Indiana Report Final 2009

STATE OF INDIANA INTERNSHIPS

A Report From Indiana INTERNnet

Developed by Intern Bridge, Inc. June 2009

1 “I applied for both of my internships because I wanted experience in the workforce. I wanted to be able to put something on my resume, and explore a potential career before getting out into the real world. It was nice to earn money and experience life away from home. I also liked meeting contacts and getting experience outside of the classroom.”

EXECUTIVE SUMMARY Utilizing internships is an incredibly powerful method used by employers to recruit the brightest talent, students to gain critical workplace skills, and government entities to complement workforce development strategies. This State of Indiana Internships report is based on the 2008 National Internship and Co-op Study conducted by Intern Bridge. The data presented in the report has been collected from 1,652 students attending 20 different universities within the state. Approximately one in five Indiana college students is participating in an internship at any given time. By the time Indiana students reach their fourth academic year, at least half will possess internship experience with many students having participated in more than one experience. The following chart shows internship completion by academic status for Indiana college students.

For-profit internships are the most popular, with 59% of students participating in corporate internships. Of the remaining, 26% participate in not-for-profit internships, and 15% intern with government agencies on the local, state, and federal levels. Popular internship industries in Indiana include manufacturing, health care, education, and technology, with a significant number of internships available within the engineering field. TYPE OF HOST ORGANIZATION

15% Government Agencies

26% Not-For-Profit Internships

59% Corporate Internships

INTERNSHIP PARTICIPATION BY ACADEMIC STATUS

100 96.3

88.9

80 76.1

60 52.8 47.2

40

23.9

20

While earning a monetary wage is not paramount in the eyes of a student when it comes to experiential education, Indiana students do put slightly more emphasis on receiving a wage when compared to their peers nationally. However, Indiana students are also 10% more likely to receive monetary compensation, and 5% less likely to receive academic credit – a sign that Indiana employers take internship compensation seriously. The average internship salary in Indiana is $12.60 per hour.

11.1

0

3.7 1st Year

2nd Year

3rd Year

4th Year

Percentage of Students Who Have Completed An Internship Percentage of Students Who Have Not Completed An Internship

As seen in the chart above, the majority of students (52.8%) have participated in an internship program by the time they reach the first semester of their fourth year.

Indiana students participate in a great number of summer internships, as compared to academic year internships. Hoosier students are also most likely to be employed full-time during their internship experience. More than 20% of Indiana interns report working more than 40 hours per week during their internship experience. Indiana college students learn about internship opportunities by utilizing their personal network including friends, family and faculty, in addition to

2 “He was not afraid to assign me work and set me off on my own to do it. Also, I was given a lot of responsibility right away, but he was willing to work with me on getting it done. He had a lot of faith in my background, work ethics, and how well the work would be preformed.”

EXECUTIVE SUMMARY (cont.) taking advantage of services offered by their campus career development office. Other methods include online internship portal, career fairs, on-campus information sessions, and organization web sites. Close to 75% of Indiana students report they would return to their host organization for another internship, and 85% report they would recommend the position to their closest friend. The higher a student’s academic status, the more likely they are to visit and utilize the services offered by the career development office. Only 28% of first year students report visiting the career center to gain information about potential internships, compared to 53% of fourth year students.

Indiana college students appear to still be in limbo regarding their decision of whether they will return home when they graduate. Some students appear perplexed about whether there are sufficient job opportunities near where their university is located. Students are looking for policy makers to implement a safety net that would ultimately encourage students to stay in Indiana. Ideas suggested include student loan forgiveness and a detailed support network designed to connect employers with students.

3 “The organization was a small business, so I was able to learn about the ins and outs of business, from working the front desk, to running a group session and participating in evaluations.”

DEMOGRAPHICS The information contained in this report is based on data collected from the 2008 National Internship and Co-op Study. The study was implemented in the fall semester of 2008 on over 300 university campuses throughout the United States. Over 42,000 responses were collected from undergraduate students, regardless of their academic background or type of institution they attended. The mission of the research project was to gather critical internship data from students while determining their expectations of academic internship programs, and whether those expectations were being met. The following Indiana institutions participated by administering the survey to their student populations: • Ancilla College • Butler University • Calumet College of St. Joseph • Earlham College • Franklin College • Goshen College • Indiana State University • Indiana Tech • Indiana University Purdue University Fort Wayne • Indiana University, Kokomo • Indiana University, Northwest • Ivy Tech Community College, Central Indiana • Ivy Tech Community College, Northeast • Manchester College • Purdue University • Rose-Hulman Institute of Technology • Saint Mary’s College • University of Indianapolis • University of Saint Francis • Wabash College A total of 1,652 students enrolled in the previously listed Indiana universities and colleges participated in the survey. Of the total sample, 1,279 students (77.4%) had not participated in an internship by the time they completed the survey, while 373 students (22.6%) had participated in an internship. It is important to note that

the survey was completed by students of all academic status and at varying times during the semester. At any given time, approximately one in five Indiana college students is participating in an internship. The aggregate data shows internship participation does not vary greatly by gender with 21.4% of females and 24.7% of males reporting having participated in an internship. However, it is possible that ethnic background does play a role into whether or not an Indiana college student participates in an internship experience. INTERNSHIP PARTICIPATION BY ETHNICITY

100 96.3

87.5

86.3

80

79.0

81.6

77.3

69.4

60 54.5 45.5

40

30.6

20

21.0

22.7

18.4

13.7

0

African American

12.5

American Indian

Asian

Caucasian

Latino

Native Hawaiian

Declined to Respond

Percentage of Students Who Have Completed An Internship Percentage of Students Who Have Not Completed An Internship

4 “I wanted to get hands-on work experience in industry to make me more marketable for full-time employment. I wanted to get as much experience as possible and learn a wide range of techniques and skills so I could work in many different settings.”

DEMOGRAPHICS (cont.) MULTIPLE INTERNSHIPS

FINANCIAL AID

It is not uncommon for students to participate in more than one internship during their college experience. This provides greater exposure to workplace culture, and contributes to the student’s ultimate success as a member of the workforce.

Of the students in Indiana who participated in an internship, 76% of students currently receive financial aid. This statistic is part of what constitutes the argument to offer interns monetary compensation, a topic covered later in this report.

Average Number Of Internships By Academic Status

FINANCIAL AID STATUS OF INDIANA INTERNS

First year Second year Third year Fourth year Fifth year

1.33 1.28 1.41 1.59 1.79

24% Do Not Receive Financial Aid 76% Receive Financial Aid

5 “The faculty contact I spoke with was a former branch manager and was a friend with the current branch manager. He also informed me the current branch manager highly valued interns and their role within the organization.”

DEMOGRAPHICS (cont.) INTERNSHIP PARTICIPATION BY INDUSTRY The following chart displays a list of industries where interns gained their workplace experience:

Industry

Government Manufacturing Education/Academia Health Care Non-Profit Technology Communications/Media Consumer Products Finance/Banking Social/Human Services Consulting Arts & Entertainment Transportation Pharmaceutical Accounting Energy/Utilities Defense Environment Hospitality Retail/Merchandising Agriculture/Farming/agribusiness Biotechnology Legal Services Real Estate Human Resources Insurance Telecommunications

Number of Interns

Percent

41 32 30 30 27 23 20 17 17 16 13 13 12 10 10 8 8 7 6 6 5 5 5 5 3 2 2

11.0% 8.6% 8.0% 8.0% 7.2% 6.2% 5.4% 4.6% 4.6% 4.3% 3.5% 3.5% 3.2% 2.7% 2.7% 2.1% 2.1% 1.9% 1.6% 1.6% 1.3% 1.3% 1.3% 1.3% 0.8% 0.5% 0.5%

6 “He was very supportive and let me come up with new ideas and implement them with little intervention or guidance. He was determined to make me fully competent in doing the job independently. He is a great mentor!”

DEMOGRAPHICS (cont.) INTERNSHIP PARTICIPATION BY POSITION The following chart displays a list of departments where interns gained their workplace experience: Department

Engineering Marketing Research Education Medicine Accounting/Auditing IT/Systems Finance Public Relations Counseling Administrative/Support Services Law Enforcement/ Security Analyst Sales Law Event Planning Human Resources Management Operations Project Management

Number of Interns

Percent

77 25 25 23 18 16 16 14 13 12

20.6% 6.7% 6.7% 6.2% 4.8% 4.3% 4.3% 3.8% 3.5% 3.2%

11

2.9%

10

2.7%

8 8 8 7 7 7 7

2.1% 2.1% 2.1% 1.9% 1.9% 1.9% 1.9%

7

1.9%

Department

Business Development Computer Drafting and Design Database Management Farming/Agriculture Fundraising/ Development Hotel/Restaurant/ Hospitality Political Organization/ Lobbying Product Management Actuarial Consulting Programming/Software Development Supply Chain Management/Logistics Tax Technical Support Buying/Purchasing Customer Service Game Design Web Development

Number of Interns

Percent

6

1.6%

6

1.6%

4 4

1.1% 1.1%

4

1.1%

4

1.1%

4

1.1%

3 2 2

0.8% 0.5% 0.5%

2

0.5%

2

0.5%

2 2 1 1 1 1

0.5% 0.5% 0.3% 0.3% 0.3% 0.3%

JOB OFFERS Of the fourth and fifth year students who participated in the survey, 22.9% were offered positions of full-time employment by their host organizations. It is important to note, however, that the percentage is likely higher. The survey was administered throughout the fall semester. It is feasible that a student took part in the survey without being officially notified if they were ultimately going to be offered a position of full-time employment. Of the same group, 47.1% reported that they were still waiting for a final decision.

7 “The contacts I spoke with were extremely interested, polite, and prompt in their responses. I knew that I would not be filing papers and running errands during the majority of my internship experience.”

PURSUIT OF INTERNSHIPS REASONS STUDENTS PURSUE INTERNSHIPS The following table represents a list of reasons students choose to pursue internships. Responses are ranked in the order of most important to least important, and sorted by Indiana intern data. The highlighted portion in black illustrates where Indiana data differs from national data. Reason Students Pursue Internships

Indiana National Colleges* Data**

To gain hands-on work experience To learn new skills To become better prepared to be employed in a specific field To make professional contacts for future networking To be given a realistic preview of the “World of Work” To experience work at a potential full-time employer To explore a new organization To earn money To explore a new industry To receive a full-time job offer from an employer To receive college credit To fulfill degree requirements To take part in community service To live in a specific area * Indiana Sample: 1,652 Students ** National Sample: 42,967 Students

1

1

2

2

3

3

4

4

5

5

6

6

7 8 9

7 10 8

10

9

11

11

12

12

13

13

14

14

Employers often decline to host interns, or expand an internship program because they anticipate it will cost them too much money. In particular, they fear they will be unable to offer competitive compensation. The first seven reasons students desire to pursue internships are academic and experiential in nature. While earning a wage is important, the opportunity to gain critical workplace experience is far more critical. It does appear Indiana college students place a slightly higher emphasis on compensation as compared to peers on a national basis. Receiving a full-time job offer also ranks slightly lower. (An interesting side note is that a higher percentage of Indiana interns received monetary compensation when compared to national data, a topic which will be reviewed later in this report.)

REASONS STUDENTS DO NOT PURSUE INTERNSHIPS Gaining an understanding of why students do not pursue internships is just as important as learning the motivation behind the students that ultimately take part in experiential education. The following table represents a list of reasons students do not choose to pursue internships. Responses are ranked in the order of most important to least important, and sorted by Indiana intern data. Overall, the reasons Indiana students do not pursue internships mirror that of the national data. The highlighted portion in black illustrates where Indiana data differs from national data.

8 “My supervisor made it a point to get to know each of the interns, and gave honest, constructive insight that opened my eyes to both my strengths as well as those areas in which I need to grow.”

PURSUIT OF INTERNSHIPS (cont.) Reason Students Do Not Pursue Internships

I do not have time because I have too much school work. It is too early in my college experience for an internship or co-op. There are no interesting internships or co-ops close enough to where I live. I do not have time because I have too many other jobs. I am unclear of the overall benefits of an internship or co-op. I do not have time because I am involved in too many school activities. I have applied to at least one internship or co-op, but was not offered a position. I do not have access to transportation, and therefore I am unable to get to an internship or co-op. I already have work experience so I do not understand what I can gain from an internship or co-op that I don’t already have. I do not feel it is necessary to take part in an internship or co-op as part of my overall college experience. I already know where I will be working so an internship or co-op has no value to me. I do not see the value of an internship or co-op for my career choice. * Indiana Sample: 1,652 Students ** National Sample: 42,967 Students

Indiana Colleges*

National Data**

1 2

1 2

3

3

4 5

4 6

6

5

7

8

8

7

9

9

10

10

11

11

12

12

9 “I had amazing people to work with and it’s really helped me develop personally and professionally and given me confidence as I look at graduate school. I think that these experiences are highly worthwhile!”

PROGRAM STRUCTURE INTERNSHIP PARTICIPATION BY SEMESTER TYPE OF HOST ORGANIZATION NATIONAL DATA

TYPE OF HOST ORGANIZATION INDIANA COLLEGES

2.4% WINTER

15% SPRING

58.3 SUMMER

13.7% SPRING

NUMBER OF HOURS WORKED PER WEEK

40

39.9

37.7

30

20

20.4

20.2

17.6

16.9

10

0

13.7 12.7

11.8 9.1

1-10

11-20

21-30

31-40

More than 40 hours

Number of Hours Worked Per Week By Percentage - Indiana Colleges Number of Hours Worked Per Week By Percentage - National Data

FULL-TIME VS PART-TIME NATIONAL DATA

56.7% Full-Time

60.6% Full-Time

23.6% FALL

NUMBER OF HOURS WORKED PER WEEK 50

FULL-TIME VS PART-TIME INDIANA COLLEGES

4.4% WINTER

16.4% FALL 66.2 SUMMER

FULL-TIME VS PART-TIME

39.4% Part-Time

43.3% Part-Time

College student participation in internships follows a notably different pattern than the national average. More Indiana students participate in summer internship programs than the national average, a positive factor in the world of experiential education. Summer internships typically provide an opportunity for an organization to hire a student on a full-time basis, which ultimately allows the student to gain greater workplace experience. A lower number of students appear to participate in internships during the academic year, which is not necessarily a negative situation as it allows students to focus efforts on learning academic theory which can later be adapted to workplace experiences. It is also important to note that a slightly higher percentage of Indiana students participate in full-time internships when compared to the national average.

10 “While my supervisors did not necessarily give me ‘in-depth feedback,’ they did tell me I was doing a great job on multiple occasions.”

SUPERVISOR SUPERVISOR FEEDBACK Feedback Frequency

STUDENT EXPECTATION FOR SUPERVISOR INTERACTION Percentage

Weekly Daily Bi-Weekly Once at the middle and once and the end of the program Never Just at the end of the program Monthly

37.9% 34.9% 11.0% 8.6% 6.2% 5.9% 5.6%

STUDENT EXPERIENCE WITH SUPERVISOR INTERACTION Comparison

My supervisor was available for consultation. My supervisor provided me with constructive feedback. My supervisor treated me professionally and respectfully. Mean based on a 5-point scale.

Indiana Colleges Mean

4.24 4.13 4.39

Comparison

Supervisor treats students professionally. Supervisor provides constructive feedback to students. Supervisor provides detailed explanation regarding assigned tasks. Supervisor is available for face-to-face consultation. Supervisor meets frequently with students to provide feedback on the quality of the work produced. Supervisor works at the same geographic location as the student. Supervisor is a member of senior management within the organization.

Indiana Colleges Mean

4.56 4.52 4.45 4.33 4.31 3.86 3.55

Mean based on a 5-point scale.

Choosing an effective internship supervisor is one of the most important decisions an organization can make. The direct-report relationship an intern has with the organization’s representative is critical to determining the overall outcome of the internship’s success, and the likelihood the intern will leave the organization as an ambassador instead of an adversary. The majority of interns received feedback on a daily or weekly basis. It is important for students to receive informal feedback on a daily basis. Informal feedback should be followed up by in-depth feedback at least twice during the internship process. This feedback should be written and provide an opportunity for not just students to be evaluated by supervisors, but also for students to evaluate the internship program. If this is done at the mid-term and end-of-term, potential problems can be identified and corrected moving forward.

11 “I found the internship on my school’s web site and I knew that it would be the opportunity of a lifetime. So I took a shot at it and needless to say it helped me out immensely.”

RECRUITING & MARKETING TABLE A: How students expect to learn about internship opportunities How Students Expect to Learn about Internships

Campus Career Development Office or Field Placement Office Career Fair Faculty Contact Internship Fair Campus Internship Information Session Personal Contact Online Career Directory (Indiana INTERNnet, etc.) Organization Web Site Fellow Student who was a Past or Current Intern with the Organization Friend or Family Contact Advertisement in Print Fellow Student Organization Open House Student Organization

Indiana Colleges

1

TABLE B: How students learn about internship opportunities

National Data

1

2 3 4

5 4 2

5

3

6

8

7

7

8

6

9

9

10

10

11

13

12

12

13

14

14

11

How Students Learn about Internships

Friend or Family Contact Faculty Contact Personal Contact Campus Career Development Office or Field Placement Office Career Fair Campus Internship Information Session Organization Web Site Internship Fair Online Career Directory (Indiana INTERNnet, etc.) Fellow Student Fellow Student who was a Past or Current Intern with the Organization Student Organization Advertisement in Print Organization Open House

Indiana Colleges

National Data

1

3

2 3

2 1

4

4

5

6

6

7

7 8

5 12

9

8

10

10

11

9

12 13

11 13

14

14

Table A illustrates the methods in which students expect to find internship opportunities, whereas Table B illustrates the method in which students actually obtain internships. There is a slight disparity with how Indiana students expect to find internships when compared to students on a national basis. In particular, Indiana students appear to put more emphasis on career fairs than average students nationally. In terms of how students ultimately find internships, Indiana students follow the national trend of utilizing friend, family, faculty and personal contacts to achieve an internship position.

12 “I was given multiple options, and I chose the one that I thought would be most interesting to me, and most likely to be something I might want to pursue later in life. The main goal of the internship was to see if the field interested me, so I chose with that in mind.”

ORIENTATION & OFF-BOARDING STUDENT ORIENTATION DESIRED OUTCOMES Student Orientation Desired Outcomes

Receiving training related to assignments and tasks. The organization articulates what is expected of students at the outset of the internship/co-op experience. The organization explicitly articulates the projects and assignments of students at the outset of the internship/co-op. The orientation includes a tour of the facility. The orientation includes an overview of the organization’s mission. The orientation includes introductions to other employees. Students are able to articulate their expectations of the internship/co-op to the organization. The orientation includes introductions to other students. The organization provides an appropriate farewell for students at the conclusion of the internship/co-op.

STUDENT ORIENTATION EXPERIENCES Indiana Colleges Mean

4.49 4.47

4.28 4.17 4.17 4.11 4.05 3.78 3.41

Mean based on a 5-point scale.

Providing an exceptional orientation is critical for a successful internship program. Orientation provides organizations with the opportunity to jumpstart the program and set the attitude moving forward. Overall, Indiana students appear to be happy with the orientation to internship programs. Employers should be reminded that a key outcome of orientation is having students posses a true, realistic understanding of the work they will be completing during the internship. In addition, employers should consider including items listed to the right as part of the orientation process.

Student Orientation Experiences

I was satisfied with the introductions to other employees. I was given adequate training to complete assignments and tasks. I was satisfied with the quality of the orientation that I received. Actual activities I performed matched my initial understanding of the nature of the internship/co-op. My work assignments met my expectations. The organization effectively articulated what was expected of me at the outset of the internship/co-op experience. The organization provided an appropriate farewell for me at the conclusion of my internship/co-op. The activities/projects of my internship/ co-op were made clear to me from the start of the program.

Indiana Colleges Mean

4.06 3.93 3.86 3.8 3.77 3.77

3.77

3.75

Mean based on a 5-point scale.

Items To Include As Part of An Internship Orientation

Introduction to co-workers Where to gain technical help Company policies Flexible work schedule Project timeframes Customers/clients of the organization

Copy of organization chart Employer expectations Dress code Tour of the facility Emergency procedures Opportunities to network

13 “He was down-to-earth and didn’t treat me like a temporary employee. He treated me like I was a member of the team and I was included in all team meetings and events.”

COMPENSATION MONETARY COMPENSATION 27.6 Did Not Receive Monetary Compensation

72.4% Received Monetary Compensation

While receiving monetary compensation is not necessarily a chief concern of students who take part in internships, it certainly matters. Employers need to consider the vast population of college students who simply cannot afford to take part in unpaid internships. The most competitive internship programs offer monetary compensation and gain access to the largest candidate pools.

STATUS OF MONETARY COMPENSATION - INDIANA

INDIANA INTERNSHIP COMPENSATION - WAGES BY MAJOR Academic Major

Agriculture, Agriculture Operations, and Related Sciences Architecture and Related Services Area, Ethnic, Cultural, and Gender Studies Biological and Biomedical Sciences Business, Management, Marketing, and Related Support Services Communication, Journalism and Related Programs Communications Technologies/Technicians and Support Services Computer And Information Sciences and Support Services Education Engineering Engineering Technologies/Technicians English Language and Literature/Letters Family and Consumer Sciences/Human Sciences Foreign Languages, Literatures, and Linguistics Health Professions and Related Clinical Sciences History Liberal Arts and Sciences, General Studies and Humanities Mathematics and Statistics

Hourly Wage

Number of Responses

$15.00 $10.50 $13.00 $ 9.40 $11.95 $ 8.17 $ 7.00 $14.55 $10.94 $14.54 $18.33 $ 9.60 $17.00 $ 8.50 $11.70 $11.75 $10.56 $12.33

2 1 1 5 57 3 1 14 8 85 3 5 1 1 9 2 10 8 (table cont. on page 14)

14 “I was paid well and was able to make a lot of networking contacts because I worked with a variety of clients instead of the typical internship in which the intern only gains contacts from the company he/she interns with.”

COMPENSATION (cont.) INDIANA INTERNSHIP COMPENSATION - WAGES BY MAJOR (cont.) Academic Major

Philosophy and Religious Studies Physical Sciences Psychology Public Administration and Social Service Professions Social Sciences Visual and Performing Arts

Hourly Wage

Number of Responses

$10.50 $10.50 $10.72 $18.00 $10.18 $ 8.83

2 4 6 1 8 3

Hourly Wage

Number of Responses

$12.10 $15.00 $10.25 $15.70 $10.00 $ 9.00 $ 7.67 $12.00 $18.50 $16.00 $15.63 $14.12 $15.74 $ 9.07 $15.55 $ 9.49 $10.00

8 2 6 5 2 2 3 1 1 2 7 17 7 17 8 7 1

INDIANA INTERNSHIP COMPENSATION - WAGES BY INDUSTRY Industry

Accounting Agriculture/Farming/Agribusiness Arts & Entertainment Biotechnology Communications/Media - Advertising Communications/Media - Journalism Communications/Media - Marketing/PR Communications/Media - Publishing/Print Media Consulting - Environmental Consulting - Strategic/Change Management Consulting - Technology Consumer Products Defense Education/Academia Energy/Utilities Environment Finance/Banking - Brokerage

(table cont. on page 15)

15 “My supervisor listened to what I said and took my opinions into consideration. Although we talked a lot about work-related issues, we also talked about things outside the workplace and I enjoyed getting to know him as a person.”

COMPENSATION (cont.) INDIANA INTERNSHIP COMPENSATION - WAGES BY INDUSTRY (cont.) Industry

Finance/Banking - Commercial Banking Finance/Banking - Financial Services/Planning Finance/Banking - Investment Banking Finance/Banking - Venture Capital Government - Federal Government - Local Government - State Health Care Hospitality Insurance Legal Services Manufacturing Non-Profit Pharmaceutical Real Estate Retail/Merchandising Social/Human Services Technology - Electronics Technology - Hardware Technology - Information Systems Technology - Internet/E-commerce Technology - Network Administration Technology - Software Telecommunications Transportation

Hourly Wage

Number of Responses

$ 8.85 $11.83 $12.00 $12.00 $12.38 $10.02 $12.56 $12.45 $11.25 $15.00 $20.00 $13.06 $ 9.35 $16.11 $10.00 $12.38 $11.05 $14.14 $19.88 $ 8.00 $ 9.95 $13.83 $18.13 $11.50 $13.88

2 6 1 1 9 5 5 11 2 2 1 31 10 9 4 4 8 7 4 1 2 3 4 2 10

16 “My supervisor gave just the right amount of instruction and was always there if I ever needed help completing a task.”

COMPENSATION (cont.) INDIANA INTERNSHIP COMPENSATION - WAGES BY POSITION Position

Accounting/Auditing Actuarial Administrative/Support Services Analyst Business Development Computer Drafting and Design Consulting Counseling Customer Service Database Management Education Engineering Event Planning Farming/Agriculture Finance Fundraising/Development Game Design Hotel/Restaurant/Hospitality Human Resources IT/Systems Law Management Marketing Medicine Operations Political Organization/Lobbying Product Management Programming/Software Development

Hourly Wage

Number of Responses

$13.05 $14.75 $10.58 $ 9.38 $10.15 $13.00 $16.00 $13.20 $17.00 $13.25 $ 9.73 $15.00 $ 8.50 $10.00 $13.58 $ 7.00 $29.20 $ 7.50 $10.75 $11.13 $13.40 $10.92 $10.36 $11.73 $10.15 $14.25 $13.50 $10.50

14 2 6 6 4 3 1 2 1 2 10 73 1 1 11 1 1 1 4 12 2 5 18 8 4 2 3 2 (table cont. on page 17)

17 “My supervisor allowed me to work independently while giving insight and advice as needed. This approach allowed to me learn firsthand through actual experience while asking questions and learning from minor mistakes.”

COMPENSATION (cont.) INDIANA INTERNSHIP COMPENSATION - WAGES BY POSITION (cont.) Position

Project Management Public Relations Research Sales Supply Chain Management/Logistics Tax Technical Support Web Development

Hourly Wage

Number of Responses

$12.25 $ 8.13 $11.96 $13.38 $ 9.50 $17.25 $15.00 $18.00

4 4 22 4 2 2 1 1

COLLEGE CREDIT Status of College Credit Indiana vs Nation

Received College Credit Did Not Receive College Credit

Indiana Colleges 45.8% 54.2%

Number of Credits Received

National Data 51.9% 48.1%

Pay for Credits

Indiana Colleges Students who paid for college credit Students who did not pay for college credit

83.6% 16.4%

One Two Three Four More than Four

Indiana Colleges 7.7% 6.4% 63.1% 7.6% 15.2%

Fewer students receive academic credit for their internship experience in Indiana than the national average, a possible reflection of the fact that Indiana also offers more paid internships. Over 80% of students who receive academic credit also must pay for those credits, a compelling statistic which further shows the importance of paying a monetary wage.

18

“Everyone knew I was there to learn and they took me in and gave me as much experience as possible.”

LEGALITIES OF INTERNSHIPS The employment law of hosting interns is both vague and ambiguous. Most of the justice system in U.S. society is based on case law, decisions made by a court upon interpretation of written law. There are few cases throughout the United States involving internship and labor, and therefore, little solid evidence about the legalities of hosting interns. The Department of Labor’s regulatory board made a ruling to help internship coordinators decide if their interns are employees (who require compensation) or volunteers (who do not require compensation.) The Six Prong Test is noted below. By definition, an internship program fails at least two of the prongs. Thus, interns must be paid.

Nonetheless, there is little room in the regulations for programs that fail to provide either monetary compensation or college credit. In Indiana, 5.6% of interns report failing to receive monetary compensation or college credit for their internship experience, as compared to 11% nationally. In many cases, employers simply do not understand the legalities involved. Employers should be educated about the importance of internship compensation.

It has become customary for some interns to receive college credit instead of monetary compensation. It is important to note that this practice has never been sanctioned or approved by any court or regulating agency. However, there is no recorded evidence of any sort of prosecution or penalties being applied. It is likely that regulatory authorities find no purpose in ceasing the practice as the long-term benefit of providing workforce education probably outweighs the short-term impact of lost wages.

THE SIX PRONG TEST “Whether trainees or students are employees of an employer under the [Fair Labor Standards Act] will depend upon all of the circumstances surrounding their activities on the premises of the employer. If all of the following criteria apply, the trainees or students are not employees within the mean of the [FLSA]: 1) The training, even though it includes actual operation of the facilities of the employer, is similar to that which would be given in a vocational school; 2) The training is for the benefit of the trainees or students; 3) The trainees or students do not displace regular employees, but work under their close observation; 4) The employer that provides the training derives no immediate advantage from the activities of the trainees or students, and on occasion his operations may actually be impeded; 5) The trainees or students are not necessarily entitled to a job at the conclusion of the training period; and 6) The employer and the trainees or students understand that the trainees or students are not entitled to wages for the time spent in training.” U.S. Department of Labor. Employment Relations Under the Fair Labor Standards Act. WH Publication 1297. Reprinted August 1985.

19 “The best part of my internship was the exposure to the company and all the information I was given relating to what my opportunities would be with the company as a full time employee.”

OUTCOMES

WOULD YOU RETURN TO THE ORGANIZATION IN INDIANA FOR ANOTHER INTERNSHIP/CO-OP?

College Credit Recipients

Indiana Colleges Mean I am now better prepared to be employed within the field. I was given a realistic preview of the “world of work”. I established contacts that I will network with in the future.

4.2 4.2

26.3% No

4.0 73.7% Yes

Mean based on a 5-point scale.

WOULD YOU RECOMMEND YOUR INDIANA INTERNSHIP/CO-OP, TO YOUR CLOSET FRIEND?

AS THE RESULT OF YOUR INDIANA INTERNSHIP/CO-OP, WOULD YOU RETURN TO THE ORGANIZATION FOR FULL-TIME EMPLOYMENT?

15.3% No

64.6% Yes

35.4% No

84.7% Yes

The vast majority of Indiana interns were satisfied with their internship experience, with almost 75% of interns reporting they would return to the host organization for another experience, and nearly 85% of interns reporting they would recommend the experience to friends. The data also shows strong evidence that the internship experiences of students provides effective preparation for future full-time employment.

20 “I think that an internship should be a part of the requirements for a degree, not just an option. Also, they should try to promote them more in general. I had to ask my adviser and find out everything for myself. My adviser should have been the one encouraging me to take part in an internship.”

CAREER CENTERS Have you visited your university’s career center to gain information about taking part in an internship or co-op?

First Year Second Year Third Year Fourth Year Fifth Year

Yes

No

27.7%

72.3%

38.5%

61.5%

50.1%

49.9%

53.1%

46.9%

48.8%

51.2%

Do you believe your university prepares its students effectively to work at an internship\co-op site?

Yes No

Indiana Colleges 87.2% 12.8%

The correlation between academic status and career center use is clear. The more advanced a student is in terms of their academic progress, the more likely they are to have utilized the services of career services. The issues students have with their career centers are fairly common throughout the United States. There is a general disconnect in academia between career centers and student populations. Staff constantly make themselves available to students, but the students don’t necessarily take advantage of the services until they truly need them (junior and senior year.) Universities need to ensure they are educating their student population early about the career services office, and the important role that the office plays in the success of a student’s job search later on.

Following are student responses when asked… what could your university’s career center do to encourage students to seek internships or co-ops directly through their office? ■ “My experience with the university’s career center has been lack of diligence and promotion of opportunities available to students. I accidently ran across the site and sought further information at the career center. I set an appointment but found out that she knew less than I did about the internship and process of application. I didn’t receive adequate support and eventually subsided from my pursuit.” ■ “I am a freshman in college, so I have a long time to get internships and co-ops; however I would like to get my experience early so I can build on it. I have not heard anything regarding internships or co-ops for either of my majors. It would be a good touch to receive e-mails or newsletters that would inform me and other students who are having the same problem.” ■ “Post ads near the entrance of the building or at elevators or doorways. They could send an e-mail for a reminder. Classroom instructors should be engaged in the process as well. I often find myself too busy studying for the next test or writing my next paper. Information like internships gets put on the back burner! That doesn’t mean it’s not important, it just means I could use some more helpful reminders.” ■ “Send out a list of services offered and the process involved with each service. For example, you can (service offered) by coming to the career center and we will have you (process step 1) and then (process step 2), etc.”

21 “I just plain DID NOT know about this offer from the university. I don’t even know what to look for in an internship. Basically, where do I start?”

CAREER CENTERS (cont.) ■ “Lose the rigid adherence to antiquated notions of academia. Higher education is a commodity, a service, and industry -- nearly required to enter the workforce. Beyond certain general education requirements, going through the motions and pretentiousness of traditional academia is fruitless to all but academicians, and is a tremendous waste of student (and state) funding and time.” ■ “I would have liked more training on the social and cultural conventions of the workplace - my technical skills are fine but I have a hard time knowing how to address my co-workers, what is acceptable to wear, whether it’s ok to answer a cell call while in my cubicle, etc.” ■ “Have your counselor each semester remind students that this is part of the program. Provide examples of someone who has been through the program to talk with students. Invite them along for an hour or two hour shadow while they are doing the internship.” ■ “Inform students of the benefits of co-op/internships. I had not heard about them until a professor told the class about them. By making the information available online at the campus web site students may be better informed about openings.” ■ “Maybe have an INTERN 100 class, where freshman would be placed at a local non-profit or forprofit business that would sufficiently prepare them for their field and if they are undecided, that could also help them to finalize a major.” ■ “Place high value in the opportunity, provide mock interviews, have faculty provide community contacts for coops/internships to the office rather than sending students out without direction, be realistic for non traditional students.

■ “I know a lot of students who had trouble finding an internship that suited their needs. I think it would be helpful for the university to advertise that they can help the student find an appropriate internship.” ■ “Find other students attending the university that have taken similar internship/co-ops. Most students or even graduates would be willing to talk about their experiences with those interested.” ■ “Investigate the companies or organizations where we can apply and help us decide the one that fits better with our personal lives.” ■ “Offer classes and educate students on why internships can be the best decision they will make in their college career.” ■ “Let us know you are there and what services are being offered by your department, and how you can assist students in reaching their goals.” ■ “Tell or show students ahead of time what an internship entails, so students can work on those skills ahead of time and be more prepared.” ■ “Let students know how internships can diversify their portfolio and how internships can create great opportunities for networking.” ■ “This is the job of academic advisors and the student should have some idea of what they should expect by their junior year.” ■ “Continue to have students do career observations in the workplace so they get a good idea of what their future job could be.”

22 “Policy makers should use their relationship with the Chamber of Commerce to encourage businesses and other organizations to pursue student internships by offering incentives to those businesses who can in turn compensate their interns adequately.”

BRAIN DRAIN Comparison

There are job opportunities in my field of interest. Cost of living is affordable. Housing costs are affordable. There are opportunities to advance my higher education. The geographic location is appealing. The cultural and social scenes are appealing. I would stay in the state where my university is located following graduation if financial incentives could be secured and were tied to me staying. I would be more willing to stay in the state where my university is located if I was afforded student loan forgiveness. I believe that there are sufficient job opportunities present in the state where my institution is located. As a direct result of taking part in an internship or co-op, I would be more likely to stay in the state where my university is located after graduation. I will stay in the state where my university is located following my graduation. I believe that there are sufficient job opportunities present in the city/metropolitan area where my institution is located. I have already decided to return home after graduation.

Indiana Colleges Mean

National Data Mean

4.50 4.30 4.26 4.12 3.84 3.79

4.49 4.29 4.24 4.12 3.94 3.86

3.78

3.71

3.71

3.6

3.40

3.48

3.20

3.19

3.14

3.14

3.08

3.23

2.75

2.75

Mean based on a 5-point scale.

Brain drain, or knowledge retention analysis, is important when evaluating the economic impact of internship and workplace education initiatives. The responses from Indiana college students reveal interesting information. Indiana students appear just as likely to stay in the state when they graduate compared to students from other states. There appears to be a disparity in terms of the number of students who believe there are sufficient job opportunities near their university’s location. A common belief is that students make a decision early in their college careers to return upon graduation. However, in Indiana that does not appear to be the case. It seems that students have not yet made up their mind about returning home – which is excellent news

in relation to future knowledge retention initiatives. The overall numbers for knowledge retention are in line with national data. The open ended responses (a few are noted on page 22) uncover a pattern of opinions from students as they relate to individual desire to stay in state upon graduation. Students gravitate largely towards student loan forgiveness programs. Overall, students are looking for policy makers to create a more supportive network that encourages businesses to hire college students and connects students with those jobs.

23 “As a political science major, with interest in foreign policy and international relations, I do not see very many opportunities within a Midwest state. If the state would provide knowledge of opportunities, it would more entice me to remain.”

BRAIN DRAIN (cont.) ■ “Create incentives for companies to hire recent graduates. Finding an employer who is willing to hire a recent graduate seems to be quite difficult. Pursuing a higher education and graduating from any institution of higher learning should have benefits when finding a job after a degree completion. Students put forth a great deal of time and effort and have a strong understanding that the key to a successful future is through education; so some assistance from the state where we reside would be of help and that would give us an incentive to stay in that state, post-graduation. Also, if there were more assistance provided by the state to receive a masters degree that would greatly increase our opportunities to achieve a better place of employment, place of living and income.” ■ “Not to sound materialistic, but with the economy slipping like it is — I am very afraid of how I’m going to pay my student loans. We are told we must attend college or we’ll have nothing to work with —yet, without incentives to stay, it just seems like we’re digging ourselves into deeper holes. We’re thousands of dollars in debt before we even get a start in the world. It’s worth it to attend college — I love college — but if I end up living on the street because I can’t afford my loan payments, I’ll be wondering if it was worth it.”

■ “The debt burden of school loans will make it nearly impossible to stay in Indiana. I will more than likely have to move to another area just so I can afford to pay my student loans, let alone put a roof over my head. Additionally, to compete in today’s job market, having an undergraduate degree is not enough. Consider grants and state-funded master’s degree programs to create even a better way for students such as myself to stay in the state.” ■ “There needs to be more internship opportunities in smaller communities in my state. Existing organizations need to be willing to recruit interns on smaller campuses. While the education is excellent on those campuses, the opportunities to find internships and jobs from those campuses are extremely limited and difficult to obtain. I have actually been locked out of recruiting sessions on larger campuses.”

Indiana INTERNnet is an internship-matching program linking employers, students, high schools, colleges and universities by providing both high-tech and high-touch support. It is a powerful web-based searching, matching and reporting system coupled with personal assistance, a toll-free hotline and resource materials focused on creating or expanding high quality internship opportunities within the state.

A PROGRAM MANAGED BY THE INDIANA CHAMBER OF COMMERCE 115 West Washington Street, Suite 850S P.O. Box 46926 Indianapolis, Indiana 46244 317-264-6862 866-646-3434 toll-free www.indianaintern.net