Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How to Turn Your Unpaid Intern Program to a Paid One


Published on

Hiring unpaid interns is a common but increasingly risky practice. Students are becoming increasingly aware of the legal and social issues surrounding unpaid internships, leading to a rise in lawsuits, PR backlashes and more against companies who do not pay. The goal of this slideshow is to share the legal issues and ethical issues surrounding unpaid interns, as well as the business benefits of paying interns (including increased retention and better talent) to help SMBs make the choice to pay and help University Managers make the case to their bosses and key decision makes to make the investment and change to paid.

Published in: Career, Technology, Business
  • I am so pleased that I found you! I have suffered from Sleep Apnea for years. I have tried everything to fix the problem but nothing has worked. For the last years I have been trying to use a CPAP machine on and off but it is very difficult to sleep with. It's noisy and very uncomfortable. I had no idea there was a natural way to help me. I am so pleased that I found you! ●●●
    Are you sure you want to  Yes  No
    Your message goes here
  • How we discovered the real reason nice guys don't get laid, and a simple "fix" that allows you to gain the upper hand with a girl... without changing your personality or pretending to be someone you're not. learn more... ➤➤
    Are you sure you want to  Yes  No
    Your message goes here
  • Secrets To Working Online, Hundreds of online opportunites you can profit with today! ●●●
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

How to Turn Your Unpaid Intern Program to a Paid One

  1. 1. How to Create a Paid Intern Program!Get on the Right Side of History
  2. 2. Road Map1.) Brief Background on Nathan andInternMatch2.) The real deal behind unpaid interns.3.) 3 critical (non-legal) reasons to payyour interns.4.) How to get company buy-in for yourpaid intern program.5.) Typical compensation levels fordifferent interns(marketing, engineering, design, andmore).6.) Plenty of time for Q & A.
  3. 3. About InternMatch• Started in 2009• Over 600,000 unique student visitors a month• Over 850direct university connectionsHello InternMatch,"I just wanted to tell you that Im a fan of InternMatch. Im a student at ___ University inConnecticut. Though its supposed to be a "prestigious" university, it does not supportstudents who grew up in poverty like me. The administrators at the university do notrealize students like me will not have the luxury of simply entering the workforce viafamily contacts. Gratitude for my newest internship goes almost entirely to InternMatch.My university opens its career resources to students when they enter their third year ofstudies. Those career resources were never made available to me; however, this year Iapplied to a startup on InternMatch, they hired me and now I can focus on my studiesrather than figuring out what Im going to do to make money this summer.”Best Regards,Student
  4. 4. Our InternsInternMatch has now hired over 50 interns** US Employers with 20+ Employees• We have hired numerouscampus ambassadors atschools includingMIT, Harvard, Upenn, Wisconsin, Michigan and more!
  5. 5. Why Hire Interns02,0004,0006,0008,00010,00012,000JulyAugSeptOctNovDecJanFebMarchAprilNew AggregatedInternships• Fill in critical skill gaps• Pipeline for future hires(• Regional Expansion
  6. 6. Topic #2: Unpaid Internshipsand the Law
  7. 7. Unpaid Internships and the LawHave a Goal/Project in mindDOL 6 Point Test1.) The internship is similar to training which isgiven at an educational facility.2.) The internship experience is for the benefit ofthe intern.3.) The intern does not displace regular staff.4.) The intern is not necessarily entitled to a job atthe end of the internship.5.) The employer receives no immediate advantagefrom the intern in fact the employer may beimpeded.6.) The employer and the intern understand that theintern is not entitled to wages during this period.(
  8. 8. Rising Social Awareness• InternAware in Europe, justopened US arm• Occupy Wall Street protestingunpaid fashion interns• Charlie Rose paid $250,000• Hootsuite in Canada now backpaying all interns from last year!(over 500 comments on reddit).Links to Key Articles:Hootsuite:’s Pizza:
  9. 9. Topic #3: Reasons to Pay
  10. 10. DiversityAccording to a report bythe Center for AmericanProgress, minoritystudents are more likelyto be saddled withstudent loan debt, with81% of African Americanstudents financing theireducation throughfederal loans.
  11. 11. A Case for QualityHiring top notch students with the right culture fit is essential for SMBs and Startups+50K /Fantastic Intern-25K /Mediocre Intern• Autonomous but notautomatic• Contributes energyto office/team• Future hire• Can’t test assumptions• Needs to be motivated• Only around for 3months
  12. 12. A Case For QualityOn InternMatch paidpositions get on average2.5 times as manyapplicants!
  13. 13. Building Your CultureStudent Quotes“I didnt think I would see people defending unpaid internships. Ifyoure shadowing someone and you dont get paid, thats fine. Butif youre contributing to a for-profit company, even if it is for onlyfour months, then its illegal and unethical on the companys partnot to pay you. I dont see how that point is debatable: if you workyou get paid, whats the issue?”“This whole argument about unpaid internships being fair game justbecause the student gets experience in return is not valid andmakes no sense. It almost adds up to the fact that you are workingan unpaid internship because you get experience (and not apaycheck) in return. The irony? No one stops getting experienceonce they start getting a paycheck?”“Im in my third unpaid internship (in New York City, nonetheless)and it has only increased my stress level, as I have no regularincome. With the costs of living in the city, I only spend my moneyon food and transportation and I still feel the strain every month.”in mind
  14. 14. Long Term Value• 41% of unpaid interns got a joboffer, compared to 63% of paidinterns• 80% of employers use interns tomake FT hires• 75.7% retention rate after oneyear for FT employees who wereformer interns (vs. 66.5% if not)• 62.4% retention rate after 5 yearsfor former interns vs 48.5% forthose who were not• Paid Interns far more likelyto accept a job than thosewho aren’tSource, ERE:
  15. 15. Topic #4: Getting CompanyBuy-In
  16. 16. A Look at Potential Costs/BenefitsHave a Goal/Project in mindAssuming $10/hr x 40 hrs per week x 12 week internship• One intern costs: $4,800• Ten interns costs: $48,000• One hundred interns cost: $480,000Source:• Direct Value: Graphic Design Intern makes 10 infographics: $20,000• Hiring Savings: Cost of making an entry-level hire estimated to be$5,700 to $8,900. Plus over $1,000 in new training costs.• For every new grad hire that doesn’t work out this cost doubles.• New ideas and other intangibles.
  17. 17. How to Add Interns to Payroll• Interns should not be contractors• Interns should receive an offerletter• Interns should be added topayroll, but not necessarilybenefitsUse our free guide:
  18. 18. Topic #5: TypicalCompensation Levels
  19. 19. Decide on Compensation• Marketing/Business: $10- $12.50/hour• CS $12.50 - $20/hour• MBA $12.50 - $15/hourEducational Compensation is worth more than $$$.Learning software (Basecamp, Hootsuite, etc) is huge!
  20. 20. Educational Value Still Key!Have a Goal/Project in mind• What software will astudent learn?HootSuite, Salesforce, Basecamp, InDesign, etc?• What mentorship optionsdo you offer? Brown baglunches, weekly one onones and more.• How much exposure does astudent get to differentfunctional areas of yourbusiness?Use our free template! Got to
  21. 21. Have FunHave a Goal/Project in mind• Interns can andshould impact yourculture• They come and gobut you can have atruly meaningfulimpact on theirfuture
  22. 22. Interested in Using InternMatch?Post positions at
  23. 23. Thank YouNathan Parcells, Founder/CMOnathan@internmatch.com301-873-8435