Paid but underpaid: Stipend and work productivity among graduate interns

Abstract

Graduate unemployment is one of the major socio-economic development problems in South Africa and many other developing countries. Previous research has described various factors causing graduate unemployment, one of which is a lack of relevant work experience. Internships are increasingly supported to address this problem. However, internships have been criticised for being exploitative, illegal, and unjust. This paper seeks to present a new perspective on internships. It seeks to examine the perspectives on the impact of stipend level on graduate intern work productivity. Thus, the objectives of this study are to: explore the impact of stipend level on the work productivity of graduate interns; explore the exploitative nature of internship as perceived by participants; and explore the concerns of graduate interns over compensation. This study is qualitative and exploratory in nature. Fifty semi-structured interviews were conducted with interns, mentors, and HR managers at eThekwini municipality, Durban, South Africa, to address these research objectives. Data from interviews was analysed through content analysis. The results indicate that there is a relationship between the level of stipend earned by interns and their work productivity. This study found that low pay is associated with low work productivity. Therefore, work compensation is the primary motivator of productivity, not only for full-time employees but also for graduate interns.