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We have only had 1 intern since I started with the agency in 2015. But from previous work experience in coordinating an internship program, monetary or resume building motivation is crucial to providing a mutually beneficial experience for your organization and your intern.
For the agency world, I think if you can create opportunities where the intern is able to clock billable hours that generate revenue for your company, compensation should be provided. Or if they are able to build/develop/implement an infrastructure for your operations. If they are shadowing and learning only, I think it would be fair to have those interns unpaid.
Following is a link to a few articles on internships that may help you decide how to structure them. One article, in particular, discusses the dangers of unpaid internships so be sure to take a look at that one. Unpaid internships are allowed, but only from an educational perspective. If the intern is performing functions that will benefit that agency, especially in terms of billable hours, you would need to pay them at least minimum wage.
Most of our interns are unpaid, and we usually (a) have them work on pro-bono or non-profit projects, (b) give them a big branding project in that realm to focus on, and/or (c) do not charge clients for work they do - we try to have them work on “extras” or fun projects that haven’t been commissioned by the client, like this animated video of bloopers from a radio session: https://www.youtube.com/watch?v=zeSnqXU4yPw
Our current intern comes in Tue/Thu mornings and all day Friday. She made $100 every Friday at her previous job so we pay her $100 every Friday for her to be in the office with us vs. at that job.
We pay a $1000 per month stipend. All we ask is for consistency. They can come in the same days of every week for full days (as in Mon-Thurs) or the same hours every day (as in Mon - Fri 8:45 - 3:45). This way they can take a second paying job if they need to. Its a lot easier to work their schedules in with ours if they are consistent. If we know they're out every Friday, we may hold off on a photo shoot we'd like them to experience until a day when they are in. Basically they are in about 30 hours a week. It has worked great for over 20 years.