Internships are commonly seen as a crucial stepping stone for college students or recent graduates seeking to enter the professional world. Interns can gain professional skills and experience that can be difficult to access otherwise, hence preparing for future work challenges. However, unpaid internships that become increasingly common in many industries can have adverse effects on both individuals and society at large. Although unpaid internships may initially appear attractive, research shows that unpaid internships don’t adequately prepare participants for long-term employment. Therefore, their potential drawbacks should not be taken lightly by students and young adults who consider taking this path.
An analysis of survey data from spring 2019 revealed the value of internship opportunities for students transitioning to the job market. Significantly more individuals who completed a paid internship landed a job before graduation compared with those who had unpaid experience (63% vs. 37%). In fact, over one-third more people without any internships got jobs than their peers in similarly situated scenarios. Unfortunately, many organizations use unpaid interns as cheap labor, and this practice can have harmful effects on the labor market by setting low expectations or standards. Despite feeling like it is essential at times to secure internship experiences during college years, there should be no expectation that compensation must be forfeited in order to gain some skills and knowledge that might (or might not) be essential for future success.
Unpaid internships are an unfortunate reality for many, limiting the earning potential of interns down the line. It is particularly pervasive in fields such as education, arts, humanities, and health sciences. In these fields, students are especially exposed to the pressure to obtain the first necessary experience whatever it takes (National Association of Colleges and Employers, 2011). However, this means that when they later get employed, their starting salaries tend to be lower than those who had paid internship experiences or even no prior internships at all (Perlin, 2012). As a result, those who accept unpaid or low-paid internships face long-term disadvantages when attempting to attain a better salary at their next job. This happens partially due to a lack of negotiation power from students undervaluing themselves during unpaid placements initially. Ultimately, it is paramount that individuals recognize they do not need to settle for a depreciated experience in order to secure valuable work knowledge within their respective fields.
Unpaid Internships May Have a Long-Term Negative Impact on the Economy
Unfavorable economic conditions may have some organizations turning to unpaid internships as a source of inexpensive labor. However, this contributes significantly to the negative trend of unpaid workers in our economy. Furthermore, research reveals that while paid internships often lead to full-time employment opportunities, only 1% of interns working without pay ever attain secure jobs with their experiences. Therefore, it is important for people considering an unpaid internship opportunity to take into account the likelihood of not merely being retained after completion but also getting reasonably paid employment thereafter. Also, within a larger economic context, such a practice may provoke wage stagnation.
Furthermore, unpaid internships create an unfair dynamic between employees and employers, potentially leading to the exploitation of young workers. By denying wages and job security to interns, organizations benefit from maximizing their profits at the expense of those attempting to build skillsets for future employment opportunities (Shellenbarger, 2009). Such unethical practices result in job insecurity among vulnerable segments of the population and demonstrate how unpaid internships disproportionately benefit employers at the expense of people receiving no monetary compensation.
Unpaid Internships Promote Discrimination
Unpaid internships can contribute to a cycle of discrimination against people from economically underprivileged segments of the population. The thing is, individuals without the means or opportunity to work in big cities and towns are largely unable to take advantage of the opportunities unpaid internship do offer (Intern Aware, 2013). This perpetuates inequality within certain businesses and organizations due to unequal access across socioeconomic backgrounds. It is important for companies that their interns receive equal treatment regardless of financial circumstances.
In turn, employers who favor providing unpaid internship opportunities put forward a variety of compelling arguments. First of all, they view such arrangements as a type of educational environment that gives interns the same learning experiences found in academic settings but with more hands-on tasks. This might be highly beneficial to interns while not replacing nor impeding existing employees or work operations. Secondly, employers claim that although training may provide useful knowledge and skillsets for individuals, it doesn’t necessarily lead directly to organizational improvements. Finally, employers contend that employee training does not support organizational activities and can sometimes obstruct companies’ operations (U.S. Department of Labor Wage and Hour Division, 2010). These arguments hold weight but, unfortunately, highlight the potential for unpaid internships to further widen the socioeconomic divide, proving adverse effects on the entire society.
Other Arguments Against Unpaid Internships
Unpaid internships can be a cause of financial distress for students. Since they are not receiving any form of compensation, they would have to rely on their parents or other external sources to finance their expenses. This financial burden may cause them to take on additional part-time jobs that can negatively affect their academic performance due to a lack of time and energy.
Unpaid internships can create an unfair advantage in the job market by allowing interns with more money to gain access to certain positions unavailable for lower-income candidates. For example, wealthier students can pay for expenses related to unpaid internships, which creates an unequal playing field.
Companies offering unpaid internships often exploit employees by taking away their rights as workers. Interns are typically expected to perform tasks similar in scope and complexity to those performed by full-time staff. Yet, they mostly don’t have any formal contract or protection from labor laws, such as minimum wage and overtime pay requirements.
Unpaid internships can be detrimental for both parties involved since they will give students little motivation or reward for their hard work and dedication while providing companies with free labor that could be used productively elsewhere. In turn, demotivated interns may perform their duties inadequately and harm the company’s productivity overall.
Offering unpaid internships may hinder companies’ ability to attract talent over time due to their negative perception among potential applicants. Best-qualified candidates may be discouraged from pursuing these opportunities out of concern that they won’t receive adequate compensation for their skillset, thus hurting a company’s competitiveness over time since there is a limited pool of talented candidates available for recruitment.
Conclusion
Organizations have increasingly adopted unpaid internships as a cost-saving measure, which has become the ‘new normal’ since the last economic recession – something which shows no signs of slowing down any time soon. This trend is likely to continue in the future, and employers are legally entitled not to pay interns if they don’t see value added by them. Nevertheless, companies should not rely on such a simplistic approach when it comes to compensating interns. Rather, they should exercise discretion on an individual basis when considering whether to remunerate their interns or not. On the one hand, this may help draw more potential job seekers. On the other hand, this might encourage greater engagement among existing interns in terms of increased interest and enthusiasm for their roles.
It is fully understandable for employees to deem interns as not adding any value and consequently decide against remuneration. However, employers must observe the respective merits of individual interns in order to properly identify those who make positive contributions. These productive workers ought to be given appropriate recognition through some form of gratuity or compensation. After all, it’s important to remember that while unpaid internships may have become socially acceptable in some circles, “work without pay” basically equals slavery.
Work Cited
Intern Aware. Why unpaid internships are bad for society. March 2013. Web. 13 March 2014.
http://www.internaware.org/why-unpaid-internships-are-bad-for-social-mobility/
National Association of Colleges and Employers. Unpaid Internships: A Clarification of NACE
Research. http://www.naceweb.org/s10162013/paid-internship-full-time-employment.aspx
Perlin, Ross. Intern nation: how to earn nothing and learn little in the brave new economy, 1st ed. Brooklyn, NY: Verso Books, 2012.
Shellenbarger, Sue. “Do You Want An Internship? It’ll Cost You”. The Wall Street Journal. 28, Jan. 2009. Web. 13 March 2014. http://online.wsj.com/news/articles/SB123310699999022549?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB123310699999022549.html
U.S. Department of Labor Wage and Hour Division. Internship Programs Under The Fair Labor Standards Act. April 2010. Web. 13 March 2014. http://www.dol.gov/whd/regs/compliance/whdfs71.pdf
