Internship Planning: Cultivating your company's future

November 14, 2024

Note: This blog was updated with new information and insights on November 14, 2024. It was originally published on August 9, 2023.

What's New:

Updates on job outlook trends
New data on current internship experiences
Revised information on internship benefits
Metrics for evaluating the success of internship programs

HR professionals know that internships are a vital part of an organization’s talent development program. It’s an opportunity to bring fresh eyes and skills into the company workforce and mold mentorships that can secure employer relationships for the long-term. Ideally, internships can feed a business pipeline with top talent that transforms into the company’s leaders. According to The National Association of Colleges and Employers (NACE), internships offer the highest return on investment (ROI), because interns who are hired tend to onboard and train more quickly and are retained at higher rates compared to non-intern employees. In fact, over 70% of interns receive job offers from their internship organizations, with 80% of those offers being accepted¹—highlighting how internships help build a strong and dedicated team.

With the current shifts in workforce expectations and the competitive job market, effective internship programs are more crucial than ever. Forbes.com highlights that “The U.S. white-collar job market is experiencing a significant squeeze, creating a challenging landscape for professionals seeking new opportunities. With fewer job openings available, the balance of power has tipped in favor of employers in the labor market, encouraging companies to become more selective by raising their expectations and requirements for potential candidates.” A well-designed internship program allows companies to cultivate a skilled talent pool early, helping them attract and retain top candidates while giving interns the valuable experience needed to stand out in the tight corporate job market.

A good place for businesses to start is to consider a few questions: Is the company proactive or reactive in competing for today’s top college or university recruits and fulfilling specific business needs? Does it publicly showcase the value it places on its internship program? And does it foster a positive, diverse and inclusive company culture as well as lead with emotional intelligence for all employees?

Not all internships are created equal

Depending on a company’s size, location, culture and core business, internship programs can vary dramatically. Recent data highlights key trends in internship experiences:

Over 75% of internships were in person²
The median time worked in an internship was 13 weeks³
74% of students were extremely or very satisfied with their internship, in part because of strong supervisor support and mentorship⁴
Approximately 21.5% of college students complete internships each year, totaling around 4.17 million participants⁵
19% of internships were in the financial industry, making this the most popular industry for interns⁶

The most common benefits included:

For U.S. Domestic, some level of payment of wages or salary through a one-time lump sum allowance or short-term housing; national data shows that 60.8% of internships are paid, while 39.2% remain unpaid⁷
When housing is provided, companies offer assistance with either accommodation arrangements or a housing stipend (or the option to choose between the two); 23% of companies offer a housing allowance⁹
50% of companies offer payment or reimbursement of travel expenses⁸
Support services can include reimbursement or direct billing for housing expenses, roommate selection assistance for shared accommodations and immigration assistance for international interns
For virtual assignments, some organizations extend benefits such as home office equipment, software or a Wi-Fi allowance

Not surprisingly, along with every component of an internship, there is an added layer of complexity for planning, administering and measuring the effectiveness of your program. The logistical aspects can be successfully managed by engaging the appropriate service providers; however, the emotional aspect goes much deeper. For many students, significant barriers like limited access to internship information (with 59.4% reporting difficulty finding opportunities) and financial constraints prevent participation, even in paid roles¹⁰. For those who do secure internships, consider the challenge of accepting an internship, living hundreds of miles away from home for the very first time without family or friends nearby. For these types of intern relocations, a dedicated relocation consultant is especially crucial to make sure your intern does not feel anxious or overwhelmed with the details of the move.

Before and during all internship relocations, caring and clear communication will be key to ensure a smooth relocation and successful program. Clearly defining expected outcomes before the internship season begins will also be necessary to determine how the program’s success will be accurately measured at its completion. This could include a certain number of full-time hires that result from the program or meeting specific budget targets. Even if the average duration is only two to three months or is a virtual assignment, an internship is still a complicated, time-consuming process that can lead to undesirable outcomes if not handled with great care.

Ownership and accountability – who’s taking the lead?

Owning the internship program and being accountable for its outcome is another important consideration. Sometimes internship programs within a company are managed by multiple departments, so it’s important to know: Where does the process start and who manages the planning details? Does it begin with recruiting/talent acquisition, HR or does the business unit take the initiative independently? Who owns the policy and are the budget guidelines known and agreed upon by all stakeholders? While not typically their primary role, HR and mobility professionals are often expected to collaborate with hiring managers to find, recruit and onboard the best-of-the-best college and university students to participate in internship programs.

If that’s the case at your organization, below are some key points to consider when creating or improving upon your own internship program:

Collaborate with your stakeholders to establish a formal policy or program guidelines for consistent use across global regions and business sectors or units. According to Forbes.com, it’s important to clearly define the work project objectives that align exposure and experience for the intern with meaningful business objectives.
In conjunction with your internal stakeholders, create and publish an official timeline for onboarding and offboarding your interns
If your program includes internships for international students, start the process even earlier – at least a year in advance to accommodate for housing and immigration assistance for global programs
For HR professionals — collaborate with your stakeholders and global mobility team to bundle the volume of services needed to maximize your company’s investment
For mobility professionals — work with your relocation services provider:
- To create an internship program that leverages the best structure that works for your company and leverages a vetted network of reliable supplier partners
- For technology solutions and clear and compliant reporting on your company’s program spend and performance KPIs to ensure a maximum return on your program

Best practices – putting it all together

Once all of your program components are identified and agreed upon by your stakeholders, the mechanics of administering the services also need to be clearly outlined and communicated. To accomplish the ultimate goal of attracting those talented students to your program means that their onboarding experience also needs to feel effortless and welcoming.

Start early - If you want your interns to report to work and be ready go on day one, consider the sample milestones below in preparing your own proactive timeline:

Plan – Know what the goal of the business is and craft your program accordingly. Attracting top talent in highly competitive areas of expertise may mandate a richer mix of benefits. For example: Consider whether a travel allowance (public transportation pass) or meal stipend may be in order and whether single room housing or roommate scenarios would be appropriate. Think about enjoyable activities and corporate outings you’ll want to create for the internship population – or include them in.

Communicate Clearly - Establish a clear policy or guidelines document outlining what is and isn’t offered to eligible candidates—and educate internal stakeholders who hire or mentor interns to avoid misunderstandings and manage expectations. Once hired, focus on providing interns with a valuable and fulfilling experience by arranging opportunities to meet with senior leaders, teaching networking skills and demonstrating the company’s core values, goals and objectives. Foster a diverse, equitable and inclusive environment, while conducting regular check-ins with interns, surveying them at the beginning, midpoint and end of the internship to ensure ongoing engagement and satisfaction.

Evaluate - Measuring the success of an internship program is essential to ensure it meets both organizational and intern expectations. Key performance indicators (KPIs) such as conversion rates, satisfaction scores, retention rates and diversity metrics offer valuable insights into program effectiveness. Many organizations also conduct formal performance evaluations to assess intern contributions and growth. According to data from Strada, high satisfaction among interns is strongly linked to programs that emphasize support, skills development and mentorship¹¹. By focusing on these elements, companies can create impactful internships that benefit both interns and the organization.

Need help planning for your next round of corporate internships? Get started now!

A well-designed internship program can increase brand awareness among colleges and universities and attract bright, new talent. And in today’s competitive job market, internship programs have become even more critical. As your organization begins to plan its internship program, remember that, by providing an exceptional experience to your interns, you’re also building your organization’s future. To help you get started, we’ve provided a detailed checklist for you to plan, manage and assess your own internship program.

Contact us for help creating exceptional experiences for your interns so they can perform their best and contribute to the long-term success of your organization.