Paid Vs. Unpaid (For Credit) Interns?
I have been curious as to how different companies structure their internship programs. Do you use pay your interns, offer credit (unpaid), provide a stipend, etc?
Or do you use a combination of these compensation methods? If so, do specific business units/departments always use the same method?
Have you had better results with one method over another?
Any input is appreciated as I am constantly looking to improve SIRIUS XM's program.
Thanks in advance.
Answers (9)
Paid ia always better, because you get a better pool of applicants including those who can't afford unpaid internships because they have to work. Credit is not as much a motivation in DC anymore, because it's the learning and experience and networking that trumps credit, BUT if they are unpaid, being credit-worthy helps because then it can take the place of a class and allow time for other paid jobs. At AU, a student can be paid AND get credit - it is absolutely NOT a conflict of interest. And we have some employers that have some programs that pay and some that don't, because their budgets are decentralized.
But nothing beats pay!
I would agree that paid internships usually result in more go-getter candidates, but some unpaid ones depending on industry can produce excellent candidates as well. And of course, if you can offer credit that will help your candidate flow.
The bigger issue on paid vs. unpaid is more just the times, and the economy. I think in general, unpaid internships are becoming/should become a "thing of the past" with the exception of some non-profit work. Our organization is polling some of our students/interns and they are concerned about gas money and other expenses, and if the internship isn't paid (or even paid, but minimally), they will find better paying ones, or on-campus jobs instead. That is clear.
Our internships are all paid, - sually hourly - but occasionally with a semester stipend + monthly incentive plans depending on the type of internship. And we offer some student-specific benefits as well. We're in the Minneapolis/St. Paul and Duluth areas of Minnesota. Hope this helps.
Gino C
Recruiting Specialist at Nissan North America
Best Answers in: Staffing and Recruiting (7), Job Search (2), Ethics (2), Organizational Development (1)
I agree with the other respondents that paid is definitely a better way to go. Most companies with strong intern programs will offer a paid internship and will also work with the school to make sure the student gets some sort of credit for the work if their program requires and internship in order to graduate. The obvious immediate benefit with offering a paid internship is that you will have the cream of the crop applying to work for you, not just desperate students who couldn't find anything else. This might mean a little more work on the front end screening out who to bring on board, but compared to the alternative this is a good problem to have.
Offering paid internships also provides some benefits on a more ongoing basis as well, though. First and foremost, it gives you the opportunity to 'court' good interns and make them really fall in love with working for your company. Treating a student well during his or her internship will make them want to return for future internships and full-time employment upon graduation. This means you stand the chance to have better interns in the future, and can hire entry-level candidates that already have experience specific to your company!
Another benefit is that students talk with each other, and internships get to be a hot topic of conversation. If you offer better pay or incentives than your competitors you will find yourself in the enviable position of not needing to spend much time or money on recruiting interns because they will be coming to you.
Clarification added 3 months ago:
A brief point of clarification is that we pay our interns and offer to work with their schools to ensure they earn credit while working.
Paid internships allow students who support themselves, the opportunity to gain vital experience. On the same note, students who really want the experience may work unpaid internships. Some majors even require student's internships to be unpaid for them to count toward credit hours.
Ray M
Energy expert, educator, award winning sculptor
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Here at the University of Cincinnati we have a 100 year history of paid cooperative educational quarters or internships.
Unpaid internships are typically in businesses where just being able to put it on the resume and make the connections is worth it......like radio, TV, theatre, etc.
My suggestion is that Interns need to be paid the basic minimum salary prevelant in that country or industry. They should also be provided with all major facilites given to regular employees. This will create a sense of relationship with the employer and also could motivate the intern to stay longer with any organisation.
Shawn E
Senior Underwriting Associate at CIGNA Group Insurance
Best Answers in: Compensation and Benefits (2)
Having recently had a paid internship of my own, and a current girlfriend who just finished an unpaid internship, I can definitely say that the pool of candidates interested in the job will vary considerably based on the compensation model used.
While she is quite adept at media (what she interned for unpaid), most of the people who were her competition for the job were...less than competent, under even the most lax standards.
I also success varies by industry. I know a lot of broadcast radio media etc internships are for credit or unpaid, and I think students in those disciplines are more willing to bite the bullet.
In my opinion, if you can work out a credit arrangement AND offer a *small* stipend, you'll optimize the cost/benefit of your program.
Paid Interns. I do believe as a company that no one should work for free. I had that happen when teaching in college and hated it. So interns should always be paid.
The Department of Veterans Affairs has many paid Internships that can lead to Non-competitve appointments within the VA. The experts on them work in my office if you need more info.
