Paid vs Unpaid Internship Opportunities

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2nd webinar (July 15, 2010) - Interns 201: Thinking Outside of the Box. Session one of the webinar: paid versus unpaid internships. Information covers the who, what, when and how of unpaid internship …

2nd webinar (July 15, 2010) - Interns 201: Thinking Outside of the Box. Session one of the webinar: paid versus unpaid internships. Information covers the who, what, when and how of unpaid internship programs.

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  • 1. Interns 201 Thinking Outside of the Box
  • 2. Welcome to the webinar
    • 2 nd in our series of monthly webinars
    • Hosted by InternInMichigan.com and InternMatch.com
    • Each webinar will be divided into two sections
    • Your feedback will be solicited for later use
  • 3. Housekeeping for the Webinar
    • Let us know if you can hear us
    • Use the dialogue boxes to ask questions or comments
    • Questions will be answered between sections
    • Links to view the slides will be distributed after the session
    • To participate and/or follow the discussion on Twitter please use the hashtag: #InternEdu
  • 4. Today’s Topics
    • Section One: Paid versus Unpaid Internships
    • Utilizing Non-Traditional Interns
  • 5. Paid vs. unpaid internships Deciding on compensation while being mindful of the law
    • Outline:
    • Definition of internship from SHRM/NACE
    • Intern In Michigan’s position on paid/unpaid internships
    • 6 Criteria from Federal Government
    • Unpaid Internships – Making experience valuable for the intern
    • Unpaid Internships – What can you do to add monetary value
  • 6. Definition of Internship
    • An internship is a carefully monitored work or service experience in which a student has intentional goals and reflects actively on what he/she is learning throughout the experience. Internships vary in length and may be part-time or full-time. They can take place in any work or service setting. They may be part of an educational program and carefully monitored and evaluated for academic credit, or they can be part of a learning plan the intern develops. The important element that distinguishes an internship from a short-term job or community service is the "intentional learning agenda" that the intern brings to the experience.
  • 7. What’s the agenda?
    • The important element that distinguishes an internship from a short-term job or community service is the "intentional learning agenda" that the intern brings to the experience.
  • 8. Intern in Michigan’s position on paid/unpaid internships
    • While paid vs. unpaid internships are left up to the discretion of the employer providing the internship, Intern In Michigan encourages paid internships. We also strongly urge that all employers offering unpaid internships be in compliance with federal labor laws.
  • 9. 6 Criteria from Federal Government
    • The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment
    • 2. The internship experience is for the benefit of the intern
    • 3. The intern does not displace regular employees, but works under close supervision of existing staff
    • 4. The employer that provides the training derives no immediate advantage from the activities of the intern and on occasion its operations may actually be impeded
    • 5. The intern is not entitled to a job at the conclusion of the internship
    • 6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.
  • 10. Info about the 6 Criteria from Federal Government
    • If all of the factors listed on the previous slide are met, an employment relationship does not exist under the FLSA, and the Act’s minimum wage and overtime provisions do not apply to the intern.
  • 11. About the fourth criteria
    • Most employers will find trouble proving their internship program satisfies the fourth criteria . The business case for employers to have an internship program relies on the concept that the employer will receive some sort of benefit from the interns work.
    • The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
  • 12. The position of the National Association of Colleges and Employers (NACE)
    • The National Association of Colleges and Employers (NACE) believes that the US Department of Labor criteria for assessing whether internships in the for-profit sector may be unpaid must be reviewed and further clarified to ensure they account for the incredible diversity of students, higher education institutions, and employing organizations involved in such programs. Further, all interns, regardless of their compensation, should enjoy similar, basic protections in the work setting consistent with all laws, ethical consideration and sound business practices.
  • 13. If unpaid, how do you make the internship valuable for the student interns?
    • Internships are critical for students to gain access to overall networking in the business world, build connections in their chosen field, enhance current skills along with building new skills, and a leg up on their competition. Employers with successful internship programs have stated that they use the programs as a search for their entry-level full time workers.
    • An intern will be exposed to proper work/office etiquette, including proper dress code, teamwork, working by self, phone etiquette, dependability, understanding their role in an organization.
    • Interns have the opportunity to establish positive relationships during their internships which could be used as a reference for down the road to further their employment. The great thing with these relationships is they will stay with the intern as they move into other internship opportunities or fulltime opportunities.
    • If the internship is structured, follows the work plan and job description and is in the field of study that the student will be pursuing after graduation, the intern will gain real work experience to add to their resume. .
    • According to the National Association of Colleges and Employers’ 2010 Job Outlook Survey, 75 percent of employers prefer job candidates with relevant work experience. More than 90 percent prefer to hire interns or co-ops who have worked for their organization
  • 14. If your internship qualifies for not paid, what can you do to add monetary value etc. for the intern?
    • Carpooling with a fulltime employee, so that they intern doesn’t have to spend a lot of money on gas to get to work
    • The company might provide you with free lunch everyday
    • Flexible work scheduling that allow for the intern’s other responsibilities
    • Some businesses might offer a stipend in order to cover expenses
    • Some students on completion of the internship are offered a full time job while some others are offered summer employment
    • Academic credit
    • Invitations/tickets to a great events in recognition of performance