Unpaid vs. Paid Work-Integrated-Learning: A Research Approach

Presented by members of the CAFCE Research Committee:

Ms. Judene Pretti, University of WaterlooMs. Christine Arsenault, University of Toronto Scarborough

Dr. Rocco Fondacaro, University of Waterloo

Agenda

• Canadian Context• Why look at paid vs. unpaid WIL?• Factors affecting WIL compensation• Current Research• Gaps in Research• Moving Forward

Canadian Context

• CAFCE Research Committee Mandate• Co-op is dominate form of WIL• Co-op defined• Accreditation

Why look at paid vs unpaid WIL?

• In the news…• Attention of policy makers• Employment access:

“[an unpaid internship] cuts out people who can’t afford to do unpaid internships; it can [favour] people based on their socioeconomic class. It erodes any notion of meritocracy. – Andrew Langille, Employment Lawyer

• Other reasons??

Factors Affecting WIL Compensation

Remuneration

Supply & Demand

IndustryLearning

Outcomes

Cultural Norms

What Literature Exists

• Very little on compensation as issue in WIL• Many examine legal aspects Gardner, P.

(2012).

• Other compensation related themes include:• Quality of the work experience• Learning impacts• Access to WIL and Employment Prospects• Areas are not mutually exclusive

A Word on Methodology:

• Paid vs. unpaid normally not primary issue of research

• When compensation is primary topic, types of WIL studied often excludes “co-op” model– Co-op requires pay, may skew results

• Findings primarily from survey data• Majority of research from U.S.

What the Research Says:

Paid internship/co-op employment affects:• Realism and authenticity• Employer/employee relationship• Substantive work• Accountability and evaluation• Sanctions for Performance (Termination)• Corporate competitive advantage

What the Research Says:

Overall… • Evidence on Paid vs. unpaid and the perceived quality

of experiences is minimal and equivocalGardner, P. (2011)

Chatzsky, J., & McGrath, M., -- Summary NACE 2011 (2011)

• Paid or unpaid – both provide balance during student life, sense of community, connectedness

Billett, S. & Ovens, C. (2007). Bounous, R. M. (1986).

What the Research Says:

Overall… • Employers who intend to hire students later provide

higher quality experiences • Paid interns/co-ops more likely to be hired post work

terms Bailey, Hughes and Barr, (2000)

• More meaningful work for paid co-ops/interns– Paid do more professional work, unpaid do more clerical

workChatzsky, J., & McGrath, M. (2011, November 28)

What the Research Says:

Overall… • 63.1 % of paid interns received at least one job offer, while only

37 % of unpaid interns received a job offer. • 35.2 % with no internship received at least one job offer.

• $51,930 is median starting salary new grads with paid internship $35,721 is median salary for those with unpaid internship

• $37,087 is median salary for new grads with no internship NACE 2013 Student Survey (2013)

38000 responses from college students, 9215 earning bachelor degrees

What the Research Says:

Overall… • 51.3% of students not paid for their internship experience– up 3.6% from previous year

• 64.1% of students need second jobs when doing unpaid internship

• continued decline in paid opportunities working against companies’ long-term recruitment efforts and branding efforts

• Legal challenges to continue to increase, creating potential liabilities for companies who employ unpaid interns.

Intern Bridge, National Internship Salary Survey (2012)11000 students at 150 universities

What the Research Says:Overall• Nearly half (49%) of unpaid in private sector

Couture & Attfield (2014)

• More in Unpaid– Women; students with family incomes < $80K; Education, social

sciences, health sciences, arts & humanities, communications major

• More in Paid– Engineering, computer & science majors

• Highest income students (>$120k) more likely in both paid and unpaid internships

Gardner, P. (2011)

What the Research Says:Employer views… paid work • Attracts better students, and can expect more of them

Hurst, J. L. & Good, L. K. (2010)

• Exposure to demands, capacities and commitments required for working life beyond school – punctuality, working with others, time and personal management– working with others, imposition of sanctions (termination)– Claimed to be the most valued capacities for the workplace

Billett, S. & Ovens, C. (2007)

• Employers have more positive views about paid interns– better attendance, reliability, attitudes– Why? …pay incents better performance, or more selective in hiring

Bailey, Hughes and Barr, (2000)

What the Research Says:Student view… paid work• Interns more satisfied with work experience

– But unpaid interns are “not unsatisfied”Beebe, A., Blaylock, A. & Sweetser, K. D. (2009).

– “I felt more like an ‘engineer’ when I was getting paid to do engineering work”Bounous, R. M. (1986).

• Qualifications needed to get better job and pay• What I don’t want to do… for a living• What I do want to do.. but not is this industry or job

Billett, S. & Ovens, C. (2007)

• Priorities… “work for pay comes first, internship or career enhancement comes second, and school work comes last”

Gardner, P. (2011)

Research Gaps:

• Replication of existing research• Paid vs. unpaid…• On quality of work experience• On type of work given students • On how seriously employers view the experience • On how seriously students view the experience• On attainment of learning outcomes

Gardner, P. (2012)

• In the Canadian context

Moving Forward

• More definition among WIL models• Understanding and engagement by stakeholders • Legal, ethical, and policy evolution• New and Emerging forms of WIL• Changing face of work force… e.g., entrepreneurial

• Alternative forms of remuneration

Moving Forward

Sattler, P. & Peters, J (2012). Work-Integrated Learning and Postsecondary Graduates: The Perspective of Ontario Employers. Toronto: Higher Education Quality Council of Ontario.

2008 2009 2010 2011 2012 20130%

2%

4%

6%

8%

10%

12%

14%

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

Percent Growth Work TermsUnpaid as a % of all employedEmployment Rate

Employment rate

Moving Forward …unpaid at uW• Minimizing absolute number of unpaid opportunities

– Active management of unpaid; Discussions with employers; Alternative remuneration

Questions?

Unpaid/Paid Reference List“In the News”: http://www.internbridge.com/company/unpaid-internship-resource-centerLiterature/Research Articles:Bailey, T., Hughes, K. & Barr, T. (2000). Achieving scale and quality in school-to-work internships: Findings from two employer surveys. Educational Evaluation and Policy Analysis, 22(1), 41–64. SAGE Publications.Beebe, A., Blaylock, A. & Sweetser, K. D. (2009). Job satisfaction in public relations internships. Public Relations Review, 35(2), 156–158. Elsevier. Billett, S. & Ovens, C. (2007). Learning about work, working life and post-school options: guiding students’ reflections on paid part-time work. Journal of Education and Work, 20(2), 75–90. Taylor & Francis.Bounous, R. M. (1986). Experiential learning programs: An organizational schema. Journal of Career Development, 13(1), 61–67. Springer.Chatzsky, J., & McGrath, M. (2011, November 28). The great American internship swindle. Newsweek, p. 22. Retrieved from: http://www.newsweek.com/why-students-shouldnt-take-unpaid-internships-66241Gardner, P. (2011). The debate over unpaid college internships. Intern Bridge. Gardner, P. (2012). Reaction on Campus to the Unpaid Internship Controversy. Intern Bridge.Hurst, J. L. & Good, L. K. (2010). A 20-year evolution of internships: Implications for retail interns, employers and educators. The International Review of Retail, Distribution and Consumer Research, 20(1), 175–186. Taylor & Francis.InternBridge (2012). 2012 Internship Salary Report. National Association of Colleges and Employers (2013), The Class of 2013 Student Survey Report. Sattler, P. & Peters, J (2012). Work-Integrated Learning and Postsecondary Graduates: The Perspective of Ontario Employers. Toronto: Higher Education Quality Council of Ontario.