What price work experience?

 

With unemployment among 18 to 24 year-olds nudging a million, and all manner of statistics showing that social mobility is neither what it was nor what it should be (arguably), the question of how young people secure company internships and work experience has become a resonant one.

You will recall the issue became politically charged not that long ago, with messrs Cameron and Clegg not exactly speaking as one about whether it is unfair and economically harmful for employers to give work experience to the children of mates (PM and deputy disagree on interns).

Many of us may be hypocrites about this. On the one hand, any employer knows that fishing for talent in the broadest and deepest talent pool is best for his or her business.

On the other hand, it is hard to resist the pleadings of old friends or business associates, desperate for their kids to be doing something a bit more productive than exchanging not-so-profound reflections about the world on Facebook when not studying.

And, of course, the lazy propensity in all of us encourages us to bring into our own work environments the children from the backgrounds and families we know, rather than someone whose credentials are only on paper.

So I was intrigued by an email from a London-based charity, which was forwarded to me by an outraged well-heeled parent.

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Many people will be shocked by the idea that money can so directly and crudely secure possible career advantage for the children of the rich”

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This charity has taken the ancient practice of trading summer internships for assorted favours to its logical conclusion: it has created a market in them.

The charity is called the Second Half Centre, a drop-in centre for older people in London, and it is the brainchild of Jill Shaw Ruddock, a former banker and author of a book that accentuates the positives of life after menopause.

Prospective bidders

The enterprising Ms Ruddock persuaded seven businesses - in finance, fashion, architecture, art and publishing - to offer work placements which she could auction.

The participating companies are Net-a-Porter, ISSA, Oppenheimer, Man Group, Amanda Levete Architect, Peters Fraser & Dunlop and the Gagosian Gallery.

Her note to prospective bidders said:

"You may have already organised work experience for your son or daughter, but you probably have quite a few friends who haven't yet. I would be grateful if you could either PLACE A BID or FORWARD THIS EMAIL on to friends who have children 16 years of age or older...

"Please start the bidding at whatever level you think appropriate... Any internship can be secured immediately with a firm bid of £5,000".

So there you have it: the market price of a short internship for a teenager is £5,000. And after the auction closed, Ms Ruddock had raised around £30,000 (so her representative told me).

Now to state the obvious, many people will be shocked by the idea that money can so directly and crudely secure possible career advantage for the children of the rich.

To be clear, spending a week with Man Group or Oppenheimer is no guarantee of a future massive income in the City. But it provides the intern with valuable knowledge and contacts. And it looks good on a CV.

So the five grand does buy a leg up. And to state the bloomin' obvious, if all internships were sold, then those brought up in social housing or on council estates could say goodbye to any hope of obtaining direct personal experience of work in a top company while young.

The dad who sent me Ms Ruddock's email felt nauseated by the trade.

Honesty and clarity

But I am not sure his reaction is reasonable. He routinely gives a few days desirable work experience in his own respected and high-paying firm to the children of chums.

Money may not be changing hands in his case, but there is still the valuable if intangible trade in favours owed and given.

There is an argument that Ms Ruddock has simply brought some honesty and clarity to this transaction - and made some money for a good cause in the process (she says she has to find imaginative ways to raise money, because only 10% of her funding comes from the public sector).

What she has shown, arguably, is that the process of allocating internships is staggeringly inefficient and unfair, reinforcing the advantages of the haves and further marginalising the have-nots.

Many would say that when a summer work placement can be sold to the rich for £5,000 a go, it shows that the system of allocating desirable placements badly needs cleaning up.

 
Robert Peston, economics editor Article written by Robert Peston Robert Peston Economics editor

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  • rate this
    0

    Comment number 405.

    No banking reform, no change from the norm, same old same old.

    Anyone watch the pageantry (pantomime) of the Queens speech. What a diabolical waste of money.

    The ordinary man/woman had been born into serfdom in Britain. The welfare state has been massively abused, those who pay in don't get value for money, those that don't do.

    Britain's economy has been a slow motion car crash for 30yrs+

  • rate this
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    Comment number 404.

    As to the article itself - there has always been "the haves" and the "have nots". It was also the case that UK had (still has?) the "class system" that is none too far removed from "India's Caste System".

    Since feudal times, any lower class reaching the dizzy height of wealth still was not respected.

    Nadine Dorries:
    "two arrogant posh boys who don't know the price of milk"

    Works both ways;-)!

  • rate this
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    Comment number 403.

    I would be pleased if the BBC would conduct an impartial costing

    To see how much it actually costs just to EXIST in the UK.
    This is to estimate a living wage that can ensure all of modern necessities are paid for.

    Water Fuel Food Rent is normal but what about Council tax benefits?
    These should have to be paid IN FULL.
    A "minimum wage" should be inclusive of benefit costs needing to be paid.

  • rate this
    +1

    Comment number 402.

    My parents were a groundsman, and a housewife. I'm one of 8 kids, now in my mid 30's. All kids are working and paying tax.

    I went to Uni despite my dad wanting me to get a job at 18. I paid for it, got a 1st class degree from Leeds in Biology, then a Masters in Comp.Sci and worked for eight years at GSK. Then they outsourced most jobs to India. No point pushing yourself working class kid.

  • rate this
    0

    Comment number 401.

    400 FG - I apologise. Not offended just tempted to hyperbole. At the heart of the matter I suppose I cant get that worked up about internships but I've never been on the receiving end. For me a bigger issue is the allocation of capital to SME's and setting up a gold star technical education - which should be rebranded - ('apprentice' gives the wrong messages) and yes improving management skills.

 

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