Why You Must Have an Internship Program Part 2 - Costs
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The Time is Worth It
Think again if you think you don’t have time to start and manage an internship program.
Interns help you hire great raw talent and fill gaps as you have turnover.
Yes, you are very busy.
However, the time invested in a well-managed internship program yields huge dividends annually.
Time investment is as follows:
Program Development
Educational Institution Engagement
Recruiting
Hiring
Onboarding
Training
Managing
Mentoring
Ongoing Relationships
Program Evaluation
Don’t let this overwhelm you.
The actual time it takes your team to implement and manage an internship program depends on the number of educational institutions you engage, and how many interns you manage simultaneously.
Our Clients typically hire 2-4 interns at a time. This shortens the time per intern for training.
Recruiting Costs
It is standard procedure in many countries to involve a recruitment vendor in your search for top college students.
America is different, where most companies recruit on their own to avoid paying recruiting fees and remove middlemen from their relationships with potential college or even high school interns.
Recruiting is the Attract phase of Hire the Best. Here is an overview of the time and expense involved when you are marketing, networking, and scouting for interns.
Marketing costs for brochures, advertising, recruiting fairs...
Time to develop relationships with educational institutions and appropriate professors.
Presenting in and/or supporting class activities.
Entertaining candidates.
Networking, always networking.
Compensation and Benefits
Benefits are not typically offered to interns, except possibly paid holidays, because the relationship is initially short-term. Long-term internships may include benefits depending on the hours worked, or when the internship morphs into a 20-30 hour part time role.
One exception is when the intern is not local to your firm, and you decide to offer a housing and/or relocation assistance benefit.
Compensation varies based on the laws of your nation or state, and the intern’s educational institution.
Some companies prefer to work with universities that require their students to do internships for free because the students are receiving class credit for the work.
In cases where interns are being paid for their work, there are no legal standards. However, be fair. You communicate a lot about your team by the way you compensate everyone, including interns, for their contributions.
Here are the most common intern compensation plans we have experienced and researched:
One-half the rate paid to a full-time person.
Rates as high as 80% for college seniors and 75-90% for graduate students.
Compensation is not the primary attraction for interns. Top interns are primarily motivated by four aspects of working with your organization. They want to:
Gain career experience by applying and expanding their skills to make meaningful contributions, even at a low level, to actual client projects;
Develop their value as a career player for a future full-time position;
Feel accepted, as a valued team member; and
Experience your company’s career opportunities and culture, so they can consider future full-time employment with your organization.
Training
In most ways, treat interns like full-time members of your team.
Interns should receive the same orientation training you provide full-time employees because they are being held to the same standards.
As part of their orientation, they should have an employee strategic plan (“SP”) with draft target goals and development objectives.
Targets should be clear, measurable, and have scheduled milestones to achieve.
Development plans should have regular in-person mentoring activities. They can study books and online on their own. They want to be an intern to do real work, even if it’s entry level.
Have a solid plan and follow through daily to achieve each objective on schedule.
The actual financial costs to train interns varies based on the length of the internship and how your company prefers to develop the skills of each intern.
The bottom line is interns are a great way to hire top talent before the competition has an opportunity. When you have a first class internship program, it positively promotes your organization to other potential players and clients.
If you found this interesting, watch for Internships Part 3 where we share potential negatives and positives, moving past stereotypes, and expectations!
Visit www.hirethebest.co to learn more about why you must have an internship program.
