Flickr user AFL-CIO America’s Unions
Sometimes an internship opportunity comes along that sounds promising and ticks all the boxes except one—it’s unpaid. You might ask yourself if unpaid internships are worth it, and if you turn to Google for answers, you’ll likely be met with very split opinions: half saying “Yes, take it!” and the other half saying “100%, no!” But the reality is, it all depends on whether or not you feel like it’s right for you.
This controversy around whether or not an unpaid internship is worth taking comes down to understanding the pros and cons. And, of course, most of the time the “worth” depends on the internship itself, the supervisor, potential coworkers, and job perks. So, let’s take a closer look at what you really get out of an internship besides a paycheck, and you can determine if it’s worthwhile for you…or not.
What Is an Internship?
An internship is a structured learning experience that gives you an opportunity to break into the industry or career of your choice. During this time, you can usually confirm that this is what you’ve always wanted to do, or it can help you realize that you’d thrive somewhere else.
Internships can be either part-time or full-time and you often have a mentor who provides guidance and feedback along the way. This opportunity is a chance for you to gain real professional experience and can often result in a job offer if you do well.
Are Unpaid Internships Legal?
According to the Fair Labor Standards Act (FLSA), any “for-profit” employers are required to pay their employees. But, this is where the line gets blurred, as interns and students are not always considered “employees” under FLSA. In this case, companies are not required to pay you for your work.
In order to determine this, a “primary beneficiary test” is used by the courts to assess whether a student qualifies as an employee. They use seven factors to examine who benefits more from the relationship: the intern or the employer. If it is determined that you are a functioning employee, then you must be paid at least minimum wage.
Who Benefits More: Intern or Employer?
Unpaid internships may be legal, but this question is tricky, as interns and employers may disagree on who benefits more. It’s safe to say both benefit. Despite the lack of pay, some interns are grateful for the learning opportunities and the chance to find out if the particular working environment is for them or not.
Employers benefit as well. Oftentimes, interns bring a fresh perspective, and if they become full-time employees, they are much quicker to onboard and train because they have already gone through many of those processes during their internship.
Do Unpaid Internships Lead to Jobs?
Though it is not always guaranteed, many unpaid internships can result in receiving a job offer at the end of your time. Remember, they’re not just going to hand you a job because you are an intern. You have to work hard for it. Ask questions throughout your process, like “How am I doing? Do you see any areas for improvement? What am I doing well at?” If you don’t get a job afterward, don’t be discouraged, this opportunity can still help you stand out in the job market.
Let’s look at the data. The National Association of Colleges and Employers (NACE) conducted a study in 2022 about unpaid internships and their job converting:
- 50% to 60% of eligible interns convert to full-time employees.
- 5% of interns are still with the organization after their first year.
- Paid interns averaged 1.61 job offers, while unpaid interns averaged 0.94 offers, and students with no internship experience just 0.77 offers.
- Paid interns earned a median starting salary of $62,500 compared to unpaid interns who reported earning a median starting salary of $42,500.
- 80% of 166 responding employers indicated that internships provided the best return on investment.
Pros and Cons: Should You Take an Unpaid Internship?
You might be wondering, “Why would anyone be willing to work and not get paid?” However, if you can manage without the financial benefits of a paid position and the opportunity is related to your potential career, it could be worthwhile to accept it for the other experiences you will get. If you’re on the fence about the lack of pay, consider these pros and cons in your decision-making process:
Pros
Valuable Experience
The goal of any internship is to earn valuable, business-world experience. You will undoubtedly learn more than you set out to—anything from how to compose a professional email, how to properly file things and manage your schedule, to interacting with others in a workplace setting—all on top of the specific nature of the internship and the job you’ll perform.
A college lecture can only give you so much insight into a career. Having an internship allows you to really experience it firsthand. This hands-on experience gives you an inside look into your potential career field, learning industry facts, lingo, or standards.
Relevant Field
Generally, you’ll choose your internships based on your career interests. This means you’ll be working in a field relevant to your long-term aspirations. In other words, it helps you test drive a career that you are considering but may not be 100% sure about. Even if the internship is unpaid, you’re still learning the ropes and building blocks of what might be your future career path. Not to mention, internships look great on a resume, showing that you have experience when applying to new jobs.
College Credits
Oftentimes if an internship is unpaid, they’ll “pay” you instead with college credits. These credits count towards your overall graduation requirements, and you essentially get them for free (you pay with your time and work, but not your money). By earning credits, you increase your chances of graduating on time—which is another money-saver.
Networking Contacts
They say it’s all about who you know, and you’ll get to know plenty of people at an internship. By connecting with your coworkers, supervisors, and any other contacts you might make while working, you open up many doors of potential opportunity. After your internship, your boss might even be willing to write a recommendation letter.
Maybe a coworker has a friend or contact who is looking to hire a candidate such as yourself. Or maybe you enjoyed the internship so much that you’d like to work at that very company after graduation. (Awesome—you already have your foot in the door!) Even though you aren’t getting a paycheck, you are building and expanding your network of professional contacts (which is something money can’t buy).
Cons:
It’s Unpaid
Starting with the first and most obvious downside: you won’t get paid. This means you will be putting a lot of time and hard work into your internship without the reward of a paycheck. And since you’re not earning anything, it can put a financial strain on you. Especially if you are trying to pay for college and the cost of living with little to no help. On top of not earning a paycheck, you’re also not necessarily gaining the financial experience that comes along with a steady income, such as balancing expenses or saving money.
Tedious Work
It can be tempting for employees to dump all of the tedious, menial tasks onto the intern, such as filing paperwork or making copies—especially an unpaid one. While you will do lots of meaningful work as an intern, some of the responsibilities you’ll get might be mind-numbing things below your skill level.
So, Is It Worth It?
That’s entirely up to you. There are many valuable experiences you can get out of an internship besides a paycheck, but you should weigh the pros and cons before making the decision. Even if an internship is not paid, it’s still a great investment into your future career. Ultimately, it’s about choosing what is going to be best for you. After assessing the advantages and disadvantages, if your answer is still yes, then go for it!
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