• Thousands of internships are reserved for family and friends, says report

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  • 18 Apr 2017
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HR departments in some sectors accused of ‘looking after’ well-connected individuals

The number of internships available in the UK and their damaging effect on social mobility has been dramatically underestimated, according to an influential new report – which blames some HR departments for reserving lucrative job opportunities for friends and family.

The Institute for Public Policy Research (IPPR) said that while around 11,000 internships were advertised each year, the real number on offer was closer to 70,000.

Not only do many of these 60,000 additional positions not offer meaningful learning opportunities or working conditions, they entrench privilege because they are largely inaccessible to those without connections or knowhow, it has been claimed. They also discourage businesses from investing in graduate or other permanent recruitment.

Many such internships are also unpaid; the IPPR said that while there is a lack of data on unpaid internships as they are often informal or even illegal, it has been estimated that one in five does not offer a wage.

The report, The inbetweeners: The new role of internships in the graduate labour market, suggested that access to the most competitive professions appeared to be governed by people’s ability to source and fund unpaid internships.

It said the total number of internship opportunities had risen by as much as 50 per cent since 2010, while the number of advertised graduate-entry jobs sharply declined over the same period.

Publishing, media and the arts were named as particularly inaccessible to graduates from poorer backgrounds, while the creative industries as a whole had a high concentration of internships.

The IPPR also cited anecdotal evidence that many large banks had specific HR professionals in place to “look after internships for people who are either sons of clients or top executives within the bank” – though it did not offer further evidence or commentary around this finding.

Katerina Rudiger, chief community officer at the CIPD, said the government needed to do more to “ensure legislation around unpaid internships is clear and both young people and employers are familiar with it.

“Employers need to pay the minimum wage, advertise positions openly and have a fair and transparent recruitment process. They also need to make sure that internships are high quality and provide the intern with some real experience of the job in question, but without replacing any paid staff.”

But Rudiger stopped short of calling for legislation, suggesting: “The industry must be self-regulating, and employers need to lead by example and speak openly about their approach to internships.”

The latest findings, however, will only increase the likelihood of regulation in this area. In November 2015, employment minister Damian Hinds said the government was reviewing the workings of unpaid internships as part of prime minister Theresa May's pledge to “make Britain work for all, not just the rich”.

Ministers were also said to be considering banning unpaid internships to give young people from lower-income families a “fair crack” at creating careers in the most competitive industries.

The IPPR report found that internships were now considered a ‘must have’ on young people’s CVs, with almost half of employers admitting that, without work experience, applicants had ‘little or no chance’ of receiving a job offer.

Focus groups it hosted with graduates illustrated that “discrimination, low confidence in navigating opaque recruitment practices and a lack of knowledge in how to find good placements can prevent young people from less privileged backgrounds from securing an internship”.

The report concluded: “In short, internships are acting as a barrier to social mobility, rather than being a driver of it.”

IPPR research fellow Carys Roberts said internships were “closed off to many” despite being essential routes into leading professions.

“It is extremely difficult to access internships in many sectors, and it’s those with the connections, knowhow and financial means who find it easiest to gain entry. For internships to help social mobility, universities, employers and government should act together to increase the overall availability of internships, and minimise any barriers to take-up for those who are disadvantaged.”

The IPPR suggested that unpaid internships lasting longer than four weeks should be banned in private companies. It also advocated introducing a ‘national opportunity programme’ offering residential internships for disadvantaged young people, giving every university student access to a brokered work placement and establishing a new association to give a stronger voice to interns.

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Comments (4)
  • It's not just internships, it's jobs as well. I've seen practically the whole family employed in some public sector jobs.

  • There used to be fairly strict rules in the public sector about appoinments & opportunities that restricted or ameliorated the effects of insider connections or relationships to public servants. The rampaging effects of the contracting out of services, casualisation of employment and lots of other career stalling policies have, in my opionion, exacerbated the 'nepotism' accusation made of the financial services sector. Even our food production, construction and possibly other industries are blighted by this phenomonen, (for some we could even specify the race/first language/country of origin that has to be held even though we're not engaged in that industry ourselves).

    Why did Brits vote for Brexit? I'm certain it has a lot to do with the inaccessiblity of routes into work or other means of social mobility.

  • This study endorses what I have been saying about the Banking industry for a number of years now. It is the same for paid jobs and recruitment agencies perpetuate the unfair practices by saying that they will only consider applications from people with previous banking or professional services experience. If you are young or from an minority ethnic background this makes inequality even worse. The Government should legislate to address this imbalance, self regulation only means that nepotism and discrimination is allowed to flourish unchallenged.

  • This probably explains why I haven't yet been able to get HR experience and transfer from law.