Offering internships can be an excellent way for companies to identify and develop future talent, but offering paid internships can take the experience to the next level. As a job agency connecting companies with students and postgraduates looking for internships, it’s important to understand the benefits of offering paid internships.
A research by the National Bureau of Economic Research found that paid internships increase the likelihood of employment after graduation, with paid interns being 8% more likely to be employed and earning 11% higher wages than their peers who completed unpaid internships.
According to a survey conducted by the National Association of Colleges and Employers (NACE), 60% of employers offer paid internships, and those employers were more likely to convert their interns into full-time hires. And also that the median hourly wage for paid interns in 2020 was $19, up from $17 in 2018. Here are some reasons why paid internships can be a smart investment for companies:
Attract the best talent:
Offering paid internships can help companies attract the best talent. Students and postgraduates are more likely to apply for paid internships because they see them as more valuable and rewarding.
Increase motivation and commitment:
When interns are paid for their work, they are more likely to feel motivated and committed to the company’s goals. This can lead to better performance and a higher quality of work.
Build a positive reputation:
Companies that offer paid internships are often seen as more reputable and desirable places to work. This can help to attract not only interns but also full-time employees.
Develop a talent pipeline:
Offering paid internships can be an investment in the future of the company. Interns who are paid for their work are more likely to return as full-time employees, providing a pipeline of talent for the company.
Provide valuable experience:
Paid interns are more likely to be given meaningful and challenging work, which can provide them with valuable experience in their field of interest. This experience can help them to be more successful in their future careers.
Legal compliance:
Offering paid internships can help companies comply with federal and state labor laws, which require that interns be compensated for their work if they perform duties similar to those of regular employees.
A survey conducted by Glassdoor found that 90% of job seekers value paid internships when searching for opportunities, and that paid internships were one of the top factors that candidates consider when evaluating job offers.
Another survey by the Internship Institute found that companies that offered paid internships had a higher retention rate of full-time employees than those that did not offer paid internships. These statistics demonstrate the benefits of offering paid internships, including increased likelihood of converting interns into full-time hires, higher retention rates of full-time employees, and increased value to job seekers.
In conclusion, offering paid internships can be a smart investment for companies looking to attract and develop future talent. Paid internships can help companies attract the best talent, increase motivation and commitment, build a positive reputation, develop a talent pipeline, provide valuable experience, and comply with labor laws.
As a job agency connecting companies with students and postgraduates looking for internships, it’s important to encourage companies to consider the benefits of offering paid internships and help them to find the right talent for their organization.
