Lana Oconnell
Internships are a great way for students to gain practical experience and build their professional networks. However, the question of whether interns should be paid or not has been a topic of debate. While some internships are paid and provide financial remuneration, others are unpaid and offer only industry exposure and academic credit. Unpaid internships are common, especially in non-profit organisations, journalism, and the arts, whereas paid internships are more common in finance, technology, and engineering. The pay rate for interns also varies depending on the industry, company size, and location. Legal guidelines governing unpaid internships ensure that interns are not exploited and that the experience is primarily educational, with interns being the primary beneficiary. Despite this, some interns have successfully sued for back pay, arguing that their work primarily benefited the employer.
| Characteristics | Values |
|---|---|
| Prevalence of unpaid internships | 46% of college-student internships are unpaid |
| Reasons for unpaid internships | Companies may have a tight budget, competitors hire unpaid interns, or the intern is the "primary beneficiary" of the agreement |
| Reasons for paid internships | Cultivating a good company image, ensuring equality, and complying with federal law |
| Average wage for interns | $22.06 per hour or minimum wage in the employer's state |
| Legality of unpaid internships | Legal in the US, but with conditions; illegal in Ireland unless they're a mandatory part of learning |
| Perks of unpaid internships | More flexibility with schedules, less competition |
| Perks of paid internships | Financial benefits, additional perks like housing stipends, higher chance of conversion to full-time employees, and more equality |
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What You'll Learn
Unpaid internships are common, but are they legal?
Unpaid internships are common, especially in certain industries like legal and finance. A study found that 46% of college-student internships are unpaid. However, the tide is turning against this practice, with several high-profile lawsuits where interns have successfully argued that they should have been paid. Many people believe that unpaid internships should be illegal, as they are unfair and exploitative, perpetuating a growing class problem. For example, students from underprivileged backgrounds may not be able to afford to take an unpaid internship, and statistics show that more women than men work unpaid internships, meaning the gender pay gap starts even before graduation.
There are several arguments for and against unpaid internships. In favour of unpaid internships, it could be argued that interns are gaining valuable connections and industry experience, which will help them find a job in the future. Indeed, one source suggests that college students who had internships are 15% less likely to be unemployed in the years after graduating college than those who didn't. However, this is contradicted by a study by the National Association of Colleges (NACE), which found that students who took unpaid internships were more likely to be seeking employment six months after graduation than those who took paid internships.
Another argument in favour of unpaid internships is that they provide businesses with a cost-effective way to find temporary employees. However, this argument assumes that interns are treated as employees and given meaningful work to do. In reality, interns are often given menial tasks like making coffee and photocopying documents, which provides them with little in the way of valuable experience.
On the other hand, there are several good reasons to pay interns. Firstly, it is the right thing to do, as interns are providing labour and should be compensated fairly for their work. Secondly, paying interns can help to cultivate a reputation as a good company to work for, as interns will spread the word that the company values its employees. Finally, there is a legal argument for paying interns. According to the US Department of Labor, all employees at for-profit businesses must be paid, and many interns may fit the Department's definition of an employee.
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The benefits of paid internships
Paying interns is beneficial for both the intern and the company offering the internship. Paid internships are highly sought after, as they provide financial compensation while allowing interns to gain work experience in their chosen fields.
Benefits for interns
Paid internships allow students to put the knowledge and competencies learned in college into practice. They can help students gain practical experience, enhance their skill set, and bridge the gap between academics and real-world application. Interns can learn professional etiquette and workplace norms, helping them transition smoothly from college to the professional world. They can hone skills such as time management, professional communication, and workplace collaboration. Paid internships can also help students offset tuition costs and reduce student debt. The experience gained can also boost a student's confidence.
Furthermore, paid internships can provide a competitive edge in the job market and help students make informed career decisions. They can gain insight into the daily operations and challenges of their chosen industry, equipping them with valuable experience. Paid internships also result in more job offers before graduation compared to unpaid internships or no internship experience at all. College students who complete paid internships receive nearly twice as many job offers as students with no internship experience.
Benefits for companies
Paid internships also offer key advantages for employers. They satisfy federal regulations and allow employers to give interns real work and a more hands-on experience to gauge their performance in a potential position or department. By paying interns, employers can create a more inclusive program, attracting talent from diverse backgrounds, rather than just students who can afford to work unpaid. This helps build a pipeline of diverse talent.
Paid internships are also a great return on investment for companies. They can train and test potential new hires for critical skills, and secure the talent they need to fill their entry-level positions. According to NACE research, companies offer 72% of their interns full-time employment, with nearly 80% of interns accepting. This means that companies can convert nearly 58% of their interns into full-time employees.
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The value of unpaid internships
Unpaid internships are common, with one study finding that 46% of college student internships are unpaid. While they are controversial and raise ethical concerns, they may offer some benefits to interns.
Unpaid internships can provide valuable real-world experience for students and expose them to professional networks, which may present valuable connections in the future. They can also help interns confirm or reject their interest in a particular career. For employers, internships are a valuable source of low-cost labour and can be used as a recruiting tool to assess interns for potential full-time positions. Academic institutions also benefit from internship programs.
However, unpaid internships are less likely to lead to job offers compared to paid internships. They may also lack legal protection and have been shown to correlate with a longer search for employment, negatively impacting employment outcomes and student salaries. Unpaid internships can perpetuate socioeconomic and racial inequalities, as only those from privileged backgrounds may be able to afford to work without pay. This can contribute to a lack of diversity and inclusion in various industries.
Overall, while unpaid internships may provide some value in terms of experience and networking, they also present disadvantages and ethical concerns that should be carefully considered. Paying interns is a way to cultivate a reputation as a good company and signal that the organisation values its employees.
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Industries that offer paid internships
While unpaid internships are common, with one study finding that 46% of college student internships are unpaid, there are several reasons why paying interns is beneficial for companies. Paid internships can help cultivate a reputation as a good company to work for, and they can also help promote equality, as unpaid internships may disproportionately affect students from underprivileged backgrounds, first-generation college students, and students of colour. Additionally, paying interns can help avoid legal issues, as there have been lawsuits where unpaid interns successfully argued that they should have been paid.
There are several industries that offer paid internships. For example, in Kenya, companies such as Kenya Airways, Equity Bank, Kenya Power, IBM Kenya, Britam, Safaricom, Nation Media Group, KPMG, Centum Investments, PwC Kenya, and Deloitte East Africa offer paid internships. These internships provide valuable opportunities for graduates and young professionals to gain experience and exposure to various industries, including aviation, banking, finance, electrical engineering, software development, media and communication, accounting, advisory services, and more.
In the United States, internships in the tech industry are often paid, typically ranging from 50-75% of a graduate salary. Paid internships are also commonly found in STEM fields and are sometimes required as part of college courses. Additionally, companies like Amazon are known to offer paid internships, with wages ranging from $20,000 to $30,000.
While the specific industries offering paid internships may vary based on location and other factors, it is worth noting that the trend towards paid internships is growing. Companies are increasingly recognising the value of investing in interns and providing fair compensation. This shift is influenced by factors such as federal laws, changing social values, and the understanding that interns can contribute valuable work that deserves remuneration.
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How to secure a paid internship
While internships are often unpaid, it is becoming increasingly common for companies to pay their interns. Paying interns helps cultivate a reputation as a good company to work for, and it is the right thing to do. Unpaid internships can also be illegal, with several high-profile lawsuits where interns have successfully argued that they should have been paid.
- Clean up your social media presence: Make sure your social media pages are free of any inappropriate content. At the same time, keep your professional social media page up to date with all relevant job and educational information, as well as a recent photograph. This shows that you are serious about advancing your career.
- Research your dream organisations: Find several companies where you would love to work and that have open internship opportunities. If you are lucky enough to secure an interview, make sure you do your homework and research the company thoroughly. Employers will not be impressed if you only have basic knowledge of the organisation.
- Practice your interviewing skills: Interviewing for an internship is just like interviewing for a job, so make sure you practice beforehand. Most career centres offer mock interview practices, or you can practice with a friend or professional connection in your desired industry.
- Follow up after the interview: Reach out to the prospective employer soon after the interview to thank them for their time. This is often appreciated by employers, and it may increase your chances of being selected.
- Be patient: Securing an internship can be a long process with many highs and lows. Don't give up at the first hurdle – hard work and patience are key to success.
- Stand out from the crowd: You will likely be facing tough competition for internships, so take steps to make yourself stand out. This could include gaining relevant work experience or developing sought-after skills.
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Frequently asked questions
It depends on the company and the industry. Some companies offer paid internships, while others do not. Paid internships are more common in industries such as finance, technology, and engineering, whereas internships in non-profit organizations, journalism, and the arts may be unpaid.
Paid internships provide financial remuneration for the work performed, which can be helpful for students who need to save money for higher education. Paid internships may also come with additional benefits such as housing stipends, travel reimbursements, and networking opportunities.
Unpaid internships can provide valuable work experience and exposure to an industry, allowing interns to build professional networks and gain academic credit. Unpaid internships also tend to be more flexible with scheduling and may be easier to get accepted for.
Unpaid internships are legal in certain circumstances, usually when the intern is the primary beneficiary of the experience. However, there are strict legal guidelines in many countries to ensure interns are not exploited, and interns performing tasks that benefit the employer more than themselves may be entitled to back pay.
Internship pay rates can vary widely depending on the industry, company size, and geographic location. In 2023, the average wage for an intern at the bachelor's degree level was $22.06 per hour, and many interns are paid the minimum wage in their employer's state. Tech internships are typically paid between 50-75% of a graduate salary, pro-rated.
