I have been involved with internship programs for many years. I have managed the program for 2 companies and have helped many other companies start or improve their programs. In those years I have seen the tremendous positive effect an internship program can have on a company or organization. I consider myself a champion for the cause of internship programs.
I must clearly state that I personally have a problem not paying an intern in a normal business situation. In my years involved with internships I have not seen an internship that did not bring value to the business. If the intern brings value to the business, they should be allowed to share in the gain.
I would like to see this conversation about paid versus unpaid to be changed to return-on-investment (ROI). I have witnessed tremendous value derived from a well instituted internship program. Some internships have been for-credit, others have not. That is not the question. A well instituted program will bring ROI. If that is true, the intern needs to be paid. After all, slavery was abolished 150 years ago.
An internship program can bring the following returns:
• Reduced turnover by allowing a “4 month interview”
• Allows a controlled development program for potential new staff
• Gives a business a perpetual source of new full-time talent
• Creates “flex” in the business cycles of “ups and downs”
• Allows managers to focus on critical aspects of the business by moving work down the “chain”
I have witnessed turnover reduced from double digits to less than 2% simply by recognizing the value of the “4 month interview”. During an internship you will clearly understand if the intern has the attitude and abilities needed to become a full-time staff member. Can you really determine a candidate’s “fit” in the normal 3 or 4 interviews that typically last 30 minutes each? Think about the normal interviewing process taking around 2 hours in a “best face forward” situation compared to 4 months of day-to-day interaction. Which do you think would create lower turnover?
Internships are an inexpensive future staff development program. The intern is obviously paid less than a staff member. If you see this as training time for the future employee, it reduces the cost of training.
Having interns in every area of a business allows the business to have a continuing source of candidates for future full-time staff. When you need to add a full-time employee, you will have many to choose from. Interns are also your best “recruiters” on their campus. If they have a great experience, all their friends will know it.
We all experienced the “down” side of the economic cycle. In 2009 it was a much easier choice to eliminate an internship position instead of release a full-time employee. Now that we are in the “up” side of the cycle, will you ever really have growth so fast you need to go from 6 to 7 full-time employees in a given area of your business? Don’t you really just need 6 ½? This is a perfect place for an intern. If your growth continues, you will have your full-time candidate in your business and potentially already trained.
To me the biggest ROI is moving work off of managers’ desks and giving them time to invest on projects they currently “don’t have time to do”. Over the last few years we have discovered that most employees have work they do every day that is actually “below their pay grade”. If you complete a review of an area of your business, you will typically find you can move a total of 20 or more hours from your employees’ desk onto an intern’s desk. If you paid that intern $10/hour, it would cost you $200/week to free up 20 hours for current employees. Do you believe your managers could put more than $200/week on the bottom line with this freed up time? I have seen it happen over and over.
My answer to the question of paid versus unpaid internships is to change the paradigm. Businesses need to see internships are a profit center, not a cost.
Christian Life Coach 