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The ins and outs of paid work experience, for employers

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Volunteering, internships, work placements and work shadowing are all very good ways for young workers to get some experience and improve their CV. But when should businesses pay for work experience? Work experience payment is not a straightforward topic and there are multiple factors to consider when thinking about taking on an intern, volunteer or individual for a work placement. This article gives businesses the information they need to understand work experience and when and how to remunerate these types of worker. We explore the different types of work experience, from internships to work placements, and shed some light on the appropriate payment for each situation.

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An introduction to work experience

Work experience encompasses multiple types of work structure. It includes placements and internships, which have subtle differences between them. Most types of work in which the worker experiences the place of work and learns from it to gain skills are considered work experience. Internships and placements often take place at the beginning of a worker’s career and before they join the workforce on a full-time, permanent basis. Applicants for these types of role usually seek internships or placements within industries and businesses that they are interested in. Most of the time, this work experience takes place after an undergraduate or postgraduate degree course.

Experience is highly valued by employers. Applying for work experience will boost a candidate’s CV and will also prepare them for the work environment. By gaining real hands-on experience, young workers are taking a step towards their career path.

Types of work experience and the subtle differences between them

The subtleties between the types of work experience are often misunderstood by employers. In the section below, we define work experience as a whole and the types of work experience: internships and placements. It is essential that employers are aware of the differences between these two types of work experience.

What does work experience involve?

The term work experience refers to a short amount of time that an individual spends within a company to gain their initial experience in the field. It is a first immersion within the working environment. The length of work experience can vary from a week to several months. Often, these weeks spent in the workplace are at the end of the educational year. Work experience also encompasses volunteering for charities a few times a week or shadowing professionals for a week.

This means that work experience encompasses a wide range of set-ups, environments and parameters within the work environment. Usually, the individuals are not given high-value responsibilities or significant tasks within the business, as they are beginners and require training and support. They are often shadowing someone to learn more about a job within a specific working environment.

Internships

An internship is a type of work experience. It usually lasts between a month and a year. Depending on the company welcoming the intern, the training included in this work experience will vary. Internships may be similar to graduate roles.

Interns are more than just shadowing their colleagues. They take part in the work and are treated more like employees. As such, internships are seen as high-end work experience, a sort of first junior role. Gradually, and depending on the length of the internship, the intern will be assigned tasks with increasing responsibility . They are often conducted over the summer as part of a graduate scheme.

Within the internship category, there are different variations:

Compulsory internships

These are generally part of university courses and may or may not relate to what the individual is studying. The idea is to get experience in the work environment.

Professional services internships

These internships bring more value to the individual’s CV. They are targeted towards the career path they wish to take as future employees. As such, individuals should seek professional services internships in the industry that attracts them and in a similar role to what they wish to be employed as. Through the internship, individuals will get the training required to progress in their role and gain invaluable experience.

Internships are highly valued by employers; they are a demonstration of willingness to gain experience and join the workforce.

Placements

Placements refer to long periods of work experience in a business. Usually, they are part of a four-year university degree course, which are designed to accommodate a year in the work environment and the desired industry.

More and more employers are offering placements. They are a way for businesses to recruit young professionals and to streamline their recruitment process. Through the placement, they seek to recruit talent and may even identify skill gaps they wish to fill in their business. Placements are integral to the degree programme and may be assessed. They are directly linked to the type of study that the individual is doing.

Individuals on placement are part of the team they join. The tasks they are assigned are close to other members of the team, while considering their level of seniority and experience in the role. In a way, those on placement are like junior employees. It is a potential way for both the employer and the individual in the placement to assess whether this is the candidate or the role for them.

Differentiating work placements from internships

There are some subtle differences between internships and placements. It is essential that employers are aware of these differences. The main difference resides in the fact that internships tend to take place over the summer or after graduation, whereas placements are part of the degree itself. As such, students on a placement are receiving academic credit for their work, whereas interns are seeking to gain general experience.

Paying for work experience: when and how much

When it comes to remuneration for the candidate applying for work experience or an internship, the ACAS website provides good advice. The acronym stands for Advisory, Conciliation and Arbitration Service, and the purpose of the organisation is to help employers and employees improve workplace relationships.

Depending on the situation, someone doing work experience may have the same rights as an employee. The rights will depend on the terms agreed with the employer . There are laws for employers around work experience, minimum wage and more. We explore these in the section below.

Remuneration rights

Unless they are a student, someone conducting work experience has the same rights as other employees. This means that the national minimum wage applies, unless:

  • the individual is doing a placement as part of a higher education course;
  • the individual is doing work shadowing.

National minimum wage

The law stipulates that employers must pay the minimum amount in proportion to the hours worked. For individuals under 23 years old or apprentices, the national minimum wage or NMW applies. For those aged 23 or over, it is the national living wage or NLW.

What are the current rates?

Based on the government website, as of April 2022, the rates and wage bands are as follows:

  • Those who are 23 years old or over must be paid a minimum of £9.50 per hour.
  • Those who are between 21 and 22 years old must be paid a minimum of £9.18 per hour.
  • Those who are between 18 and 20 years old must be paid a minimum of £6.83 per hour.
  • Individuals under 18 and apprentices must be paid a minimum of £4.81 per hour.

The government reviews the minimum wage regularly. Rates are due to increase as of 1 April 2023. Employers should stay up to date with any new regulations.

Payment for interns

The compensation for interns varies widely depending on the industry, the type of work conducted and the employer themselves. The minimum wage that applies must be respected, but employers may offer more, particularly when the individual is performing similar duties to other employees.

Exceptions to paid work placements

As with many rules, there are exceptions. When it comes to pay, exceptions may apply in the event of:

  • a ‘sandwich placement’, usually part of a higher education course;
  • work shadowing situations;
  • work at a registered charity;
  • work experience that is part of ‘back to work’ programmes.

It is essential that businesses are aware of these variances to ensure that they apply the appropriate amount of compensation to their interns or anyone engaged in work experience. Employers and the individual doing the work experience should discuss the ins and outs of the job, the duties and responsibilities, and all the parameters that will shape the work experience. This should set the work experience on the right foot for all parties, making them aware of their roles and responsibilities, and setting the right expectations.

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