Understanding the Next Generation is Vital to Overcoming Skills Shortage

MEA’S Workplace Skills report uncovered what we all suspected. The industry needs more skilled workers and the shortage is impacting growth. Survey data collected over three years and analysed by McCrindle was
released at MEA’s Industry Leaders’ Breakfast held in February at AIME. Attendees heard what it is going take to attract and retain staff in future.

Despite 89% of organisations surveyed offering flexible working conditions which featured highly on desirability, and an impressive average tenure of 5 years, there was a disturbing increase from 22% to 40% of shortages being experienced in mid-level event management. The next highest shortage was in senior level management. Conversely, shortages in operations and line staff had dropped around 12% from 2017 to 2019. Positions are taking longer to be filled, with nearly two-thirds of surveyed organisations currently looking for staff, and 52% taking from one to two months to fill positions.

What's causing the problem? It appears the major issue is simply a lack of skilled workers, followed by remuneration expectations and lack of work/life balance.

What can be done? MEA is already addressing the training aspects with its comprehensive education program. Further expansion of training options may be needed and the MEA Board, is considering this, among other measures. The idea of MEA introducing a "freelancer" register to help fill vacancies was raised in the survey. This concept was felt to be of value to 39% of respondents and a further 42% indicated maybe this could help. MEA already offers an online jobs directory.

"This is the first study into the workplace and skills of this Australian industry. It has been extremely valuable to MEA as we ensure programs are in place to develop the right skills for the industry. Over the coming months MEA will be launching a new education program and an initiative designed to attract more young people to the industry. The research also provides MEA with a platform to advocate for incentives for our members as they invest in developing the skills which will benefit the sector and ensure a sustainable future," said Robyn Johnson

A key area of concern was the need to attract young talent into the industry. Why aren’t more young people interested in a career in business events? Respondents believed it was mainly a combination of a lack of understanding of the industry,
poor pay and unrealistic expectations. There is obviously work needed in this area, probably from school leavers up.

Yet over the past two decades there has been an explosion in tertiary training offered in the events sector so maybe more research is needed to find out why these graduates aren’t filling the gaps.

If the main shortages are at the middle and senior management roles, perhaps older more experienced industry professionals need to be encouraged to re-enter the workforce. Much has been reported in the general media recently about ageism in the workforce. Is the events industry guilty of this syndrome?

A report by the Australian HR Institute Employing Older Workers stated:
“A sizable minority of around a third of the sample (30 per cent) indicate that their organisation sets an age over which they are reluctant to recruit workers. Somewhat more disquieting is that nearly seven out of ten of that cohort (68 per cent) see 50 years
of age or older as the age at which they are unwilling to recruit workers….. The data also shows that around two-thirds of respondents (63 per cent) report a loss of knowledge and key skills with the departure of older workers, only a quarter (26 per cent)
report efforts made to capture their knowledge before they exit.”

Regardless of ageism issues, obviously the events industry needs to attract young people to ensure its own future in what is a people-intensive sector. Well trained personnel across every level are vital to the delivery of successful events.

The collision of many factors points towards a whole new ball game.

The event industry can take some comfort that the industry is not alone trying to attract talented young professionals. It is a widespread problem impacting other sectors in presenter Ashley Fell’s view.

Understanding Generation Z (born 1995-2009) is an essential starting point if industry employers are going to win the hearts and minds of this age group.

Fell provided attendees with a glimpse into the “Z” world, drawing on McCrindle’s whitepaper on the Z Generation*, while highlighting the importance of generational diversity.

Key takeaways for employers on generational diversity taken from the McCrindle Report:

Greater focus is required to effectively attract and recruit young people who, relative to the total population, are less numerous. Dedicated campaigns specifically targeting the interests and attitudes of this unique cohort can bring about more effective outcomes.

Just focussing on Gen Z, however, won’t solve the problem. Australians are living longer and working later into their life. In an ageing population, accommodating an older workforce by setting up the right flexibility and Workplace Health & Safety
requirements is an essential part of the strategy.
Age is just a number today. In the workplace it’s not about age or life stage but one’s mindset and understanding that what matters. Our study showed, while three in ten (29%) workers aged under 24 prefer working with colleagues of a similar age, two in five (40%) believe a mix of different ages is better. For almost a third (32%) age doesn’t matter at all. Therefore, it is important to create a culture where interaction can take place, where those of different ages can mix and thus where intergenerational perspectives are shared.

Generational gaps need to be bridged from both sides. Baby Boomers and Xers must better understand and engage with the emerging generations. In the same way it is imperative that Gen Z are facilitated to better connect with older staff and customers. This is particularly the case with younger leaders managing teams comprising older workers.” "Z" Gen are looking for CPI in jobs according to McCrindle.

• Culture - a combo of training, job content, leadership role models, work/life integration and aligned values.
• Purpose - a compelling reason to stay in the job. Nowadays the employee interviews the employer!
• Impact - celebrating results and milestones at work, helping to prevent burnout

Think authenticity and integrity, staying current and responsive to change, and recognition of the need to belong. Think also more visuals and infographics and less spreadsheets.

Gen Z are twice as likely to have a degree as Gen X, with every chance they will have a double degree.

Highly digital in this screen age, their three greatest fears are bad wifi, slow download and low battery. McCrindle quotes Sigman claiming 1997 as the date when hours of screen time overtook face to face interaction. Even baby boomers can relate to this nowadays, but by 2030 the ubiquitous Boomers will no longer be relevant in the workplace. OK Gen X? Just when you have familiarised yourself with Gen Z, and before you suffer from generational change fatigue, Fell says you need to start thinking about the “Alpha” generation, now under 11years but the next on our radar as future event professionals.

Tips From Industry

MEA’s Forum included three industry panellists who shared their tips on attracting and retaining young staff.

Brand. Importance of a strong organisation brand to attract talent. MCEC believes its strong brand and culture is vital in attracting the “best of the best”.
Flexibility. For example, a nine day fortnight or work from home where possible. “Maybe it suits an employee to go to gym in middle of day”, said Darren Waite, encouraging mutually agreeable solutions.

Empowerment. Minimise hierarchical structure and maximise empowerment. “Don’t be afraid to show vulnerability and ask for help with solutions”, MCEC’s Waite urged senior executives.

Word of mouth. When staff move MCEC conducts exit interviews which can strengthen brand and word of mouth recommendations. Encore’s Michael Magafa agreed: “today’s ex-staffer can become tomorrow’s client or partner in this industry where people are always popping up somewhere else.”

Training. Invest heavily in training and progression. “I’d rather spend $3K on training than $3K on new recruitment” said Taryn Trajceski, Crowne Plaza Hunter Valley, adding “10 of our 17 strong M&E team, have grown internally, and nine are on flexible arrangements”

Inspire. Staff across the company are more motivated and connected when they understand the event objective and their part in the delivery.
Overcoming regional challenges.
Crowne Plaza Hunter Valley has used an iPhone to shoot some clips which show the passion of their head chef and used on social media. The hotel has not had to recruit more chefs as a result for over 14 months. The property has also done a series of 30 second clips of staff members showing the joy of delivering to guests.

Understand your team. What’s important to them is what drives them.

The Workplace Skills: Skilling in the Events Industry report is available for download here. MEA acknowledges the collaboration of AACB and EEAA in the collection of data for this longitudinal study.

*For those wishing to delve deeper into Generation Z, a free McCrindle whitepaper Recruiting, Training and Leading the Next Generation is available here. It contains some excellent key pointers for employers.