All You Need To Know About Interns

Internships are increasing in the UK; with high unemployment figures perhaps this is not a huge surprise. In the current economic climate it is difficult for graduates to get jobs, especially without any experience, so for many an internship is an excellent way to gain the experience needed within a specific industry. But what do internships mean for your business and what do you need to be aware of when hiring interns?

What is an intern?

Generally an internship offers work experience in a particular field such as Law or Fashion PR. Interns may shadow one employee or several employees with different roles in a department, or they may receive specific training, thus gaining first-hand experience of a job role. Usually an internship will be for a relatively short, fixed amount of time e.g. three months, but this can vary. Most internships are started after further education, although this is not always the case. Internships are often highly competitive as applicants hope the experience gained will help them to get a job within the industry.

Benefits for the intern

An internship means the chance to make contacts within the industry whilst also gaining a realistic idea of what a job entails and whether it is right for them.  Many interns will hope to be offered a permanent role, and the experience will look good on their CV and help with future job applications.

Benefits for your Company

Offering internships is a way for employers to discover talented workers and boost productivity in the office. A recent survey conducted by The Workforce Readiness Company showed that one manager can gain 225 full 8 hour workdays in one calendar year, this could prove helpful as interns can pick up work that regular members of staff haven’t had time to get round to. Interns can also inject new life into a company and provide fresh ideas. Often students will have a good level of IT knowledge that can be used to help with online marketing activity or social media updates.

What is the legal position?

While there is currently no legal definition of an intern, if an intern can be classified as an employee then legally they should be paid the National Minimum Wage (£6.08 for over 21’s & £4.98 for 18-20 year olds * due to be increased in October 2012).
The Employment Rights Act 1996 states that an employee is “an individual who has entered into or works under a contract of employment”.  And according to the ERA, a contract of employment is defined as “a contract of service or apprenticeship…whether oral or in writing”.

So when does an intern not need to be paid?

Those completing work experience or internships of less than a year that are part of a qualifying higher or further education course are exempt from receiving NMW, as are workers who are compulsory school age.
The government rules that work shadowing where no work is being performed does not entitle an intern to a wage and genuine volunteers need not be paid.
If you offer an unpaid internship try to avoid entering into a legally binding contract with an intern as this could lead to them being classed as an employee. This can be done in the following ways:
  • Don’t make payments to interns that could be construed as wages
  • Expenses paid must be able to be identified as expenses
  • Give the intern the ability to refuse tasks and choose when to work
  • Encourage shadowing and don’t ask the intern to complete set tasks with set deadlines
  • Use flexible language like “usual hours” instead of contractual language
  • Treat interns fairly to avoid disputes
If an intern is acting as a volunteer or merely shadowing someone you can use a simple agreement that includes the following:
  • Placement dates
  • Suggested hours of attendance
  • Location
  • Supervisor’s name
  • Specific learning objectives
  • Work related expenses
  • Health and Safety
  • Insurance
  • Confidentiality
If the intern is being paid, a short term employment contract can be used.

The Internship Charter

In 2009 The Chartered Institute of Personnel and Development drew up The Internship Charter, a voluntary code of practice with six principles intended to support organisations when devising internship schemes. These guidelines are a really good place to start and the six guidelines are as follows:
  • Recruitment – interns should be recruited in the same way as employees, through open advertisement of internships
  • Induction – provide a clear induction process to introduce the intern to the organisation
  • Treatment – create a structured work plan where interns can learn new skills, don’t just send them to make coffee!
  • Supervision – assign a supervisor to mentor your intern
  • Payment and duration – as a minimum expenses should be paid
  • Reference and feedback – hold a performance review and provide feedback for the intern, also ask the intern to provide their own feedback on the company

Where can I advertise for an intern?

There are many websites where you can advertise for an intern. The Graduate Talent Pool website for example, allows you to advertise for an intern at no charge. The site attracts thousands of graduates looking for internships in various sectors so is a good place to start. Other popular websites includeProspects and Milkround. For any further advice regarding the recruitment of interns please contact People Business on: 01932 874944.

Conclusion

The right internship can be mutually beneficial for both the intern and the employer. Interns can boost office productivity whilst gaining knowledge in the industry they wish to enter.

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