Hiring an intern: ACCA's best practice guide for employers

16 Pages·2016·1.55 MB·English

Hiring an intern:
ACCA’s best
practice guide
for employers
(UK version)
About ACCA
ACCA (the Association of Chartered Certified
This practical guide
Accountants) is the global body for professional
accountants. It offers business-relevant, first-choice has been developed
qualifications to people of application, ability and
ambition around the world who seek a rewarding with insight from
career in accountancy, finance and management.
ACCA members and
ACCA supports its 178,000 members and 455,000 students, and has been
students in 181 countries, helping them to develop
produced as a direct
successful careers in accounting and business, with the
skills required by employers. ACCA works through a
consequence of our
network of 95 offices and centres and more than
7,110 Approved Employers worldwide, who provide social mobility research.
high standards of employee learning and
The report draws on
development. Through its public interest remit, ACCA
promotes appropriate regulation of accounting and our conversations with
conducts relevant research to ensure accountancy
continues to grow in reputation and influence. politicians, businesses,
and charities about
Founded in 1904, ACCA has consistently held unique
core values: opportunity, diversity, innovation, integrity what is needed to
and accountability. It believes that accountants bring
value to economies in all stages of development and increase social mobility
seek to develop capacity in the profession and
in the UK.
encourage the adoption of global standards. ACCA’s
core values are aligned to the needs of employers in
all sectors and it ensures that through its range of
qualifications, it prepares accountants for business.
ACCA seeks to open up the profession to people of
all backgrounds and remove artificial barriers,
innovating its qualifications and delivery to meet the
diverse needs of trainee professionals and their
employers. More information is available at:
www.accaglobal.com
© The Association of Chartered Certified Accountants
February 2016
Introduction 3
The accountancy profession plays a crucial For internships to work well for both
role in business, the economy, and wider employers and interns, it is important that
society. I am proud to lead an organisation there is a common understanding of what
whose members are on the front line of to expect, the potential benefits and
ensuring business practices are fair, required outputs. ACCA has developed
transparent, and sustainable. As the this guide to support those considering
profession develops it is vital that we taking on an intern for the first time; equally,
continue to attract the best new talent. it will help those who already employ interns
At ACCA, we are passionate about get the most out of their programme.
supporting our members and employers to
identify and develop the next generation I am delighted that this practical guide has
of finance professionals – and to been developed with insight from ACCA
broadening access to the profession so you members and students, and has been
can recruit from the widest possible pool. produced as a direct consequence of our
social mobility research. The report draws
ACCA was formed in 1904 with the aim of on our conversations with politicians,
creating opportunity by removing artificial businesses, and charities about what is
barriers to the profession. I am very proud needed to increase social mobility in the UK.
that this remains one of ACCA’s treasured
core values and we firmly believe that I hope this guide will be a valuable
anyone with the ability and desire should practical toolkit, both for our members and
have the the opportunity to become a for the broader accountancy profession.
professional accountant, regardless of their
social background. Internships play an Helen Brand OBE
extremely important role in opening up the Chief Executive
profession as a career path and attracting ACCA
new talent to the industry.
The benefits of internships 4
THE BENEFITS OF INTERNSHIPS FOR
Businesses offering internship EMPLOYERS AN EMPLOYER’S PERSPECTIVE
programmes stand to benefit Businesses offering internship programmes ‘Taking on an intern gave us a
in a variety of ways. One of the stand to benefit in a variety of ways. One of great opportunity to get to know
more significant advantages is the more significant advantages is the the potential employee without
the opportunity to identify opportunity to identify and develop future forming contractual commitments
and develop future talent for talent for your business. Interns can bring on day 1. The result was that we
fresh ideas, new thinking, and provide were able to assess a whole range
your business.
additional capacity within your business of skills that simply cannot be
when you need it most. determined at interview stage.
‘Happily, the employee surpassed
When surveyed employers listed the
expectation and we backdated a
following benefits of internships:
contract to the point at which she
joined and that was the start of a
• bring in additional resources which can
successful 10-year relationship. I
help boost capacity
would urge anyone to give someone
a chance to showcase their skills
• open the recruitment pool to a broader
for longer than the usual work
range of talent
experience periods, you never know
what you might find!’
• introduce in fresh ideas and a different
ways of thinking
Paul Bithrey FCCA ACA
• provide resource for special projects
which might not otherwise happen
IN FOCUS: INTERNSHIPS IN THE UK
• develop relations with local colleges
and universities. Around one-third of UK businesses
have employed an intern.1 Many
Internships can provide employers with an businesses, however, do not, meaning
opportunity to identify future talent. Many that a large number of employers of all
businesses go on to employ those who sizes could be missing out on the
have previously worked for them as interns benefits potentially offered through
as full-time staff. Taking on someone who opening internship opportunities.
has already demonstrated their abilities
and understands the business removes London has the highest proportion of
some of the risk and expense of recruiting businesses taking on interns. Around
new staff. one-half of businesses in the capital
either employ or have employed an
Internships are also a good way of forming intern. Wales currently has the lowest
links with local colleges and universities, proportion of businesses offering
which can help raise the profile of a internship opportunities with less than
business and help it attract future talent. one in ten employing interns.
These links can also help to ensure that
colleges and universities have a better
understanding of type of skills that
employers look for.
1 Based on a YouGov poll of over 1,000 UK businesses undertaken on behalf of Intern Aware.
Hiring an intern: ACCA’s best practice guide 3. State of the non-profit finance function 5
for employers (UK version)
THE BENEFITS FOR INTERNS
Having an internship
AN INTERN’S PERSPECTIVE
An internship provides ‘real world’ and
on their CV can really
practical experience of the workplace. It ‘I needed experience in practice
set individuals apart can provide valuable hands-on experience and wanted to show a prospective
from the competition and provide an insight into the employer what I could offer. I
when applying for accountancy profession. For some an wrote a letter to a well-known
jobs, particularly in a internship will be a first taste of working life local practice asking for a three-
so it can provide an excellent opportunity month internship and they
field as competitive as
to get a feel for the workplace and how to accepted. I was fortunate enough
accountancy. operate in a business environment. to be offered a permanent position
by the end of the internship.
Even if the internship had not
resulted in a permanent position,
I believe that it would have been a
worthwhile experience – I needed
to gain the practical experience to
understand the knowledge that I
had already acquired in my studies.
Applying theory to practice is very
different and you only become an
accountant when you do so. I would
do it all over again if necessary.
‘I have now gained my ACCA
qualification and hold a position
in an international company in
London where I act as a European
Project Accountant with exposure
to different aspects of accountancy
from leading audits and tax
investigations to monthly and
yearly management and financial
reporting for both internal and
external stakeholders.’
Those who have completed an internship
cite exposure to an accountancy role and
Corinna Biermann
the general workplace experience as
Ranir Ltd/Ranir Group
significant benefits.
Internships provide an excellent opportunity
to bridge the gap between academic and
88 working life. Having an internship on their
CV can really set individuals apart from the
% competition when applying for jobs,
particularly in a field as competitive as
accountancy. In some instances internship
of students surveyed would recommend
activities can even count towards attaining
an internship to friends and family
the ACCA qualification.
The survey showed that students really do
value the experience an internship
provides and 88% would recommend an
internship to friends and family.
A practical guide 6
THE FIRST STEPS TO HIRING AN INTERN
The first step is to get a clear SOME PRACTICAL TIPS:
Understanding the needs of your
understanding of how an intern
organisation • Who will be responsible for
will fit into your business –
The first step is to get a clear understanding supervising/mentoring the intern?
what will their role be and how of how an intern will fit into your business
can they contribute to your – what will their role be and how can they • What projects or activities will the
company’s goals. contribute to your company’s goals. intern work on? Be as specific as
possible and be realistic with your
To help you with this you might want to expectations on what can be
consider the following questions: delivered in the time the intern is
working for your company/
• What does your organisation hope to organisation.
achieve from the internship?
• Talk to others in your company/
organisation when drawing up a
• I s your organisation looking to fill a need
work plan for your intern and ensure
on a specific project or in a specific role?
you have the relevant agreement
from senior managers/HR before
• Will the internship focus on one major
seeking to recruit.
project/role, or cover a variety of small
projects/roles?
• Decide and confirm the logistics
– such as where your intern will be
• At the end of the internship what
based, whether you will need to
would you expect the intern to have
alter your workspace to
achieved/delivered?
accommodate an intern, what IT
equipment will they need to be able
• If your organisation is searching for
to carry out their role?
new part-qualified and qualified
accountants, how will you frame your
internship to identify and develop future
accounting talent?
Hiring an intern: ACCA’s best practice guide A practical guide 7
for employers (UK version)
WHAT ARE INTERNS LOOKING FOR? challenged. The main issue identified in
Interns are seeking
unsuccessful internships was the intern not
Interns are seeking opportunities that
opportunities that having enough work or appropriately
stimulate their interest in the accountancy
stimulate their interest challenging work to keep the intern
profession and provide real-world
interested and engaged.
in the accountancy experience. For those who had
profession and provide completed an internship, our survey
In terms of day-to-day work successful
real-world experience. reports that the experience had the internships tend to be structured as follows.
greatest influence in helping them reach
an informed decision on pursuing a
1. Project work: this can be a special
professional accountancy qualification.
analysis or project that will require the
intern to use and develop their
A meaningful, purposeful internship will:
accountancy skills. This should form the
major part of the intern’s work, for
• provide challenging projects and tasks
example, the intern may assist with a
system implementation project.
• give interns focused, purposeful roles to
keep them motivated
2. General work: this will be ad hoc
work that will give the intern a better
• give them a broad exposure to the
understanding of day-to-day
organisation
operations in your business and in
the workplace more generally. It may
• provide supervision and mentoring
involve assisting colleagues with routine
tasks, which could help give the intern
• set clear goals and objectives for the
a better understanding of how the
intern to achieve.
company operates.
WHAT TYPE OF WORK DOES AN 3. R eactive work: this might involve helping
INTERN EXPECT? out with non-planned work that needs
An essential part of a successful internship an urgent response. Dealing with urgent
is deciding what kinds of work and projects issues is an important part of working
the intern will do. Interns want to be life so it can be valuable experience.
WHAT IS THE DIFFERENCE BETWEEN WORK EXPERIENCE, INTERNSHIPS AND
APPRENTICESHIPS?
Work experience offers an opportunity for individuals to observe and get a feel for
working life within a company or organisation. Work experience opportunities
normally run for a very short period (normally no longer than two-weeks). Often work
experience will involve an individual shadowing and employee to get a better
understanding of the work they do, they may be given simple tasks to complete
while on work experience but will generally not have full access to internal systems.
Work experience opportunities are normally unpaid.
Internships will last for a longer period than work experience opportunities. An
intern will be brought in to assist with specific business related tasks. Employers
should provide interns with a simple contract, which sets out the terms of their
employment. As interns will be delivering a service to the employer they should be
paid for the work they do.
Apprenticeships combine practical training in a specific job with study. Apprentices
will work alongside experienced staff and gain job-specific skills while studying for a
related qualification. Apprenticeships can run from 1 to 4 years depending on their
level (which align to different education levels, such as GCSE level or degree level).
There will be certain obligations on both employers and apprentices, for example,
employers will need to be able to let apprentices attend classes and take study
leave. From 2016 there will be an Accountancy Apprenticeship available as part of
the Government’s Trailblazers initiative.
Hiring an intern: ACCA’s best practice guide A practical guide 8
for employers (UK version)
TECHNICAL TASKS FOR INTERNS CHOOSING THE RIGHT LENGTH AND
Internships should fit
TYPE OF INTERNSHIP
We surveyed a number of firms who take on
the needs of the business
accounting interns and Figure 1 sets out the Internships should fit the needs of the
and provide the intern
types of tasks assigned during the internship. business and provide the intern with
with meaningful meaningful professional experience. Many
professional experience. Bank reconciliations, accounts preparation, factors will determine how long an intern is
data entry, and general administrative/office employed for, but consideration should be
duties are the most common routine tasks. given to how long it will take for an intern
to get to grips with the role and deliver
For project-based work the following their objectives.
tasks are examples of more in-depth
technical assignments:
IN FOCUS: INTERNSHIPS IN THE UK
• ad hoc accounting projects, this could
Findings from an Intern Aware poll
be a discrete project to meet business
(carried out by YouGov) found that the
needs, or a sub-project that feeds into a
duration of internships across the UK
larger project
varies significantly, ranging from less
than 1 month to over 1 year. The
• business analysis
findings found that most
apprenticeships in finance and
• preparation of tenders
37
accountancy lasted for up to 2 months
(37%), 21% lasted between 2 and 6
• gathering market data and running
% months and 10% last for up to 1 year.
analyses and reporting on findings
of apprenticeships in finance and • hedge fund accounting, including
accountancy lasted for up to 2 months preparation of net asset values for clients.
Figure 1: W hat tasks are the interns normally responisble for?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
General admin/office duties Data entry Bank reconcilliations Stock taking Audit Payroll Accounts payable Accounts receivable Taxation Accounts preparation Costing and pricing
Hiring an intern: ACCA’s best practice guide A practical guide 9
for employers (UK version)
In terms of their general characteristics SHOULD AN INTERNSHIP BE PAID?
Remuneration is highly
internships can be broadly categorised into
Internships are a cost- and time-efficient
recommended and the following types.
way of bringing new talent into your
increasingly seen as
organisation.
best practice across • P roject-related internships: initiated to
lead or assist with specific short-term
the industry. Remuneration is highly recommended and
projects. When designing a project-
increasingly seen as best practice across
related internship, the timeframe, as well
the industry. An internship should be as
as objectives, must be clearly defined.
close to a real life work experience as
There should be a set end-date, with
possible and, of course, being paid is a
defined outputs that must be delivered.
core part of this. A paid internship is more
likely to ensure that you are able to attract a
• Summer internships: often lasting 3
high calibre and engaged intern. It will also
months or less and designed to fit with
ensure that your programme is inclusive as
student holidays. Summer interns can
it will not deter those who are less able to
provide cover for full-time staff during
cover the costs associated with working,
the summer holiday period and are
such as travel, food, and office clothing.
therefore often an attractive option for
employers. If you are considering taking
on a short-term internship it is important OTHER FORMS OF BENEFITS
that you set tasks and objectives that You may wish to consider offering benefits
are achievable in the time the intern is in addition to pay to act as an incentive for
working for you. attracting talented interns. Examples of
such benefits include:
• Multi-year or semester internships:
interns may work for you for specific • contributions towards study and
periods, during holidays, or for specific exam costs
times of the year. Such arrangements
will require flexibility in terms of • study and/or exam leave
accommodating an intern and task
setting over a longer and non- • paid or unpaid holiday entitlement
continuous period. The advantages, (depending on the length of the
however, are that these longer-term internships).
internships provide ample time for the
intern and the business to learn from
one another, accomplish goals, and
create an deliver projects.
IN FOCUS: INTERNSHIPS IN THE UK
65
The majority of businesses surveyed pay their interns. Many were found to pay at
least the minimum wage and a significant proportion of those surveyed (38%) paid
%
the National Living Wage. The majority of senior decision makers (65%) within the
businesses surveyed felt that paying at least the minimum wage was the right thing
of senior decision makers within the to do. Many felt that the reputation of the business could be harmed if they were
businesses surveyed felt that paying seen to pay interns less than the minimum wage. For others, paying interns was seen
at least the minimum wage was the as a way of attracting the best candidates.
right thing to do
Hiring an intern: ACCA’s best practice guide A practical guide 10
for employers (UK version)
RECRUITING AND HIRING YOUR INTERN
Internships should be
IN FOCUS: INTERNSHIPS IN THE UK
Internships should be advertised openly
advertised openly and
and transparently to ensure you attract a When recruiting interns many
transparently to ensure broad pool of applicants. businesses recruit from local colleges
you attract a broad pool and universities. This can build good
of applicants. ACCA can help you advertise internship links and help businesses to identify
roles through our ACCA careers jobs board and develop a source of future talent.
(https://jobs.accaglobal.com) where there Good relations with local education
is a dedication section for work placements providers can also help to ensure
and internships. young people are developing the right
skills required by businesses. It is still
As with any recruitment process you should advisable to advertise intern posts as
be clear on the type of person you want to widely as possible to ensure that you
recruit and the type of work you want them do not miss the best talent available.
to do. This will help you attract the right
people to the role.
ACCA’s survey of businesses found that
Key tips for advertising an internship: over one-third of those taking on interns
recruit from their own network of family
• be clear on what you are looking for in and friends. While this may seem like a
terms of knowledge, academic simple option you are likely to be limiting
background, experience, and skills (if the breadth and depth of the talent pool
you are seeking specific technical skills from which you can recruit from. ACCA
be clear on what you want) recommends that you advertise your
intern posts openly as this will help ensure
• be clear on the purpose and the desired you get the best person for the job.
outcomes of the internship (this can form Advertising internship posts openly is
the basis of a job description for the role) important in promoting social mobility, by
advertising the role you can be sure that
• y ou might wish to speak to local colleges you are not inadvertently shutting out
and universities as they may be able to prospective applicants.
help identify prospective candidates
You may find that people seeking
• try to keep the advertisement internship opportunities contact you.
interesting – be clear and avoid any This is good way to build up a list of
unnecessary jargon prospective candidates (even if you are
not recruiting at that time acknowledge
• advertising paid internships will likely their request and keep their details).
increase interest in the position
• provide a little information about your
organisation, including its goals and
purpose
• be clear on how to apply and set a
deadline for applications
• provide contact information for any
questions.