that loyalty is something that is not necessarily reciprocated, and thus feel less inclined to offer theirs. They have less fear about moving on and finding new challenges or better workplaces – they are less loyal, but will respond well if working conditions meet their needs.

Generation Y work to live, and they expect to go straight into a role with plenty of responsibility, instead of being expected to initially pay their dues and prove their loyalty.
While the baby boomers still dominate today, and baby boomers are the exact opposite of Generation Y, we need to realise that times are changing. Design companies have to reevaluate their offerings or risk losing the battle for the minds of Generation Y.

The combined effect of disillusionment, distrust and changing expectations has the potential to be extremely damaging to the design industry, and ultimately to our economy. Attraction is one thing, retaining the creative class is another. As an industry we must look at the generational differences and understand the changing needs of the next generation work force.

Generation Y are the 4.5 million Australian’s born between 1978 and 1994, they’re restless, they're the 16-to-29-year-olds, and they're frustrated, ambitious, tech-savvy, impatient trend setters. They want wealth, jobs, power and they want it now. What's more, in this new outbreak of generational warfare, they've got the numbers. There are over four million of them just itching to take over the world. They have a mistrust of authority, media, government and organised religion. Unlike the gullible Boomer generation, they know that terrorism is the hoax and it’s global warming that is the threat. They know they will be left with a mess that they’ll have to clean up. They see Baby Boomers as tired, old, out of touch and it’s time they moved over.

Research has shown that the biggest divide facing our society is not a gender divide, racial divide, income or technology divide but it is the generational divide. For those of us involved in engaging young people it must be remembered that the gap between us and them is constantly growing: school students are always aged 5-18 but we are getting older, so we must work harder to understand them.
Why are young people so different to the other generations?

Age: Obviously the age or life-stage of this generation makes them unique to other cohorts. Being young they have different priorities to older generations. They generally have no financial commitments, thus over 70% of their income is spent arbitrarily, with the majority going on entertainment, travel, and food. They have different recreational pursuits to other generations with their top three spare time activities being: “go to a party” (74%); “listen to the radio” (74%); and “go to a movie” (72%). The point is that people operate in different ways because of their age. However, age is not the sole reason for generational behaviours otherwise teenagers today would be indistinguishable from teenagers of a generation ago. Yet this is clearly not the case, and it is because life-stage is just one of three broad factors that differentiate the generations.

Conditions: The current economic, social, and political conditions which we all live under actually further divide the generations. The same conditions act upon people of different ages in different ways. Take text messaging on mobile phones as an example: the technology is available to all, however 74% of messages are sent by Generation Y’s and so they are developing the new text language (eg “CU L8R” for “see you later”).

Experiences: Experiences that occur during the formative childhood and teenage years also create and define differences between the generations. These social markers create the paradigms through which the world is viewed and decisions are made. Baby Boomers were influenced by the advent of the TV, Rock and Roll, the Cold War, Vietnam War, the threat of nuclear war, and the decimal currency. Xers saw in the Personal Computer, AIDS, single parent families, the growth in multiculturalism, and the downsizing of companies.
Generation Y’s have lived through the age of the internet, cable television, globalisation, September 11, and environmentalism. Such shared experiences during one’s youth unite and shape a generation. There is an ancient saying that bears much truth: “People resemble their times more than they resemble their parents”.
What most influences Generation Y?

Peers: While the Builders’ Generation are most influenced by authority figures and Boomers make decisions based on data and facts, post-modern youth are more likely to make a decision based on the influence of their own peers. Our research has further confirmed that the biggest factor determining the choice a teenager will make is the experiences of their core group of three to eight friends. Rather than making independent decisions based on core values, they live in a culture encouraging them to embrace community values and to reach consensus.

Pragmatism: It is understandable that young people today are less idealistic than generations past due in part to the media and pop culture that fills their life. The most popular song of the 1940’s was Bing Crosby’s “White Christmas” (1942), for the 50’s it was “Rock around the Clock” (Bill Haley and his Comets, 1955), and the 60’s it was the Beatles’ “I want to hold your hand” (1963). A quick listen to the music of choice for Generation Y reveals what different times they live in. Much is made of the dark lyrics of Eminem and Marilyn Manson, but these are just public examples of the popular and pervasive genre. The influence of music is second only to the influence of TV and movies in Gen Y culture.

Australian teenagers are now spending more time watching TV today compared to four years ago, up from 2 hours 16 minutes per day to 2 hours and 20 minutes, a growth of 3.6%. In addition to the growing internet and video games use, they are now approaching 4 hours screen time per day.

At the same time Generation Y are increasingly worried by an array of factors from youth unemployment rates and increasing housing costs, to body image and crime rates. The result is that they have an increasingly short-term focus. Our research shows that their top life expectation is to complete their education (94%) with not too many plans after this.

Preference: For previous generations, the modernism mindset ruled and so people grew up believing that technology was good and to be trusted, medicine could overcome any problems humanity faced, and together we could create a great future.

However in these post-modern times, technology is often not trusted, let alone held up as the answer. AIDS and other pandemics continue to defy the experts, and the scientific method has given way to virtual reality. The concept of absolute and inherent truth has been banished as truth is deemed to be relative to one’s own background and understanding. The culture today asserts that any philosophy, religion, or practice is as valid as any other as long as it doesn’t hurt anyone else and it is tolerant of the beliefs of others.

What are their values?

By understanding what today’s youth most value, we can determine how to most effectively engage them. The core values of the Builders and Boomers generations included solid values such as a strong work ethic, respect for authority, loyalty and commitment, financial conservatism, long-term planning, and delayed gratification. Of course many chose to reject these values however they were still culturally dominant.

The values in vogue today are drastically different:
Relational

Connection: Gen Y is seeking more than just friendships.

They want community: to be understood, accepted, respected, and included. Research shows that while they spend most of their spare time with their peers, they often fail to experience real unconditional love, and connection when with them. Above all else, Australian teens wish for “a happy relationship” and “a loving family”. A stereotype is that this generation has no loyalty however they do demonstrate strong loyalty to their friends. They work hard to live up to what their peers expect of them, and their self-esteem often rests on how well regarded they are in their group or sub-culture.

Bigger Meaning: This generation has observed their parents get the rewards of hard work: houses, cars, and material wealth. Gen Y has benefited from this being the most materially endowed, and entertained generation of teenagers ever. Yet they have seen the costs of their parents’ success in terms of broken marriages, absentee parenting, and an epidemic of stress related illnesses. For their part Gen Y have been left disillusioned with the materialism they have enjoyed and boredom remains a big problem for them (57% state that “never being bored” is of highest importance to the mix).

Therefore they are looking for more than just continuing the consumerism experiment. Indeed when deciding to accept a job, salary ranks sixth in order of importance after training, management style, work flexibility, staff activities, and non-financial rewards. The young people of this generation do not live to work- but rather they work to live. A job merely provides the income to do what they want to do. They are on a search for fun, for quality friendships, for a fulfilling purpose, and for spiritual meaning (1 in 3 claim to regularly take part in a religious service of some sort). There are more voices than ever trying to win over a cause-seeking generation. Whether it is environmentalism, social issues, human rights, or volunteering, young people are getting increasingly involved.

Trusted Guidance: Our research shows that the third strongest felt need Australian teenagers have is for guidance or direction in their life that is trustworthy. There is much advice on offer but not much of it is believed by this sceptical generation, and rightly so. By the age of 18, the average young person has viewed over 500,000 TV commercials, in addition to countless Internet, radio, and outdoor ads, much of which is pure hype. Like the sign outside the Pharmacist reading “Ears pierced, while you wait”, or the supermarket aisle sign “Stock up and save. Limit of 1 per customer”, this generation is hammered with hype and has the hype radar up screening out most messages. However if our client has a message worth delivering, and they are authentic in their motives and style, it is possible to have a great impact. This generation wants guidance in the form of a navigator, not a street directory.

Our society is full of proverbial street directories, which show the way to financial, relationship, or life success. However most Gen Y’s are unsure of where they are now, let alone where they are going, and so they are seeking specific direction from someone who knows them, their situation, and has even traveled that way themselves. They are looking for real life role models and mentors who not only know the way, but also go the way, and can show the way.


How can we better communicate with them?

The traditional talk and chalk won’t work with this generation. Our communication style is structured, yet they want freedom. We stress learning, they like experiencing. We react, they relate. We focus on the individual, while they are socially driven. Here are four essentials to consider when engaging with youth today:

Real: Not only must our communication style be credible, but we must be also. They don’t expect us to know all about their lifestyle, nor do they want us to embrace their culture. They are simply seeking understanding, and respect. If our communication has a hidden agenda, or we are less than transparent, it will be seen. This generation can sniff a phoney from a long distance.

Raw: Today’s youth have access to the most advanced technology, movie special effects, and video games with which we can never compete. But the good news is that they are not impacted by slick presentations. They don’t want a rehearsed talk, or a manufactured spiel. The more spontaneous and interactive we are in the classroom, the less intimidated, and more open they will be.

Relevant: Obviously what we are communicating has to fall within their area of interest. But the style, as well as the content of our message must be relevant to a generation who are visually educated and entertained. There is no point in giving music to a friend on a cassette tape if they only have a CD player, or on CD if they only use MP3. Similarly we must research in the most appropriate format for those we are reaching. So in understanding the communication styles of our target cohort we will be better equipped to reach them.

Relational: There is an old and true saying in education circles: “They don’t care how much you know until they know how much you care!” Communicating to this generation requires openness, vulnerability, and genuine interest in those we are trying to teach, and above all else, understanding. The more relaxed the environment, and the more socially conducive to discussions; the better will be the quality of the learning.
Whether we are involved in education, in a leadership role as an employer or boss, or for that matter a recruiter, a quality outcome is dependent on our understanding of the Y generation workforce. Once we have a foundational grasp of their characteristics, communication styles, and social attitudes, we will be well equipped to effectively impact this enormous and emerging generation.

What we really need now is to better understand the ways in which workers form these different generations interact with one another. Important differences may exist, for example, between the way in which the baby boomers and Generation Y perceive key HR-related concepts such as management.

Generation Y: can prove difficult to manage, they are also extremely innovative and passionate. They are also sceptical and impatient.
While the baby boomers still dominate today, and baby boomers are the exact opposite of Generation Y, we need to realise that times are changing. Design companies have to reevaluate their offerings or risk losing the battle for the minds of Generation Y.

A good idea is to give new employees responsibility at an earlier stage in their career, and make sure you allow for a good work/life balance. Finding skilled Gen-Y workers may become increasingly difficult if fewer students take up design courses.

Richard Henderson, Director of brand identity company R-co, says that Australia needs to aspire to more innovation and leadership in design to hold people in the design industry and in Australia.

Richard attended a Budget briefing with the Victorian treasurer who allocated $15 million for the design industry in the budget - "that’s a trend I would encourage,” he says. “The contribution of the industry is significant. If we don’t invest in it now we’re going to be in serious trouble in a couple of decades.”
He says it’s absolutely fundamental to support young designers. “I try and meet everyone who contacts me and see his or her folio,” he says. “I give a scholarship every year to a student from Monash University to work here for three-months on a full-salary.”

The Creative Panel" made up of some of Melbourne's leading creative movers and shakers will discuss “Graduate oversupply or skills shortage?"

This "hot potato" topic is one that needs to be addressed; "Connections -The Creative Panel" will ask some navel gazing questions.

Photo’s click here.