Ibrahim Gardner
Internships are a great way for students to gain practical experience and build their professional network. However, one of the most important questions that arise when considering an internship is whether or not it is a paid position. Paid internships offer financial benefits and often include additional perks, such as housing stipends and travel reimbursements. On the other hand, unpaid internships can provide valuable industry exposure and networking opportunities, but they may require interns to juggle academic responsibilities and part-time jobs to make ends meet. The decision to accept a paid or unpaid internship depends on various factors, including flexibility, competition, job prospects, and the legal landscape governing internships.
| Characteristics | Values |
|---|---|
| Paid or Unpaid | In the US, interns may not be considered "employees" under the FLSA, in which case they are not entitled to minimum wage or overtime pay. However, some companies do pay interns, with hourly wages ranging from $15.67 to $20.76. |
| Work Hours | Unpaid interns in federally regulated industries or workplaces in Canada have the same standard hours as employees, but they cannot exceed these hours. Paid interns may work up to 40 hours per week. |
| Benefits | There is no legal requirement to provide benefits to unpaid interns. However, some employers offer benefits to paid interns, such as health insurance and PTO. |
| Eligibility | Requirements vary by company and country. For example, the US Department of State requires interns to be US citizens and to have a certain GPA. |
| Learning Opportunities | Unpaid internships may provide more opportunities for learning and growth without the same expectations as a paid role. However, legally, unpaid interns cannot work on real projects that benefit the employer. |
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What You'll Learn
Unpaid internships are common, but are they legal?
In Canada, the situation is slightly different. The Canada Labour Code does not mandate remuneration for student interns, and their activities are not considered work. However, employers may voluntarily provide monetary compensation unrelated to the intern's tasks. International students can be considered student interns, entitled to specific labour standard protections despite being unpaid, as long as they meet the required conditions.
While unpaid internships are prevalent, there is ongoing debate about their legality and ethical implications. Proponents of unpaid internships argue that they provide valuable connections, industry experience, and a foot in the door for young people starting their careers. Additionally, opponents of unpaid internships assert that they perpetuate a growing class problem, favouring those who can afford to work without pay. They further argue that interns are often treated as a source of cheap or free labour, performing menial tasks that offer little to no educational value.
The legality of unpaid internships hinges on the specific circumstances and regional regulations. While some regions may not explicitly require remuneration for student interns, it is essential to refer to local labour laws and guidelines to ensure compliance. Additionally, organisations offering internships should design meaningful programmes that provide genuine learning opportunities, aligning with the primary purpose of internships: to gain knowledge and experience.
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The pros and cons of paid vs. unpaid internships
Whether an internship is paid or unpaid depends on the nature of the work, the industry, and the country. For example, in the US, the Fair Labor Standards Act (FLSA) requires "for-profit" employers to pay employees for their work, but interns and students may not be considered "employees" and therefore may not be entitled to compensation. In Canada, the Canada Labour Code does not require student interns to be paid, and their activities are not considered work.
There are pros and cons to both paid and unpaid internships. Here are some points to consider:
Paid internships
Pros
- You get paid: On average, an intern can earn between $15.67 and $19.51 per hour, which can be a significant financial boost, especially when juggling tuition fees, rent, and other expenses.
- Higher likelihood of a job offer: Paid internships often come with more responsibility and complexity, which can lead to a higher chance of being offered a job upon completion. According to U.S. News, 65.4% of paid interns were offered jobs, compared to only 38% of unpaid interns.
- Credibility: When a company compensates you for your contributions, it signals to future employers that you possess valuable skills, which can open doors to job opportunities.
Cons
- Competition is fierce: Paid internships are often highly competitive, with companies seeking interns who already possess a certain level of expertise or experience.
- Limited positions: Paid internships may be limited, especially in highly competitive industries or niche fields.
Unpaid internships
Pros
- Attainability: Unpaid internships may be more attainable for those without relevant experience, as they may have less stringent requirements.
- Low-risk environment: Unpaid internships can provide a safe space to learn and grow without the same expectations as a paid role.
- Unique experiences: Unpaid internships, especially in niche fields or abroad, can offer unique experiences and networking opportunities that may outweigh financial concerns.
Cons
- Lack of financial compensation: Unpaid internships may not be feasible for those with tight finances, as there may be no income to cover living expenses, transportation, or relocation costs.
- Less responsibility: Companies may be less invested in your development and may not provide the same level of challenging tasks or opportunities to showcase your abilities.
- No guarantee of employment: While the experience can be valuable, there is no assurance of a job offer at the end of an unpaid internship.
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Industries that offer paid internships
Paid internships are a great way for students and graduates to gain valuable experience and insights into their chosen industry. While opinions vary on whether internships should be paid or unpaid, many companies across various sectors offer paid internships. Here are some industries that provide paid internships:
- Finance and Banking: Equity Bank, Deloitte, KPMG, and PwC offer paid internships for students and graduates interested in finance, accounting, and business advisory services. These internships provide valuable mentorship and hands-on training, equipping interns with skills in financial analysis and a better understanding of the financial industry.
- Technology and Software: Tech giants like IBM, Contrast Security, Dell Technologies, and American Express provide paid internships for tech-savvy graduates and young professionals. These internships focus on software development, cybersecurity, and innovative solutions, allowing interns to experience the dynamic world of technology and its impact on various sectors.
- Media and Communications: Media companies, such as Nation Media Group, offer paid internships to introduce young journalists, designers, and enthusiasts to the fast-paced world of media. Interns gain hands-on experience in journalism, design, and communication, preparing them for careers in these fields.
- Aviation and Engineering: Kenya Airways offers paid internships for aviation enthusiasts, providing insights into customer service, aviation operations, and the flying business. Meanwhile, Kenya Power caters to students interested in electrical engineering, energy management, and utility services, offering them a chance to contribute to Kenya's sustainable energy solutions.
- Insurance and Investments: Companies like Britam and Centum Investments provide paid internships for interns pursuing careers in insurance, investments, and financial planning. These internships offer valuable insights into investment strategies and financial services, helping interns navigate the complex economic landscape.
- Federal Government: Students interested in federal government internships can explore prestigious opportunities through USAJobs, the official portal for federal internships. Agencies like the Department of Defense, NASA, and the U.S. Attorney's Office offer internships that can lead to full-time government roles.
These industries, among others, recognize the value of providing paid internships to nurture young talent and offer them a stepping stone towards successful careers.
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The average pay rate for interns
Whether or not a student intern gets paid depends on several factors, including the country and industry in which they are working, as well as their employment status. For example, in Canada, student interns are not considered employees, and the Canada Labour Code does not require that they be paid. However, in the United States, interns may be classified as employees and thus entitled to minimum wage and overtime pay under the Fair Labor Standards Act (FLSA).
The highest-paid internships are typically found in finance, tech, and consulting industries, and national or international corporations tend to pay higher salaries than local businesses. Additionally, interns working in metropolitan areas generally earn more than those in rural locations.
It is worth noting that some internships may be unpaid, especially if they are part of an educational program. However, even in these cases, interns may be able to negotiate compensation or receive other benefits, such as valuable work experience, networking opportunities, or course credits.
Overall, while the average pay rate for interns in the United States is around $30-65,000 per year, the specific amount can vary widely depending on various factors, and some internships may be unpaid.
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How to secure a paid internship
Whether or not a student intern gets paid depends on the employer and the country in which the internship is located. For example, in the US, the Fair Labor Standards Act (FLSA) requires "for-profit" employers to pay employees for their work, but interns and students may not be considered employees and therefore may not be entitled to compensation. In Canada, student interns are not considered employees and are not required to be paid under the Canada Labour Code.
Despite this, there are still ways to secure a paid internship. Here are some tips:
- Research organizations and companies: Find several companies with open internship opportunities and that you would be interested in working for. If you secure an interview, take the time to research the company thoroughly. Employers will be looking for candidates who demonstrate a good understanding of the organization.
- Keep your social media clean and professional: Ensure that your social media pages are free of any inappropriate content or comments. 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 indicates that you are serious about advancing your career.
- Practice your interviewing skills: You can practice with a friend or, better yet, with a professional connection in your desired industry. Many career centers also offer mock interview practice, so take advantage of these opportunities to prepare for your interviews.
- Follow up after the interview: Reach out to the prospective employer soon after the interview to thank them for their time. This is a thoughtful gesture that employers appreciate, and it can leave a positive impression. Send your note or email as soon as possible after the interview while you are still fresh in the employer's memory.
- Be patient: Securing an internship can be a challenging process with many highs and lows. It's important to stay patient and persistent in your search, as hard work and patience are key to success.
- Ask about the possibility of transitioning to a paying job: If you have already secured an unpaid internship, find out if there is a possibility of turning it into a paid position. Schedule a meeting with your boss or the human resources department to discuss the procedure for transitioning to a paying job. Do this well before your internship ends so that you have time to make any necessary arrangements.
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Frequently asked questions
It depends on the company and the country. In Canada, the Canada Labour Code does not require student interns to be paid, but some companies in other countries may pay interns an hourly wage, weekly or monthly stipend, or salary.
Unpaid internships can provide a low-risk environment for students to learn about a job and industry without the same expectations as a paid role. They may also be able to gain college credits and work experience at the same time. However, some people argue that unpaid internships are a waste of time and do not provide real, time-worthy experience.
Paid internships can attract top talent and increase motivation among interns. They are also more likely to be sought after by students and recent graduates.
The U.S. Department of State offers a paid Student Internship Program for U.S. citizens who are undergraduate or graduate students.
