Internship innovationJAMIE STACEY

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At a crossroads, students, colleges, and employers must renovate experiential education opportunities if they want to succeed in the 21st century.

When education is the only highlight on their résumé, graduating seniors stand little chance of attracting the attention of employers.

In the United States, 1.6 million students expected to earn a bachelor’s degree

this year, according to the National Center for Education Statistics. Factor in the

competition fostered by a global economy, and the number of new graduates vying for

employment grows exponentially.

“If students don’t have the opportunity for internships or work experience, they will be

at a deficit,” says Marv Russell, HR professional and author of Finding Your Internship:

What Employers Want You to Know.

Research from the National Association of Colleges and Employers (NACE) supports

that view:

• 52 percent of seniors receiving job offers before graduation held internships,

according to the Class of 2014 Student Survey Report.

• Employers made full-time offers to 64.8 percent of their interns though fewer interns

accepted the offers in 2014 (79%) than in to 2013 (85.6%), according to the NACE

Internship and Co-op Survey.

INTRODUCTION /03

“If students don’t have the opportunity for internships or work experience, they will be at a deficit,” says Marv Russell …

In addition, the NACE Internship and Co-Op Survey reported that employees who

interned or completed a co-op at their employer were more likely to be working for the

company between one and five years later, when compared to their co-workers. That’s

a significant benefit for employers, who not only retain that worker’s knowledge, but

avoid the high costs associated with hiring a new employee.

While everybody agrees that internships are a prime differentiating factor—a

“must-have” for college graduates—the number of internships is declining. In 2014,

employers in two-thirds of the industries surveyed by NACE said they were hiring fewer

interns, resulting in a 3.4 percent decline.

NACE researcher Kenneth Tsang says there isn’t a definitive answer to explain the

decline, but he offers three possible contributors:

• Recent litigation and negative media attention over unpaid internships have

dissuaded employers from hiring any interns, for fear of facing similar lawsuits.

• Students are opting for higher-paying part-time jobs, like bartending, because

intern salaries have stagnated in the last few years.

• The Affordable Care Act requirements for employer-provided benefits make

internships cost-prohibitive.

INTRODUCTION /04

In 2014, employers in two-thirds of the industries surveyed by NACE said they were hiring fewer interns ….

The drop in internships is a big problem for colleges and universities because students

more frequently cite “to get a job” as their primary reason for attending college, rather

than “to learn” or “to get an education.”

“If a student invests in education, there better be something at the end of those four

years,” says Kevin Hewerdine, director of career services and employee relations at the

Rose-Hulman Institute of Technology.

So if the goal of colleges is to recruit students, the goal of students is to get a job,

and the goal of employers is to hire well-qualified workers, how can these parties align

to benefit everyone? It requires an internship intervention, challenging preconceived

notions and renovating the internship into an experience that benefits students,

colleges, and employers alike, says Jocelyn Lincoln, Vice President of Recruitment

Operations for the Americas at Kelly Services Inc.

The days of internships focused on grunt work—getting coffee and filing endlessly—

should be gone. “Internships should be more experience-focused. Bring in students

and give them a significant business challenge,” Lincoln advises.

In this ebook, you will learn what innovative colleges, students, and employers are

doing with their experiential practical learning to succeed in the 21st century.

INTRODUCTION /05

“Internships should be more experience- focused. Bring in students and give them a significant business challenge,” Lincoln advises.

/06

Engineering the internship

“Internships truly play a vital role in students gaining hands-on practical experience in their chosen field,” says Jennifer Williamson, director of academic and career advising at University of Wisconsin—Platteville. “They gain valuable experience in what it’s going to be like to work in their field, what the daily routine is like, and what to expect in the environment.”

Although she works with students in many fields, Williamson points to engineering as an

industry that understands how to create effective internships. “They truly embrace what

an internship is. They see the value in engaging students who are going to become their

co-workers, their colleagues, and representatives of the field. So they want to ensure

that—through the training, hands-on experience, and other activities—they are truly

helping and promoting the profession to the students,” she says. “It requires more than

just saying, ‘Yes, I’ll take an intern.’”

Williamson explains that, unlike practical work experience, an internship must be more

structured—an educational tool. Like many other schools, the University of Wisconsin

requires students to have a faculty adviser, who ensures the student truly is gaining from

the experience and can help facilitate discussions if problems arise.

/07ENGINEERING THE INTERNSHIP

“It requires more than just saying, ‘Yes, I’ll take an intern.’”

/08

Starting early

STARTING EARLY /09

At the Rose–Hulman Institute of Technology, recognized as one of the best departments in the United States by BestColleges.com, students are introduced to the concept of internships two weeks into their first year.

“Culturally, the expectation is that students have multiple experiences before their

senior year, and that view is really coming from corporate America. Students who don’t

have that internship experience are really behind the eight ball when they are seniors

searching for their first full-time job,” says Hewerdine, from Rose-Hulman.

In 2014, 95 percent of Rose–Hulman graduating seniors had at least one internship,

and 82 percent had multiple internships. About half of the multiple-internship students

gained experiences with different companies, and half worked for the same company.

In addition, all seniors complete a capstone project, most of which are done with

external companies.

“First and foremost, students are seeking an opportunity that is going to increase their

technical skill set, increase their knowledge base in the real world, and teach them how

the company operates,” Hewerdine says.

Students who don’t have that internship experience are really behind the eight ball when they are seniors searching for their first full-time job.

/010

Getting the message

While engineering and technically focused colleges have advocated and integrated internships or co-op experiences for decades, liberal arts colleges are only now stepping up their promotion of internships as they strive to be more relevant and responsive, to better demonstrate the value of a liberal arts degree in a 21st-century economy, according to Hanover Research.

Cornell College in Iowa is rare because it has been challenging the liberal arts norm

for decades. In fact, its unique academic calendar opens up the opportunity for

internships in a way that few schools can. Cornell’s academic calendar is focused on

one class at a time. Every 3.5 weeks, a student completes a single course. “We can do

internships during one of the blocks so students can work 40 hours a week for a month.

That’s different to most universities, where students might intern part time during the

semester and can only do full-time internships in the summer,” says Joe Dieker, Vice

President for Academic Affairs and Dean.

Cornell students have interned at a range of employers, from the national

merchandiser Target® to a small publishing house in Denver and a women’s health

clinic in Mexico, as well as diverse nonprofit, arts, theater, and music organizations.

/11GETTING THE MESSAGE

Cornell’s academic calendar is focused on one class at a time. Every 3.5 weeks, a student completes a single course.

New York–based Hamilton College overhauled its internship support structure in

2005. The liberal arts college now encourages students to have at least two unique

internships on their résumé by the time they reach graduation. By 2012, the number

of students completing an internship doubled to 80 percent, while 65 percent of

graduates that year had completed two internships, according to Hanover Research’s

Career Pathways and Programs for Liberal Arts Students report.

Using a two-tiered internship strategy, Hamilton College encourages rising juniors

(students who have completed their sophomore years) to apply for “break-in”

internships—usually unpaid positions with small local organizations near campus or the

students’ homes. Rising seniors (students who have completed their junior years) are

encouraged to apply for capstone internships—paid positions with larger firms in major

metropolitan areas.

Hamilton credits this approach with easing students into the professional world and

encouraging them to explore different work environments.

/12GETTING THE MESSAGE

Rising seniors (students who have completed their junior years) are encouraged to apply for capstone internships—paid positions with larger firms in major metropolitan areas.

/13

Operating in the smaller workplace

The Detroit Collaborative Design Center works exclusively with nonprofits seeking to do cutting-edge work within cities. It is housed within the School of Architecture at the University of Detroit Mercy and hires full-time interns for the fall, spring, and summer semesters.

In an office of just 10 staff members, interns do everything, according to Executive

Director Dan Pitera. Students report to project managers, attend client meetings, and

get to learn and practise many aspects of architecture across diverse interest areas—

urban design, landscape, planning, and more.

“We feel strongly that an intern should be a part of all aspects of a project and of day-

to-day life. Typically, in a larger firm they get pigeonholed into one or two things, and

don’t get exposed to a variety of experiences,” Pitera says.

He acknowledges that the Design Center’s approach to internships isn’t the most

efficient way to operate the overall business. Consider the example of a client meeting.

The interns’ presence isn’t required, but the center finds merit in their involvement.

“In the long run, we’re making better interns because when they’re working on follow-

up work, they remember what the client said, and they have a tenor and feel that they

couldn’t get if they weren’t there,” Pitera says.

/14OPERATING IN THE SMALLER WORKPLACE

“We feel strongly that an intern should be a part of all aspects of a project and of day-to-day life.”

However, having interns directly interact with clients can present some challenges.

“The client can say something and we can keep our poker face whereas the students

might heavily sigh or roll their eyes. They don’t even know they’re doing it,”

Pitera says.

To preserve the client relationship, “we explain to the client that this student has only

been working with the Center a few months and doesn’t necessarily hold the same

values. We explain that we, not the intern, are the continuity for the client’s project.”

After the meeting is over and the client placated, the Design Center staff will speak

to the intern to ensure it never happens again. In fact, the Design Center attempts to

thwart the potential for challenges in public. During the course of the internship, Pitera

or another staff member creates informal training opportunities by posing theoretical

client questions or asking off-the-wall questions to see how the interns respond.

Then they explain why another response may be more appropriate.

Design Center interns work full time, and receive both academic credit and

compensation. Pitera says interns are paid hourly rates comparable to what they would

receive from another employer in the industry.

/15OPERATING IN THE SMALLER WORKPLACE

During the course of the internship, Pitera or another staff member creates informal training opportunities by posing theoretical client questions …

/16

Debating paid or unpaid

While the Detroit Collaborative Design Center interns are compensated as most are in the engineering, science, and professional fields, many internships—particularly those in social science fields—are unpaid. This has drawn fire from students and the U.S. Department of Labor in recent years.

Five years ago, Dallas Mavericks owner Mark Cuban wanted interns to create

time-sensitive content during the NBA team’s games for outlets that would not

be able to buy the content. Since he couldn’t monetize the endeavor, he thought

unpaid interns would be the key to its success. But, as he learned, that’s not the way

internships work legally in the United States, and as a result Cuban became a vocal

critic of the unpaid intern requirements.

For an internship to be exempt from the U.S. Fair Labor Standards Act (that is, unpaid),

it must offer training for the benefit of the trainee, shouldn’t displace a regular

employee, and should take place under close observation. Employers must gain no

immediate advantage based on the trainee’s activities, and on occasions may actually

have their operations impeded.

/17DEBATING PAID OR UNPAID

But, as he learned, that’s not the way internships work legally in the United States, and as a result Cuban became a vocal critic of the unpaid intern requirements.

As the U.S. Department of Labor began cracking down on rule-breakers, more

employers discovered the restrictive nature of unpaid internships and realized they

legally couldn’t continue their unpaid internships as they were.

Students, and some universities, frown upon unpaid internships because they can

have a negative effect on post-graduation employment compensation. NACE’s Class

of 2014 Student Survey revealed that graduates who came from a paid internship and

received a full-time job offer generally commanded a higher starting salary than did

graduates who had an unpaid internship and received a full-time job offer.

/18DEBATING PAID OR UNPAID

… more employers discovered the restrictive nature of unpaid internships and realized they legally couldn’t continue their unpaid internships as they were.

/19

Going virtual and freelance

A couple years ago, Lauren Holliday’s father put an end to her unpaid internships after she completed two non-compensated opportunities.

Lauren interned at the Sun-Sentinel newspaper in Florida, where she discovered her

passion for marketing, and added more lines to her résumé and items to her portfolio.

Then she secured a virtual position as a blogger and marketing intern for MusicSkins

(now Zing Revolution). While she didn’t have to pay the expenses that come with

relocating for an internship, she still didn’t earn any money, and relied on her family’s

financial support.

Critics say that unpaid internships marginalize students who may excel in a profession

but who simply can’t afford to take an unpaid internship.

Holliday understands. “I couldn’t afford an unpaid internship in New York,” she says,

noting that the virtual internship helped her gain valuable experience in social media,

writing, and editing content, plus researching ways to convert social media to dollars.

/20GOING VIRTUAL AND FREELANCE

Critics say that unpaid internships marginalize students who may excel in a profession but who simply can’t afford to take an unpaid internship.

Eventually, Holliday left college just short of earning her degree, taking what she

learned in her internships—both practically and philosophically—and turning it into

a business. She created Freelanships, a virtual internship site, to help her millennial

generation gain experience and make money without participating in formal on-site

programs.

Author and HR executive Russell says virtual or telecommuting internships are difficult

to find, in part because universities too often think internships have to happen at

brick-and-mortar locations. “They’re way behind on this. I understand they want to

ensure the internship has rigor, but [virtual] is our way of life,” he says.

At Rose–Hulman, students can turn their internships into a freelance career during the

school year. Some students work for companies from their dorm rooms. “We have a

lot of opportunities for students to get paid well from part-time or contract work that

companies want them doing while they’re here at school—it’s becoming second nature

to students who understand that work style and work life,” Hewerdine says.

/21GOING VIRTUAL AND FREELANCE

Students can turn their internships into a freelance career during the school year. Some students work for companies from their dorm rooms.

/22

Embracing the new world of work

Workers now expect to have at least seven to 10 jobs in their lifetime, says Williamson of the University of Wisconsin–Platteville.

With that evolution, long-time loyalty between the employer and the employee

is gone. As a result, workers—especially those in the millennial generation—have

embraced the “what-can-you-do-for-me” attitude.

“Before the employer had the power. Now the candidate has the power, a greater

sense of entitlement, and a greater sense of work–life balance, and employers are

going to have to adjust to that mentality,” Williamson says.

University of Wisconsin–Platteville students are encouraged to look beyond salary

when considering employment opportunities. “There are other things involved in

making your decision—benefits, time off, work–life balance, and more,” Williamson

says. “Companies need to adapt to that, while at the same time maintaining the

integrity of their company without alienating the current workforce and while still

continuting to engage fresh talent. It’s truly an adaptation.”

/23EMBRACING THE NEW WORLD OF WORK

“Before, the employer had the power. Now the candidate has the power, a greater sense of entitlement, and a greater sense of work–life balance” …

The Detroit Collaborative Design Center recognizes the adapting workplace. It doesn’t

operate a traditional 9-to-5 office, and doesn’t expect its interns to conform to that

rigidity either. Pitera says interns are made aware that if they want to put in an hour or

two posting on Facebook, responding to personal email, or running errands, they can,

but they need to make up that work time.

“We adhere to deadlines. It’s all about getting quality work done, and if their work

happens on schedule, then they can adjust their time. That never would have

happened 20 years ago,” Pitera says. “Now we manage time in a very different way.

I’m fine with them doing this or that, as long as the work and the deadlines are met,

and they give advance notice of in-office schedule changes.”

/24EMBRACING THE NEW WORLD OF WORK

“Now we manage time in a very different way. I’m fine with them doing this or that, as long as the work and the deadlines are met.”

/25

Taking the “old” approach

Eschew the word “internship” in favor of “experiential learning.” “Internship is the nomenclature for learning experiences—practicums, co-ops, internships—it’s still the same,” Russell says. “It’s university students coming together in the business environment to apply what they’ve learned academically in a real-life opportunity.”

Apprenticeships are an example of experiential learning, though they typically

haven’t been a part of the U.S. university experience. Tamar Jacoby recently wrote in

The Atlantic about how apprenticeships fell out of favor in the United States, a “victim

of our obsession with college and concern to avoid anything that resembles tracking.”

As she cited, less than 5 percent of young people train as apprentices in the United

States, and those apprenticeships are primarily in the construction trade. In Germany,

though, apprenticeships are experienced by close to 60 percent of students, and cover

fields as diverse as advanced manufacturing, IT, banking, and hospitality.

As Jacoby detailed, dual training is a highly respected career path in Europe.

Trainees split their days between classroom instruction and on-the-job time at a

company. The arrangement generally lasts four years with the hope of it leading

/26TAKING THE “OLD” APPROACH

Dual training is a highly respected career path in Europe. Trainees split their days between classroom instruction and on-the-job time at a company.

to full-time employment. Dual-training competition is stiff. Only 425 of the 22,000

applications were accepted by Deutsche Bank, and John Deere approved only 60 of

3,100 applicants. As Jacoby wrote, “In both settings, university and dual training, it’s

agreed that the purpose of education is to prepare people for jobs. In America, we’re

not so sure. We’re committed to the idea of education that prepares people for life

and suspicious of anything that smacks of training.”

/27TAKING THE “OLD” APPROACH

“In America, we’re not so sure. We’re committed to the idea of education that prepares people for life” …

/28

Lagging behind versus leading the innovation

“It appears that many institutions are focusing on redesigning and improving career services offices, internship opportunities, and experiential learning instead of altering curricula or graduation requirements,” according to the 2013 Hanover Research report.

The research cited some exceptions. Wake Forest University offers an undergraduate

minor in entrepreneurship and social enterprise. At Messiah College, administrators

challenged all academic departments to redesign requirements to ensure students

could understand and express the relationship between their academics and the world

of work.

Lincoln from Kelly Services says that universities would do well to proactively address

workforce matters–not only from the career-services level, but in the classroom like

Messiah College is doing. She is struck when she looks at curricula and sees little

education provided on the diverse ways to procure talent. Higher education tends

to teach the traditional W-2-employee model, and fails to instruct on varied work

experiences and formats.

/29LAGGING BEHIND VERSUS LEADING THE INNOVATION

Lincoln from Kelly Services says that universities would do well to proactively address workforce matters–not only from the career-services level, but in the classroom …

“I think that 40-hour full-time week expectation is changing so dramatically. The

concept of free agency—where the worker is not tethered to one particular employer

and can go anywhere—is gaining acceptance,” Lincoln says. “We’re more contract-

driven, especially as we get to the point where health benefits are more portable, and

more people are electing to choose how they’re going to work.”

She says the new world of work requires innovative thinking from both universities

and employers. “It’s a holistic view of talent engagement. Organizations focused on

workforce planning in their business model are getting more sophisticated. They’re

thinking about the internship pipeline differently,” Lincoln says.

/30LAGGING BEHIND VERSUS LEADING THE INNOVATION

“The concept of free agency—where the worker is not tethered to one particular employer and can go anywhere—is gaining acceptance.”

/31

Acting now

With this revelatory understanding of experiential education, universities that want to innovate their approach to internships should:

• Develop a better understanding of how a work-focused education (including

internships) can positively affect their student recruitment.

• Require internships or practical work experience as a component of any study

program where the main goal is to secure post-graduation employment.

• Redefine internships as experiential education opportunities, allowing for co-ops,

practicums, on-the-job experience, contract work, and other models that further

students’ practical skills.

• Develop experiential work programs with small businesses and medium-sized

enterprises—in addition to large, well-known companies—to better encompass the

varying employer sizes in the workforce.

• Educate organizations on the value of offering paid experiential education

opportunities, and ensure they understand the legal ramifications if they don’t.

/32ACTING NOW

• Promote and reward experiential programs where students are able to make an

impact, undertaking real-life projects to improve the organization.

• Foster a better understanding among students of potential post-graduation work

opportunities, including full-time, contractual, part-time, freelance,

and work-to-hire positions.

• Advocate that university-accrediting organizations grow their definition of

student success to encompass the new world of work and the importance of

experiential education.

/33ACTING NOW

EXIT

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ABOUT THE AUTHOR

JAMIE STACEY joined Kelly Services in 2014 as Vice President and Science Product Leader within

the Americas Product Group. In this role, Jamie is responsible for the scientific product strategy

that ensures Kelly delivers the world’s best scientific workforce solutions to its customers. Her

expertise includes global system implementations, vendor management, global recruiting,

employment marketing strategies, contingent labor programs, talent sourcing, and diversity and

inclusion. Jamie has a Bachelor of Science in chemistry from the University of Illinois at Urbana–Champaign, and a

Master of Science in organic chemistry from the University of Wisconsin–Madison.