by Mark Hunter Generation Y has had to grow up fast. With their career options shrinking, the bright young graduates who a few years ago burst on to the jobs market with their technological nous and demands for more flexible working, have taken a recession-shaped reality check.

They are also becoming disillusioned with work. A survey of 24,500 graduates by Graduate Prospects and the Association of Graduate Recruiters found that one in three felt let down by their employers, with their opinions ignored and their passion for innovation stifled.

According to Dr Carina Paine Schofield, a research fellow at Ashridge Business School, many Generation Y graduates are poorly prepared for the commercial world.
“Gen Y require continuous support,” she says. “That outwardly confident young person actually wants guidance and the annual performance review is not enough. Ongoing critique and feedback is essential.”

Areas where young people struggle include corporate politics, working with others, emotional intelligence, decision-making, corporate processes and personal development.

Dr Paine Schofield’s research supports some stereotypes about Generation Y — they are friendly, adaptable and prefer self-fulfilment to job titles and kudos. But she has also busted a few myths. “Don’t assume they are all IT wizards or that they are all incompetent at written English,” she says. “There is great variation.”

Simon Walker, director of the management consultants Talentsmoothie, says that the most successful companies strive for “generational diversity” that allows employees of any age to play to their strengths. “Ten years ago we were teaching 30-year-old managers how to use the internet,” he says.

“Now we are telling twentysomethings that if you walk up that corridor and open that door you’ll find a 55-year-old guy who is a font of information that you just can’t Google.”

With jobs increasingly scarce, many graduates are choosing to return to education. But rather than riding out the recession in academia, they should consider agency work or temporary positions to gain experience and keep their skills fresh, says Matthew Saunders, chief executive of de Poel, the recruitment consultant.

“Their flexibility and enthusiasm to try new things makes them well placed for temporary labour positions,” he says. “This is a benefit to both parties — it helps graduates to broaden their skills and knowledge base while keeping labour costs down.”

Emma Reynolds, 26, co-founder of the research company Ask Gen Y, remains bullish about young professionals’ ability to ride out the difficult economic climate. “For us change is the status quo,” she says. But even she admits there has been a shift in the corporate power balance.

“Five years ago it was a candidate-driven market but now employers feel they are back in the driving seat. Unfortunately this means a lot are falling back into the old 20th century ways of working.

Companies are still using very one-dimensional assessments based around the candidate's CV. Sure they may have a Facebook page, but once you dig deeper you find that it’s a pretty tokenistic effort.”