Gen-Y holds its own

Will the recession change the attitude of Gen-Ys? For the past few years, many employers have complained to SmartCompany about being held hostage by a demanding generation that changed jobs on a whim, had few responsibilities, were arrogant and over-confident, and preferred to dictate terms to their bosses rather than take orders.

The recession came along and everyone rubbed their hands. At last Gen-Y would get their comeuppance. Surely a few lessons from life would curb this uppity generation’s sense of entitlement, make them more circumspect and maybe prevent them hopping from one job to the next.

So has it? Probably not.

One youth marketing agency, Lifelounge Group, is about to release its annual Urban Market Report which looks at the attitudes of 3000 young adults (16 to 30). And it found that Gen-Y are changing – but not in the ways you might think.

The recession has only had a minor impact on their spending – down from $45 billion in a year to February 2008 to $42.4 billion by February 2009.

But get this. They are shifting their spending towards more alternative purchases such as buying products at farmers’ markets and vintage clothing stores.

So they are spending nearly as much, but on perceived cheaper purchases. Sportsgirl, quick to spot this trend, has come out with its own range of vintage clothing. Even more amusing, the young adults buying the vintage clothing are then buying other purchases to “update” the vintage clothing. Gotta love that.

Dion Appel, who runs LifeLounge, has even coined a phrase to describe the trend: Advintage.

Will they keep spending as the cold winds of the recession sweep in? Probably. Most live at home until 26 years old, so apart from HECS they are not paying off debt. Add to that the $900 stimulus package that they obediently went and spent (maybe the Government could tell them to clean their rooms) plus the first home buyer scheme, and you have a generation that still sees huge opportunities.

But while their confidence levels are high, some of their friends have been retrenched. The number of those who are employed full time has significantly decreased in the last 12 months, from 44.6% to 40.5%. 

This has made them more cautious about up and leaving their position. However if they are retrenched, they see this as an opportunity for a change. Appel says they head off overseas but are also supporting local travel, particularly areas affected by bush fires and floods. “They are conscious of putting money back in,” he says.

So while they know it is a tougher economy, they are very confident – it is the beginning of their working lives, times will improve, and so if they need to take a little time out travelling while the world gets itself back into shape, even better.

What’s more, those in employment have never had it better. They are now earning more, with 45.3% now earning over $50,000 compared to 35.7% in the previous 12 months. Are Gen-Ys being promoted as more expensive workers up the ranks are let go?

It could be. While there has been no change in the number of young adults researched being employed as professionals (29.7%) slightly more are employed as directors/managers (up to 7.8% from 6.9%.)

Overall this opportunistic generation are not that knocked by the recession. They are still spending, but want better value for money. Whereas they were very focused on fun, there is a growing focus on substance.

Will this make them better employees?

What do you think? Have you seen any change in Gen-Y attitudes or behaviour?