Unpaid Internships in HR: Dissecting the Pros and Cons
- Team of keyHRinfo.com
- Mar 9
- 6 min read
keyHRinfo.com offers services in areas of payroll implementation, payroll data migration, payroll consolidated reports and analytics to international companies with presence in Hungary.
Unpaid internships give future employees the chance to gain experience and knowledge in the chosen field and can be done even during study breaks. While it has the disadvantage of not being recompensated in payment, it has the advantage that it gives experience first hand the chosen field, and also helps decide on future carrier choices.
Unpaid internships in Human Resources (HR) have become a prevailing topic of discussion in recent years. While they can serve as a valuable stepping stone for many aspiring professionals, they also pose notable concerns regarding fairness, legality, and ethical implications. In this article, we aim to explore the various aspects of unpaid internships in HR, weighing their benefits and drawbacks, while also addressing legal considerations, the impact on career development, and ethical issues surrounding these roles.
Understanding Unpaid Internships
Unpaid internships typically offer students or recent graduates industry experience in the hopes of enhancing their resumes. For many, HR represents a unique facet of business operations, influencing workplace culture, employee relations, and overall organizational success.
However, as the prevalence of unpaid internships grows, so does the debate surrounding their impact on organizational dynamics and individual aspirations. According to a report by the National Association of Colleges and Employers (NACE), around 43% of internships are unpaid. This statistic raises questions about accessibility and whether unpaid internships inadvertently discriminate against individuals

The Benefits of Unpaid Internships in HR
1. Gaining Practical Experience
One of the most compelling reasons to accept an unpaid internship in HR is the opportunity to gain firsthand experience. Interns can immerse themselves in various functions of HR, from recruitment and onboarding to training and employee relations. This practical experience is invaluable compared to theoretical knowledge gained in classrooms.
For example, an intern at a large corporation may assist with organizing job fairs, analyzing employee surveys, or participating in team-building activities. These experiences can significantly bolster a resume and provide practical skills that are essential for a future career in HR.
2. Building a Professional Network
Internships are an excellent way to forge professional connections. Working alongside experienced HR professionals allows interns to cultivate relationships that may lead to employment opportunities in the future. Networking is vital in HR, where contacts can often translate into job offers or referrals.
A study by LinkedIn found that as much as 85% of jobs are filled through networking. Therefore, obtaining an unpaid internship can set the groundwork for valuable professional relationships that support long-term career growth.
3. Improving Skill Sets
Unpaid internships often expose interns to diverse HR functions. Interns can develop essential skills, including conflict resolution, communication, and employee engagement strategies. These skills not only help in future HR roles but are transferable across various industries.
Moreover, recruiters often look for candidates who have relevant internships listed on their resumes, making the experience particularly beneficial for fresh graduates entering a competitive job market.
The Drawbacks of Unpaid Internships in HR
1. Financial Strain
One of the significant drawbacks of unpaid internships is the financial burden they impose on individuals. Many interns are often expected to cover their commuting costs and living expenses without any form of compensation. This situation is especially burdensome in expensive cities where the cost of living is high.
According to a report by the National Bureau of Economic Research, unpaid internships often favor those from affluent backgrounds, further perpetuating inequality in the workforce.
2. Time Commitment vs. Compensation
Unpaid internships often demand a substantial time commitment, sometimes paralleling that of a full-time job. This expectation can create a conflict for individuals who need to work part-time jobs to support themselves financially.
Unfortunately, many potential interns may have to forgo valuable opportunities due to financial constraints, leading to a talent gap in the HR field where passionate candidates are unable to pursue unpaid roles.
3. Ethical Concerns
The ethical implications of unpaid internships are increasingly coming under scrutiny. Critics argue that unpaid internships exploit students and recent graduates, using their enthusiasm for industry experience to benefit organizations without offering appropriate compensation.
Some organizations effectively turn internships into free labor by placing minimal training responsibilities on interns, which only enhances the ethical dilemma. The fairness of unpaid labor in a knowledge-driven economy prompts conversations about the future of internships and their viability.

Legal Considerations Surrounding Unpaid Internships
While the benefits and drawbacks of unpaid internships are clear, understanding the legal framework governing them adds another layer of complexity. In the United States, the Fair Labor Standards Act (FLSA) sets strict criteria for determining if an intern qualifies for compensation. Here are a few key points:
Educational Benefit: The internship should be primarily educational, benefiting the intern rather than the employer.
No Promise of Employment: There should be no expectation of a job at the end of the internship.
Supervision: The intern should be closely supervised and receive educational instruction throughout their time in the role.
Many companies misuse these criteria, leading to potential legal ramifications. Organizations that fail to comply with FLSA requirements can face lawsuits and financial penalties. Thus, both interns and employers must be aware of the legal guidelines surrounding unpaid internships.
Impact on Career Development
The repercussions of accepting an unpaid internship can vary significantly for individuals. For some, a well-structured internship can provide essential connections and skills, propelling their careers forward. For others, the lack of compensation might lead them to question their value in the workplace.
For instance, a graduate may land an unpaid internship at a renowned firm which then leads to a full-time offer, underscoring the importance of the experience. Conversely, another graduate may participate in a poorly managed internship that offers little in terms of gain while burdening them with costs.
Long-term Impacts
Studies have shown that unpaid interns often struggle with transitioning into paid roles. A report from the Economic Policy Institute indicates that those who engage in unpaid internships may earn less over their lifetime because they miss out on compensated positions during critical early career stages.
Examining Structures for a Fairer Future
As unpaid internships continue to be a topic of concern, numerous organizations and policymakers advocate for fairer internship structures. This might include:
Legislative Changes: Advocating for policies that require internships to be paid or compensated through academic credit.
Transparency: Encouraging organizations to be upfront about internship requirements and expectations.
Access Programs: Establishing programs that support low-income students in securing paid internships within HR.
These initiatives can contribute to a more equitable landscape in HR and provide opportunities for a wider range of candidates.
Looking Ahead: The Future of Internships in HR
As we analyze the landscape of unpaid internships in HR, it’s imperative to strike a balance between the benefits of experience and the ethical, legal, and financial implications involved. Organizations and aspiring HR professionals should advocate for a future where internships are both enriching and fair.
By promoting fair compensation and equal opportunities, we can ensure that the workforce in HR reflects the diverse society it serves. Ultimately, reconsidering the standard practice of unpaid internships is essential for fostering inclusivity and fairness in career development within the HR field.
Frequently Asked Questions
Are unpaid internships legal?
Yes, but they must adhere to strict guidelines set forth by labor laws to define what constitutes an unpaid internship.
What skills can I gain from an unpaid internship in HR?
Interns can build skills in communication, conflict resolution, and various HR processes, which serve valuable for future employment.
How can I find paid internships in HR?
Research companies in your area, network with professionals, and leverage university career services to find paid opportunities.
Do unpaid internships count on my resume?
Yes, unpaid internships can be valuable experiences to include on your resume, especially if they involved significant responsibilities.
What are the ethical concerns regarding unpaid internship ?
Unpaid internships can create inequalities, as they tend to favor individuals from affluent backgrounds who can afford to work without pay.
Through understanding both the potential advantages and disadvantages of unpaid internships in HR, you can make informed decisions that align with your career goals while advocating for a more equitable future in the workforce.
keyHRinfo.com offers innovative HR and Payroll services for startups from reviewing the needs, to the solution proposal, implementation and operational phases. Also ongoing assistance for operational, audit and Mergers and Acquisitions.
keyHRinfo.com Contact: viola.pokhe@keyhrinfo.com
Comments