Are you wondering if you should take a paid or unpaid internship? Both of them have benefits and also drawbacks; however, one might be better for your career path than the other. Let’s have a closer look at the differences between paid and unpaid internships and see which one is the best fit for you.
What Is Internship?
An internship is designed to provide practical experience for students to figure out if their chosen career suits them. It also allows companies to screen potential full-time employees by exposing them to actual day-to-day work. Adding an internship experience to your resume is extremely useful, as it demonstrates that you’re dedicated and willing to go further in your career.
Why Is Internship Important for Students?
Internships are the best way to gain relevant work experience, make valuable connections, and get your name out there. They can help you figure out if the career path you’re pursuing is right for you by teaching you more about what it entails. If done right, internships are an opportunity to learn new skills that will benefit your future career.
Here are the key benefits of an internship for students:
- Boosts your resume
- Let you explore your chosen career field fully before making a commitment
- Provides practice for the real world of work
- Builds character by working with others on assignments.
- Give experience in your preferred profession, which helps to land your dream job after graduation.
View more: Top 7 Employee Benefits Trends
Difference Between Paid and Unpaid Internship
A paid internship is an opportunity for students to gain hands-on experience in their chosen field. Students may be looking for work while they are still in school or may want to continue working while they attend classes. With a paid internship, students often gain access to professional contacts and higher-level executives that can help them with their careers once the internship is complete.
An unpaid internship is most often done through a college or university and is meant to give students an opportunity for professional development, similar to what can be gained with a paid internship. The most common outcome of an unpaid internship is the student gaining access to professional contacts, higher-level executives, and the skills required to succeed in their career.
There is little difference between a paid and unpaid internship at face value. The benefits gained from both are similar, though not necessarily the same. In terms of who can take part in an internship, however, there is a clear divide: students with financial support from their parents or other family members have access to more opportunities for internships, while those without may need to find paid internships to gain hands-on experience. Whether it is paid or unpaid internship, it is crucial for students or fresh graduates to be aware of the pros and cons of each before making a move.
Advantages & Disadvantages of Paid Internship
The paid internship offers students an opportunity to gain experience in the field, which is especially valuable for those who are still deciding what they want to pursue. Paid interns often work in their chosen fields and can sometimes even receive college credit for their efforts. Students who participate in paid internships usually need financial support from family members or other sources so that they can pay for housing, food, and other expenses. They are usually able to do this through a combination of earnings from the internship itself, contributions from family members, and any scholarships or other funds that they may qualify for.
Pros
Financial Security
You’re getting paid for your work and can support yourself financially. You will better understand the financial struggles that the average person goes through when working a job that they do not like. There is no such thing as an internship where you get rich, but it does help you to understand how to manage your finances.
Gain Practical Experience
You get to jump right into the workforce and start working, gaining skills along the way. This is beneficial because you can get real-world experience under your belt before you graduate college. You have the opportunity to see what it’s like in the workforce, which helps you figure out what type of career you’d like to work towards.
Gives You a Network
If it is an internship with a well-respected company, you will be able to build up your professional network. You’ll meet co-workers and future employers who can help you get set up for success after college.
Cons
Difficult to Find
Paid internships are difficult to find, especially if you don’t have any prior experience. If you cannot afford to take an unpaid internship, finding a paid option maybe even more difficult. This could limit the number of options that are available to you. Therefore, more young people are leveraging the talent management system to find internship opportunities. The talent management system is the platform that provides access to thousands of internships and also full-time opportunities from qualified companies.
Long Hours & Low Pay
A lot of people choose to take an unpaid internship rather than a paid one because of this. The low pay and long working hours often lead interns to work other jobs on top of their internship. They may even need to rely on their parents or family members for extra funds, which can be stressful.
A Step Back in Your Career Path
If you’re looking to gain valuable experience and jump-start your career, this isn’t the best option. You may not be making much money while working long hours, which means that it’s unlikely that you’ll be able to advance in your current role or get a promotion any time soon. When you are working your way up the ladder, it may take longer to get where you want to go.
Limited Opportunities for Advancement
If an employer only has a small budget and needs their interns to do menial tasks, they won’t have any activities or opportunities for advancement in their internship program. This means that if the goal of your internship is to move into a managerial role, you may need to look elsewhere. Your time and experience may be wasted if you’re not able to advance in the areas that you want to.
Advantages & Disadvantages of Unpaid Internship
Unpaid internships offer students the opportunity to gain academic credit as well as professional experience in a given field. They often provide a chance to work directly with professionals in an industry and to network with other students and recent graduates. Unpaid interns may still incur expenses while participating in the program, such as the costs of food or housing if they are not living with family members or friends. Some programs offer stipends for unpaid internship or reimbursements for certain expenses, but these are few and far between.
Is it worth doing an unpaid internship? It depends on what you crave to get out of it. But before you can answer that, you need to carefully weigh the pros and cons.
Pros
Flexibility
Unpaid internships are usually flexible, so if you need to take time off to attend class or work somewhere else, then it’s easier to do that than with a paid internship. Sometimes interns even get more flexibility than full-time employees, which can be great for students who also want to study for finals.
Gain More Practical Experience
Unpaid internships give you the chance to work in a real office and gain valuable experience while still in school. You can start working and build up your resume while studying for college at the same time. In addition, if you’re working in a field requiring constant education and training anyway (such as medical fields), then you’ll still be gaining experience that can help your career later on.
Learn Responsibility
When you’re working for an unpaid internship, you get the chance to learn responsibility and accountability. You will be expected to come in on time and do your work, just like a regular employee would. This is beneficial for college students who are preparing themselves for full-time employment after school.
Short Time
They are usually only around two or three months, making it easier to manage school and work. If you’re eager to work somewhere, then an unpaid internship can be a good way to test out what you like and dislike.
No pressure
If you’re not looking for a permanent job yet, then unpaid internships are perfect. You’re usually not expected to have a set schedule, and you don’t have any pressure on you.
Networking
Unpaid internships are great places to network because it’s easier to meet people when you’re doing real work with them. You’ll make contacts in your field and learn more about the field itself, which is beneficial for any student before or during college.
Cons
Higher Competition
When everyone else wants the same unpaid internship, then competition goes up drastically. If you don’t do well in the interview process, then someone else will. Not only do you have to be qualified, but you also have to stand out from the competition.
Less Educational
Some feel that unpaid internships are less educational than paid positions because you’re not learning the same skills. If you can work in an environment in which you can ask questions and get help readily, then you’ll be able to learn more. Moreover, some companies don’t offer educational opportunities with their unpaid internships, so it may seem like you didn’t learn anything at all (which is bad for your resume). Even if you’re just getting coffee or taking notes, it’s important that you’re still learning something so you can list off new skills on your resume.
The Job May Not Turn into a Paid Position
If it’s a paid internship, then you can convince your employer to make it part-time or full-time employment after the summer is over. But if it’s an unpaid internship, they may not want to commit to hiring you for another term because they’ll already have saved money by hiring you for the summer.
You May Not Receive a Reference
Some companies expect unpaid interns to know what they’re getting into before applying, and some don’t offer references because it’s not considered a “real” job. They’ll say that you’re not a paid employee and therefore don’t deserve to be called if someone is looking into you. Even if they do give you a reference, it’s usually just a generic statement that doesn’t show much. If you apply to study abroad programs or summer classes after your internship, then they may not think that your experience was “real.” They may only consider you if you have a paid internship on your resume, and some will even prefer paid interns.
Fewer Benefits
Companies know that unpaid internships are usually given to lower-income individuals, so they don’t provide the same benefits (like healthcare). They know that most unpaid interns can’t afford to pay for benefits, which is one of the main reasons they’re willing to take on an unpaid intern in the first place.
Unable to Negotiate Your Rate
When you’re paid, you can decide what salary is best for the type of work you do. When you’re unpaid, then your employer can pay as little as they want without it being considered an unfair wage because they know that interns are willing to work for free.
Your Internship May Be Lower-key
Most unpaid internships are done with small companies or organizations, where the interns have to do more grunt work than they would at a bigger company. Paid internships can give you access to employers with impressive names who will be able to open up more doors for your future.
Should Stipends for Unpaid Internship Be Compulsory in the Future?
There’s nothing to guarantee about this, but the change is sure to come. Many countries have already been moving towards this movement. In the UK, the Advertising Standards Authority has banned several companies from advertising unpaid internship opportunities because they did not provide proper stipends for their interns.
It is expected that paid internships will be more useful in terms of post-internship job placement, higher satisfaction among interns, and moreover, they would encourage more people to take up such opportunities. In addition, there are also certain financial advantages for aspirants who opt for a paid internship.
With this said, we can undoubtedly say that the time is not far when it will be mandatory for companies and organizations to provide proper remuneration to interns before taking up their internships. We hope that there will be a compulsory stipend, with benefits emerging for both interns and companies.
Summary
Both paid and unpaid internships have their own unique benefits, but which one is better for your career path depends on what you hope to get out of the internship experience. Paid internships offer more stability and structure, while unpaid internships can give you more opportunities to learn and grow. Ultimately, it’s essential to weigh the pros and cons of each option before making a decision. Paid or unpaid internship? What are your thoughts?
