Case Study of the Week: Paid vs Unpaid Internships

Oct 9, 2023

Business Ethics

You are to assume the roles of the director of human resources and the director of employee relations at Cromwell Realty, a large real estate agency located in a major city. The president of the company wants to begin offering unpaid internships to staff open positions and wants your feedback.

Cromwell Realty is the largest commercial and residential real estate agency in the area. There are over 50 agents that work at Cromwell, along with support staff. Cromwell’s real estate agents are desperate for the company to hire additional support staff, but there is not enough budget to accommodate.

The support staff meet prospective clients before the agents to discover client needs, desires and budget. The support staff also schedules showings, helps prepare properties for showings and open houses, answers calls and emails, and works with mortgage brokers and closing companies.

The president of Cromwell wants to hire five unpaid interns to serve in the support staff team. The president feels this will be a great opportunity for students that are working toward their real estate license.

Over 40% of all internships are unpaid; however, the president has asked your team to determine if it is ethical to have unpaid interns doing the same job responsibilities as other support staff that are paid. The president wants your team to explain:

  • The benefits of an internship
  • Employer expectations of unpaid interns
  • Methods to recognize/reward interns to make the internship valuable
  • Additional opportunities for interns to receive real estate experience

Questions?

Randi Bibiano
Competitive Events Specialist
randi@deca.org

Randi Bibiano is DECA's competitive events specialist. In this role, she conceptualizes and authors role-play scenarios for the collegiate and high school division’s competitive events programs. She also manages DECA's online competitive events and serves as a liaison to volunteer efforts at DECA's educational conferences.

Discussion Questions

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Classroom Connection

Career CLuster:

Business Management and Administration

Instructional Area(s):

Professional Development

Performance Indicators:

Describe managerial considerations in staffing
Analyze employer expectations in the business environment