2014 Internship & Co-op Survey

Transcription

1 $160 NACE Member / $260 Nonmember Price Internship & Co-op Survey National Association of Colleges and Employers 62 Highland Avenue Bethlehem, PA Copyright April 2014 by the National Association of Colleges and Employers

2 2 Internship & Co-op Survey Report National Association of Colleges and Employers TABLE OF CONTENTS About the Survey... 3 Executive Summary...4 An Overview of Internship and Co-op Programs... 6 The Purpose of Internship/Co-op Programs How Interns/Co-ops Spend Their Time Figures 1 7 Hiring Projections Internship and Co-op Hiring Projections by Industry and Region Returning Students Figures 8 14 Recruiting Cycle Time School Selection Figures Conversion/Retention Internship and Co-op Conversion Rates Internship and Co-op Retention Rates Figures Compensation Unpaid vs. Paid Internships Salaries Signing Bonuses Benefits Relocation Assistance Figures Summary...33 Appendix...34 Survey Respondents

3 National Association of Colleges and Employers Internship & Co-op Survey Report 3 ABOUT THE SURVEY NACE s 2013 Internship & Co-op Survey was conducted from November 18, 2013, through January 24, The survey was sent to 1,116 NACE employer members; 264, or 23.7 percent, took part. More than 20 industries were represented. By region, 22.7 percent of respondents were from the Northeastern United States; 25.8 percent were from the Southeast; 33.0 percent were from the Midwest; 17.8 percent were from the West; and 0.8 percent were from outside of the United States. Where possible, selected data are presented by industry and region. Participating NACE members receive a complimentary copy of the survey report. Customized results of the survey are also available. Participants receive a 50 percent discount on custom reports. For more information, contract Kenneth C. Tsang, NACE research associate, at or ktsang@naceweb.org. NACE RESEARCH Edwin W. Koc, Director of Strategic and Foundation Research Andrea Koncz, Employment Information Manager Kenneth C. Tsang, Research Associate Anna Longenberger, Research Assistant

4 4 Internship & Co-op Survey Report National Association of Colleges and Employers EXECUTIVE SUMMARY Employers responding to the 2014 Internship & Co-op Survey once again affirm that internships and co-operative education programs are essential components of their college recruiting programs. The following are key findings of the survey: HIRING The number of internships is expected to decrease by 3.4 percent in o About two-thirds of industries plan to decrease their intern hires in 2014, while the other one-third plan to increase their 2014 intern hires. o By region, decreases are not expected in the Northeast, where employers expect an increase of 10 percent. The number of co-ops is expected to increase by 4.4 percent in o About half of the industry groups have plans to increase co-op hiring in 2014, while the other half plans to decrease 2014 co-op hiring. o Only employers in the Midwest plan to decrease their number of co-op hires in RECRUITING Employers continue to prefer high-touch methods for recruiting interns and co-ops. o Career fairs and on-campus recruiting comprise more than half of employers recruiting budgets for interns and co-op students. o Career fairs and on-campus recruiting are rated highest in terms of effectiveness for recruiting interns and co-op students. School selection for recruiting interns and co-op students is based on the these top three reasons: o Academic majors offered at the institution; o Perceived quality of the programs from which the recruiter will obtain new interns and/or co-op students; and o Employers past recruiting experiences at the school.

5 National Association of Colleges and Employers Internship & Co-op Survey Report 5 CONVERSION AND RETENTION The conversion rate for interns rose this year to 51.2 percent. Employers made full-time offers to 64.8 percent of their interns; the acceptance rate dropped from 85.6 percent in 2013 to 79.0 percent in The co-op conversion rate increased from 36.9 percent in 2013 to 46.7 percent in The rate at which employers made full-time offers to their co-op students dramatically and steadily increased from 48.8 percent in 2013 to 56.8 percent in The rise in the offer rate coincided with a rise in the acceptance rate an increase from 75.5 in 2013 to 82.2 percent in Employees who completed an internship or co-op program with their employer are more likely to be with the company at both the one-year and five-year retention benchmarks. COMPENSATION The average hourly wage rate for interns at the bachelor s degree level ranges from $15.05 to $ The average hourly wage rate for interns at the master s degree level ranges from $22.21 to $ Class year and academic major show distinct differences in hourly wage rates for interns: o Senior class interns are paid, on average, $2.89 more than freshman class interns. o Among majors at the bachelor s degree level, the highest pay rates are for engineering students $20.18 per hour while liberal arts majors have the lowest pay rates at $17.02 per hour. The average hourly wage rate for co-ops at the bachelor s degree level ranges from $15.17 to $19.24 per hour. The average hourly wage rate for co-ops at the master s degree level ranges from $23.46 to $26.82 per hour. Employers continue to provide benefits to their interns and co-ops, although the least expensive benefits continue to be the most common social activities, paid holidays, and service time. o Relocation assistance is offered to interns by just over half of employers, and to co-ops by just under half.

6 6 Internship & Co-op Survey Report National Association of Colleges and Employers AN OVERVIEW OF INTERNSHIPS AND CO-OP PROGRAMS THE PURPOSE OF INTERNSHIP/CO-OP PROGRAMS Nearly all respondents (92.2 percent) report that they have formal programs to hire interns and/or co-op workers. Among them, programs geared toward interns either solely or in conjunction with co-ops are the most popular. Meanwhile, programs that focus exclusively on co-op students are very rare. (See Figure 1.) Figure 1: Respondents with a formal program Type of Formal Program # of Responses % of Responses Internship program only % Co-op program only 6 2.5% Both co-op and internships programs % Total % Employers in the western United States are far less likely to have co-op programs than employers in the Northeast, Southeast, and Midwest regions. Likewise, co-op programs are most common among employers in the northeastern region of the country. (See Figure 2.) Figure 2: Type of formal program, by region Region Internship Program Only Co-op Program Only % of Responses Both Co-op and Internship Programs Northeast 40.4% 3.8% 55.8% Southeast 56.7% 1.7% 41.7% Midwest 52.5% 2.5% 45.0% West 65.1% 2.3% 32.6%

7 National Association of Colleges and Employers Internship & Co-op Survey Report 7 Employers continue to use internship and co-op programs primarily to recruit graduates for entry-level positions. Threequarters (77.6 percent) of employers sponsor internship programs and two-thirds (62.6 percent) have co-op programs. Respondents indicate that recruiting new hires is the primary focus of their programs. Some 20.1 percent to 27.8 percent of employers indicate that the focus of their programs is to provide students with on-the-job experience. Few employers (3.8 to 9.2 percent) indicate that the purpose of their programs is to build relationships with schools. (See Figure 3.) Figure 3: Focus of internship and co-op programs Internship Programs Co-op Programs # of Responses % of Responses # of Responses % of Responses Recruit entry-level hires % % Build relationships with schools 5 2.3% % Provide experience % % Total % % HOW INTERNS/CO-OPS SPEND THEIR TIME Because most respondents indicate that entry-level recruitment is the primary focus of their internship and co-op programs, it is not surprising that, on average, 62.3 percent of an intern/co-op s time is allocated toward analytical, problem-solving, and project management-related tasks. From another perspective, a near insignificant 2.5 percent of an intern/co-op s time is reportedly spent on non-essential functions. (See Figure 4.) Figure 4: How interns/co-ops spend their time Mean Median Administrative/clerical 8.5% 5.0% Communications 17.7% 17.0% Logistics 12.4% 10.0% Analytical/problem solving 36.9% 30.0% Project management 25.4% 20.0% Non-essential functions 2.5% 0.0%

8 8 Internship & Co-op Survey Report National Association of Colleges and Employers By industry, the same holds true, although there are some notable variations. Interns and co-ops in the social services sector and government agencies spend the most time on administrative tasks (16.3 percent and 19.0 percent, respectively). Communication-oriented duties for interns and co-ops are common in the retail trade, social services, and accounting services sectors (22.0 percent to 27.4 percent), while logistics-oriented duties for interns and co-ops are most common in the construction and engineering services industries (19.3 percent and 24.2 percent, respectively). Two professional services sector groups management consulting and miscellaneous professional services have interns and co-ops focusing on analytical and problem-solving tasks (49.5 percent and 53.8 percent, respectively), while interns and co-ops in the wholesale trade and food and beverage manufacturing sectors focus on project management (43.8 percent to 37.3 percent, respectively). Lastly, government agency interns and co-ops spend the most time on non-essential functions (7.0 percent, or more than twice the average of 2.5 percent). (See Figure 5.) Figure 5: Distribution of intern/co-op time, by industry Industry Administration Communications Logistics Analytical Project Non-essential Average Oil & Gas Extraction 5.8% 17.3% 9.1% 41.7% 24.4% 2.2% Utilities 7.8% 16.7% 16.6% 38.3% 23.8% 1.3% Construction 11.4% 12.9% 19.3% 20.8% 35.0% 5.0% Food & Beverage Mfg. 5.8% 18.5% 14.4% 29.0% 37.3% 0.4% Chemical (Pharmaceutical) Mfg. 7.7% 15.0% 12.1% 31.3% 31.3% 2.9% Computer & Electronics Mfg. 7.6% 16.4% 10.3% 46.5% 23.3% 2.1% Motor Vehicle Mfg. 10.0% 14.0% 15.0% 46.4% 18.0% 4.0% Misc. Mfg. 7.3% 15.8% 13.0% 31.7% 31.8% 3.5% Wholesale Trade 2.5% 15.0% 11.3% 27.5% 43.8% 0.0% Retail Trade 5.6% 27.4% 9.7% 31.9% 27.2% 2.0% Information 5.0% 15.3% 11.3% 33.8% 21.3% 1.0% Finance, Insurance, & Real Estate 10.2% 19.4% 12.3% 36.7% 22.0% 1.6% Accounting Services 12.0% 22.0% 10.0% 43.3% 12.0% 1.3% Engineering Services 12.1% 16.4% 24.2% 35.0% 11.4% 3.3% Management Consulting 7.8% 19.2% 8.5% 53.8% 18.2% 3.6% Misc. Prof. Services 10.1% 14.5% 7.2% 49.5% 18.1% 0.5% Social Services 16.3% 25.0% 11.7% 22.5% 27.3% 0.3% Government 19.0% 16.0% 13.0% 30.0% 18.8% 7.0%

9 National Association of Colleges and Employers Internship & Co-op Survey Report 9 About one-quarter (24.6 percent) of employers offer a rotational program for their interns and co-ops to explore different areas and aspects of their organizations. (See Figure 6.) Figure 6: Offering a rotational program as part of internship or co-op # of Responses % of Responses Yes for interns % Yes for co-ops % Yes for both interns and co-ops 7 2.8% No % Total % The hiring of interns and co-ops for full-time, entry-level positions increased from In 2014, 41.2 percent of fulltime entry-level hires are expected to come from the employers own internship programs. Likewise 36.9 percent of fulltime entry-level hires in 2014 are expected to come from the employers own co-op programs. (See Figure 7.) Figure 7: Trends in hiring entry-level professional from internal internship and co-op programs Intern Co-op 35.9% 35.3% 30.0% 30.7% 28.6% 28.0% 24.5% 23.3% 44.6% 42.0% 41.2% 39.1% 37.5% 34.9% 35.6% 36.9% 34.6% 34.8%

10 10 Internship & Co-op Survey Report National Association of Colleges and Employers HIRING PROJECTIONS Unchanged from previous years, 96.9 percent of employers report that they plan to hire interns and/or co-ops during According to retrospective intern and co-op hiring figures from 2013 and projected hiring figures for 2014, employers expect to hire 3.4 percent fewer interns and 4.4 percent more co-ops in (See Figure 8.) Figure 8: Trends in internship and co-op hiring (in percents) % 8.6% 8.5% 3.4% 4.1% 4.9% 5.8% 4.4% 8.3% 2.9% 7.5% 3.7% 6.8% -1.8% 2.9% 2.7% -1.8% -2.8% -3.4% -6.8% -11.2% Intern Co-op -20.7%

11 National Association of Colleges and Employers Internship & Co-op Survey Report 11 However, while overall internship hiring figures indicate that employers plan to hire fewer interns in 2014, the projected decrease applies only to associate, master s, and doctoral degree-level students. Employers actually plan to hire 1.3 percent more bachelor s degree-level interns in For co-ops, employers indicated that they will hire the same number of students at the associate level, and 3.3 percent more students at the bachelor s level. (See figures 9 and 10.) Figure 9: Intern hiring, 2013 vs. 2014, by degree level Degree Level # of Hires # of Hires % Change Overall 27,576 26, % Associate % Bachelor s 21,506 21, % Master s 4,450 4, % Ph.D. 1, % Figure 10: Co-op hiring, 2013 vs. 2014, by degree level Degree Level # of Hires # of Hires % Change Overall 2,408 2, % Associate % Bachelor s 2,239 2, % Master s % Ph.D %

12 12 Internship & Co-op Survey Report National Association of Colleges and Employers INTERNSHIP AND CO-OP HIRING PROJECTIONS BY INDUSTRY AND REGION Although overall intern hiring was projected to decrease from 2013, employers in the following industries plan to hire significantly more interns in 2014: Food and beverage manufacturing, Retail trade Information, Finance, Insurance and real estate, Accounting services, and Miscellaneous professional services. (See Figure 11.) Likewise, while overall co-op hiring was projected to increase from 2013, employers in the following industries plan to hire significantly fewer co-ops in 2014: Oil and gas extraction, Utilities, Construction, Computer and electronics manufacturing, Motor vehicle manufacturing, and Miscellaneous professional services. (See Figure 12.)

13 National Association of Colleges and Employers Internship & Co-op Survey Report 13 Figure 11: Intern hiring, 2013 vs. 2014, by industry Industry # of Hires # of Hires % Change Overall 27,576 26, % Oil & Gas Extraction % Utilities 1,139 1, % Construction % Food & Beverage Mfg % Chemical (Pharmaceutical) Mfg. 3,100 3, % Computer & Electronics Mfg. 5,365 3, % Motor Vehicle Mfg % Misc. Mfg. 1, % Wholesale Trade* % Retail Trade 1,272 1, % Transportation* % Information 1,895 2, % Finance, Insurance, & Real Estate 4,183 4, % Accounting Services 2,919 3, % Engineering Services % Management Consulting 1,165 1, % Misc. Prof. Services % Social Services* % Recreation & Hospitality* % Misc. Support Services* % Government* % *Caution should be used when viewing these figures, as the responses for this survey item included less than five respondents from the corresponding industry category.

14 14 Internship & Co-op Survey Report National Association of Colleges and Employers Figure 12: Co-op hiring, 2013 vs. 2014, by industry Industry # of Hires # of Hires % Change Overall 2,408 2, % Oil & Gas Extraction % Utilities % Construction % Food & Beverage Mfg % Chemical (Pharmaceutical) Mfg % Computer & Electronics Mfg % Motor Vehicle Mfg % Misc. Mfg % Retail Trade % Transportation* % Information % Finance, Insurance, & Real Estate % Accounting Services % Engineering Services % Management Consulting % Misc. Prof. Services % Recreation & Hospitality* % Misc. Support Services* % Government* % *Caution should be used when viewing these figures, as the responses for this survey item included less than five respondents from the corresponding industry category.

15 National Association of Colleges and Employers Internship & Co-op Survey Report 15 Regionally, while employers say intern hiring will decrease, employers in the Northeast plan to increase hiring by 10.0 percent in For co-ops, while hiring is projected to increase, employers in the Midwest project a 14.7 percent decrease from Although two-year co-op hiring figures for the western region are too low to suggest anything definitive, the data may be an indicator of a gradually increasing interest in co-ops among those employers, who have not traditionally embraced co-operative education programs. (See figures 13 and 14.) Figure 13: Intern hiring, 2013 vs. 2014, by region Region # of Hires # of Hires % Change Overall 27,576 26, % Northeast 8,446 9, % Southeast 6,156 5, % Midwest 6,800 6, % West 6,145 5, % Non-U.S % Figure 14: Co-op hiring, 2013 vs. 2014, by region Region # of Hires # of Hires % Change Overall 2,408 2, % Northeast 993 1, % Southeast % Midwest % West % Non-U.S % RETURNING STUDENTS Employers project that an average of 15.1 percent of their 2014 interns will be students who interned with them in In 2013, 13.1 percent of interns were rehires. By industry, employers in the retail trade, motor vehicle manufacturing, and miscellaneous professional services sectors project the greatest average percentage of intern rehires in The overall rehire rate for co-ops is much higher than that of interns, but appears to be decreasing. Employers project that an average of 56.3 percent of their co-ops in 2014 will be students who completed a co-op program with them in The average co-op rehire figure for 2013 was By industry, the highest co-op rehire rates are seen among employers in the chemical (pharmaceutical) and miscellaneous manufacturing sectors (38.8 percent and 59.7 percent, respectively).

16 16 Internship & Co-op Survey Report National Association of Colleges and Employers RECRUITING Despite the growth of online recruiting platforms, face-to-face strategies for internship and co-op hiring continue to be the most heavily funded and most highly rated recruiting activities. Since 2010, career fairs, on-campus information sessions, and on-campus recruiting sessions received 69.9 percent of employers entire internship recruiting budgets, and 59.4 percent of their co-op recruiting budgets. These strategies, along with job listings on career services websites, cultivating key faculty contacts, and referrals from current or formers interns and co-ops, are rated among the most highly effective recruiting activities. (See figures 15 through 18.) Figure 15: Internship budget allocations Activity Mean Advertising (online) 7.3% 8.6% 4.0% 3.6% 6.5% Advertising (print) 6.1% 3.0% 2.4% 2.3% 3.0% Career/job fairs 35.9% 37.7% 39.3% 36.5% 34.5% Cultivating key faculty contacts 10.8% 6.7% 5.2% 4.5% 5.9% Hosting an open house 5.0% 3.7% 1.4% 2.4% 3.1% Job listings (career services office) 11.1% 8.7% 4.5% 4.7% 6.2% Job listings (online) 8.7% 5.5% 3.9% 6.9% 9.6% Online networking 2.4% 1.8% 1.2% 1.5% 3.2% On-campus information sessions 13.2% 13.0% 10.6% 8.8% 13.1% On-campus recruiting 28.0% 22.3% 20.7% 22.5% 22.3% Outreach to clubs, fraternities, and sororities 12.3% 7.3% 5.4% 4.9% 7.0% Referral from current or former intern/co-op 10.4% 4.2% 1.4% 1.5% 3.1%

17 National Association of Colleges and Employers Internship & Co-op Survey Report 17 Figure 16: Internship recruiting activities effectiveness rankings # of Responses Career/job fairs On-campus recruiting Referral from current or former intern/co-op Job listings (career services website) On-campus information sessions Job listings (org. website) Cultivating key faculty contacts Job listings (career services office) Alumni referrals Job listings (commercial career website) Outreach to clubs, fraternities, & sororities Online networking Recruitment advertising Hosting an open house Advertising in campus newspapers Respondents were given a list of criteria (plus an option to add others) and asked to rank their top three. NACE researchers then applied scores to each ranking: each 1 received 5 points, 2 received 3 points, and 3 received 1 point. Points were then summed to get a total score for each criterion. Total

18 18 Internship & Co-op Survey Report National Association of Colleges and Employers Figure 17: Co-op budget allocations Activity Mean Advertising (online) 6.6% 8.0% 3.8% 3.9% 2.5% Advertising (print) 7.9% 1.8% 1.9% 2.0% 2.9% Career/job fairs 30.2% 38.9% 37.4% 37.7% 34.3% Cultivating key faculty contacts 8.9% 5.7% 7.9% 4.3% 7.7% Hosting an open house 4.6% 3.9% 1.2% 1.8% 3.1% Job listings (career services office) 18.4% 8.2% 8.1% 6.7% 6.7% Job listings (online) 11.3% 5.2% 3.3% 3.8% 10.0% Online networking 1.3% 1.0% 0.6% 1.1% 1.9% On-campus information sessions 14.6% 12.6% 11.1% 9.0% 9.3% On-campus recruiting 26.6% 20.3% 19.2% 24.8% 15.8% Outreach to clubs, fraternities, and sororities 7.5% 5.5% 3.9% 3.9% 3.7% Referral from current or former intern/co-op 4.4% 2.1% 1.4% 1.0% 4.5%

19 National Association of Colleges and Employers Internship & Co-op Survey Report 19 Figure 18: Co-op recruiting activities effectiveness rankings # of Responses Career/job fairs On-campus recruiting Job listings (career services website) Cultivating key faculty contacts Referral from current or former intern/co-op On-campus information sessions Job listings (org. website) Job listings (career services office) Alumni referrals Online networking Advertising in campus newspapers Outreach to clubs, fraternities, & sororities Job listings (commercial career website) Hosting an open house Recruitment advertising Respondents were given a list of criteria (plus an option to add others) and asked to rank their top three. NACE researchers then applied scores to each ranking: each 1 received 5 points, 2 received 3 points, and 3 received 1 point. Points were then summed to get a total score for each criterion. Total

20 20 Internship & Co-op Survey Report National Association of Colleges and Employers CYCLE TIME Respondents were asked to report the length, in days, of three specific recruiting cycles: The average number of days between publicly listing a job opportunity and holding an interview, The interview date and the date the position is offered to a candidate, and The date of the offer and the deadline for acceptance/rejection. Overall, posting-to-interview cycle times did not vary from 2013, with a mean of 33 days and median of 30 days in Interview-to-offer cycles times also did not change significantly from 2013, with a mean of 20 days and a median of 14 days. Offer-to-acceptance cycle times, however, saw a notable increase. Compared to the 2013 report, the mean rose from 11 days to 13 days, and the median rose from 7 days to 14 days. For the posting-to-interview cycle time, wholesale trade employers reported a mean and median of 60 days, while those in the oil and gas extraction industry reported a mean of 16 days and a median of 14 days. For the interview-to-offer cycle time, government agencies reported the longest waiting period, with a mean of 60 days and a median of 30 days. Retail trade employers reported a mean of 13 days and a median of 14 days. Employers in the wholesale trade and accounting services sectors reported the longest offer-to-acceptance cycles with reported means of 22 days and 25 days, respectively, and reported medians of 22 days and 14 days, respectively. Employers in the motor vehicle manufacturing industry reported the shortest time period before a job offer expired a mean and median of just five days. (See Figure 19.)

21 National Association of Colleges and Employers Internship & Co-op Survey Report 21 Figure 19: Cycle times in number of days, by industry Industry Posting to Interview Interview to Offer Offer to Acceptance Mean Median Mean Median Mean Median Overall Oil & Gas Extraction Utilities Construction Food & Beverage Mfg Chemical (Pharmaceutical) Mfg Computers & Electronics Mfg Motor Vehicle Mfg Misc. Mfg Wholesale Trade Retail Trade Information Finance, Insurance, & Real Estate Accounting Services Engineering Services Management Consulting Misc. Prof. Services Social Services Government

22 22 Internship & Co-op Survey Report National Association of Colleges and Employers SCHOOL SELECTION The top six reasons respondents chose particular schools for their intern and co-op recruiting in 2014 are the same as they were in 2012 and These top school selection criteria are consistent with those for full-time college hires, which is to be expected given the intimate connection between internships and full-time recruiting. (See Figure 20.) Figure 20: School selection criteria: top reasons Total # of Responses Majors offered Quality of programs Past recruiting experience at school Location of school Success of school s alumni in your organization Diversity of student body Accreditation of school National rankings Reputation of school Interest of school s graduates in your organization Retention history with school s alumni Size of school Executives are alumni of school Average GPA Cost to recruit at school Helpfulness of career services staff Respondents were given a list of criteria (plus an option to add others) and asked to rank their top three. NACE researchers then applied scores to each ranking: each 1 received 5 points, 2 received 3 points, and 3 received 1 point. Points were then summed to get a total score for each criterion.

23 National Association of Colleges and Employers Internship & Co-op Survey Report 23 CONVERSION/RETENTION INTERN AND CO-OP CONVERSION RATES Although the intern conversion rate reached an all-time high of 58.6 percent in 2012, it dropped to 48.4 percent in 2013, and in 2014, settled at 51.2 percent a figure consistent with data of the mid-2000s pre-recession period. Offers of full-time employment to interns increased for the first time since 2011, reaching an offer rate of 64.8 percent in However, the acceptance rate declined, falling to a six-year low of 79.0 percent. (See Figure 21.) Figure 21: Trends in internship conversion (by percents) % 83.9% 86.5% 86.5% 85.6% 77.6% 79.0% 73.0% 72.9% 68.1% 72.5% 63.3% 66.7% 64.8% 57.6% 72.6% 69.6% 61.2% 67.7% 56.5% 52.3% 64.9% 44.7% 56.6% 57.7% 58.6% 53.0% 50.5% 53.3% 47.3% 48.4% 51.2% 35.6% Offer Rate Acceptance Rate Conversion Rate

24 24 Internship & Co-op Survey Report National Association of Colleges and Employers In 2014, co-op hiring saw positive increases in all three areas: conversion rates, offer rates, and acceptance rates. The co-op conversion rate rose from 35.9 percent in 2012 to 46.7 percent in The co-op offer rate sharply increased in two years from 38.8 percent in 2012 to 56.8 percent in Meanwhile, the co-op acceptance rate appears to be rising slowly, moving from 75.5 percent in 2013 to 82.2 percent in (See Figure 22.) Figure 22: Trends in co-op conversion (by percents) % 60.2% 49.6% Offer Rate Acceptance Rate Conversion Rate 52.8% 48.0% 86.3% 89.8% 80.7% 92.0% 74.9% 87.8% 78.5% 75.5% 74.2% 74.9% 73.3% 65.7% 63.2% 71.0% 30.1% 64.0% 59.2% 52.4% 82.2% 48.8% 56.8% 55.7% 60.4% 55.5% 38.8% 35.9% 36.9% 46.7% When broken down by level of degree, it is clear that master s-level interns are the most likely to receive an offer of full-time employment, and are also among the most likely to accept those offers, resulting in the highest intern conversion rates among all four degree levels. In terms of co-ops, bachelor s-level students are only about half as likely as doctorallevel students to receive an offer of full-time employment. (It should be noted, however, that response rates regarding doctoral-level students are low and may not offer any definitive interpretations.) (See figures 23 and 24.) Figure 23: Intern conversion, by degree level Offer Rate Acceptance Rate Conversion Rate Overall 64.8% 79.0% 51.2% Associate 69.4% 66.7% 46.3% Bachelor s 60.5% 77.4% 46.8% Master s 84.7% 84.0% 71.1% Ph.D. 51.7% 88.9% 46.0%

25 National Association of Colleges and Employers Internship & Co-op Survey Report 25 Figure 24: Co-op conversion, by degree level Offer Rate Acceptance Rate Conversion Rate Overall 56.8% 82.2% 46.7% Associate 100.0% 100.0% 100.0% Bachelor s 53.7% 82.2% 44.1% Master s 66.7% 72.5% 48.3% Ph.D. 97.1% 100.0% 97.1% INTERN AND CO-OP RETENTION RATES As in the past, internship and co-op experience is strongly associated with a longer tenure of employment. Overall, after one year, employers retain about three-fourths (77.5 to 78.0 percent) of their new college hires who have internship experience either internal (internship with the same employer) or external (internship with a different employer). Just under two-thirds (62.8 percent) of new college hires without any past internship experiences are retained after one year. The same pattern holds true for five-year retention rates. After five years, 57.3 percent of employees hired through an internal internship program were retained, and 52.2 percent with internship experiences through another employer were retained, while 45.0 percent who were hired without any internship experience were retained. (See figures 25 and 26.) Figure 25: Average retention rates: one year, by industry Industry Own Intern Other Intern No Internship Mean Overall 78.0% 77.5% 62.8% Utilities 77.4% 95.5%* 95.0%* Construction 64.8% 56.2%* 53.8%* Food & Beverage Mfg. 66.5% 81.5%* 54.4% Chemical (Pharmaceutical) Mfg. 86.6% 82.2% 65.2% Computers & Electronics Mfg. 68.3% 86.7%* 87.0%* Misc. Mfg. 78.1% 81.2% 75.0% Retail Trade 72.3% 80.8% 75.3%* Finance, Insurance, & Real Estate 82.5% 81.0% 95.5% Engineering Services 83.4% 64.0%* 10.0%* Management Consulting 77.0% 74.7% 61.7% *Caution should be used when viewing these figures, as the responses for that survey item included less than five respondents from the corresponding industry category. Industries with at least five respondents in one or more columns are displayed.

26 26 Internship & Co-op Survey Report National Association of Colleges and Employers Figure 26: Average retention rates: five year, by industry Industry Own Intern Other Intern No Internship Mean Overall 57.3% 52.5% 45.0% Chemical (Pharmaceutical) Mfg. 76.1% 69.4% 56.3% Misc. Mfg. 55.1% 56.1% 81.7%* Retail Trade 54.2% 50.3%* 60.0%* Finance, Insurance, & Real Estate 57.5% 56.3% 46.4% Management Consulting 39.0% 37.0% 24.4% *Caution should be used when viewing these figures, as the responses for that survey item included less than five respondents from the corresponding industry category. Industries with at least five respondents in one or more columns are displayed. Co-ops show a similar pattern of retention. Overall, after one year, 59.7 percent of former co-op students turned employees are retained; 51.9 percent of new college hires from external co-op programs are retained. However, 43.0 percent of new college hires without any co-op experience are retained after one year. At the five-year mark, 43.2 percent of internal hires, 34.9 percent of external hires, and 30.5 percent of non-co-op hires are retained. (See Figure 27.) Figure 27: Average retention rates: one year and five year Industry Own Co-op Other Co-op No Co-op Mean One-year retention rate 59.7% 51.9% 43.0% Five-year retention rate 43.2% 34.9% 30.5%

27 National Association of Colleges and Employers Internship & Co-op Survey Report 27 COMPENSATION UNPAID VS. PAID INTERNSHIPS NACE members have consistently provided their interns with wages. In 2014, employers reported that an average of 97.5 percent of their internship programs were paid compared to 99.4 percent in 2013, and 99.6 percent in SALARIES Continuing a trend seen in the 2013 Guide to Compensation for Interns & Co-ops, the average hourly wage rates for interns have remained relatively unchanged, with only slight increases of $0.52 to $0.70, depending on the year of study. The average hourly wage rates for co-ops are increasing at a faster rate. Compared to the 2013 report, their rates have increased from $0.29 to $5.89, depending on the year of study, with the more pronounced increases applying to older students. For example, using the above figures, freshman rates increased by $0.29, while master s second-year rates increased by $5.89. The average hourly wage rate for bachelor s degree interns is $16.35, an increase from $16.26 in 2013 and $16.21 in The average hourly wage rate for master s degree interns also increased to $22.50 up from $21.90 in 2013 and $21.93 in Overall, master s degree interns are paid about 28 percent more than bachelor s degree interns. The average hourly wage rate for bachelor s degree co-ops also saw increases from 2013, rising from $16.23 to $ The average hourly wage rate for master s degree co-ops has fluctuated in recent years, moving from $22.44 (2012) to $20.58 (2013) to $25.04 (2014). Master s degree co-ops earn about 30 percent more than bachelor s degree co-ops. The specific year in school also correlated for interns and co-ops. In general, senior-year interns earn about 16 percent more than freshman-year interns, and senior-year co-ops earn about 21 percent more than freshman-year co-ops. Overall, bachelor s degree and master s degree interns and co-ops majoring in engineering and computer science earned consistently high average hourly wage rates. For senior-year interns, those majoring in computer science and engineering earn average hourly wage rates of $19.16 and $20.18, respectively. Senior-year interns majoring in communication and education earn the lowest average hourly wage rates $16.34 and $16.82, respectively. (See figures 28 and 29.) Intern and co-op compensation information based on major, industry, region, degree, and year in college, is available in NACE s 2014 Guide to Compensation for Interns & Co-ops.

28 28 Internship & Co-op Survey Report National Association of Colleges and Employers Figure 28: Average intern hourly wage rates, by year of study # of Responses Mean Freshman 671 $15.05 Sophomore 843 $16.10 Junior 1,151 $17.19 Senior 992 $17.94 Master s degree, first year 748 $22.21 Master s degree, second year 593 $23.06 Figure 29: Average co-op hourly wage rates, by year of study # of Responses Mean Freshman 209 $15.17 Sophomore 242 $16.74 Junior 278 $17.93 Senior 273 $19.24 Master s degree, first year 178 $23.46 Master s degree, second year 157 $26.82 SIGNING BONUSES Nearly one-fifth of employers (18.0 percent) plan to offer signing bonuses to interns and co-ops in 2014 a small increase from Overall, the signing bonuses offered to interns and co-ops made notable increases. Using median figures, interns receive $250 more in 2014 than in 2013, and co-ops receive $1,000 more. (See figures 30 through 33.) Figure 30: Offered signing bonus to interns/co-ops, 2013 Offered % of Respondents Answering, Yes 16.7% # of Respondents Answering, Yes 37 Total # of Respondents 222

29 National Association of Colleges and Employers Internship & Co-op Survey Report 29 Figure 31: Offered signing bonus to interns/co-ops, 2014 Offered % of Respondents Answering, Yes 18.0% # of Respondents Answering, Yes 38 Total # of Respondents 211 Figure 32: Signing bonus amount to interns/co-ops, 2013 Interns Co-ops Mean Median Mean Median $3,248 $2,250 $6,286 $3,000 Total # of Respondents 30 7 Figure 33: Signing bonus amount to interns/co-ops, 2014 Interns Co-ops Mean Median Mean Median $3,265 $2,500 $4,917 $4,000 Total # of Respondents 29 6

30 30 Internship & Co-op Survey Report National Association of Colleges and Employers BENEFITS Overall, more employers provide benefits to their interns and co-ops, continuing a multi-year trend of increasing benefits provisions. The most common benefits offered are service time, paid holidays, and social activities. Few employers provide dental insurance, scholarship funding, or tuition reimbursement. (See Figure 34.) Figure 34: Benefits provided to interns and co-ops Interns Co-ops Benefit # of Responses % of Responses # of Responses % of Responses Dental % % Service time % % 401(k) % % Medical % % Paid holidays % % Social activities % % Scholarship % 8 7.0% Tuition reimbursement 9 4.1% 5 4.4% Vacation % % No benefits % % RELOCATION ASSISTANCE The percentage of employers that offer relocation assistance to interns and co-ops remain unchanged from 2013, with 55.0 percent of employers planning to provide this service to interns in 2014, and 44.1 percent planning to provide it to co-ops. Employers in the oil and gas extraction and food and beverage manufacturing industries are the most likely to providing relocation assistance to interns. Those in the chemical (pharmaceutical) and miscellaneous manufacturing industries are the most likely to provide relocation assistance to co-ops. The most common components of relocation assistance programs include housing stipends and moving allowances. Overall, the median dollar amount allotted to individual intern and co-op students is $1,500. (See Figures 35 through 37.)

31 National Association of Colleges and Employers Internship & Co-op Survey Report 31 Figure 35: Relocation assistance, by industry Interns Co-ops % of Responses Answering, Yes Overall 55.0% 44.1% Oil & Gas Extraction 83.3% - Utilities 44.4% - Construction 50.0% 40.0% Food & Beverage Mfg. 90.9% - Chemical (Pharmaceutical) Mfg. 73.1% 68.4% Computers & Electronics Mfg. 69.6% 40.0% Motor Vehicle Mfg. 30.0% 37.5% Misc. Mfg. 69.6% 71.4% Retail Trade 47.1% - Information 50.0% - Finance, Insurance, & Real Estate 48.0% 14.3% Accounting Services 60.0% - Engineering Services 25.0% - Management Consulting 35.7% 33.3% Misc. Prof. Services 36.4% - Government 40.0% - Total # of respondents Figure 36: Benefits provided to interns and co-ops Interns Co-ops # of Responses % of Responses # of Responses % of Responses House hunting 9 7.8% % Housing stipend % % Moving allowance % % Provide housing % % Set allowance % %

32 32 Internship & Co-op Survey Report National Association of Colleges and Employers Figure 37: Relocation assistance: dollar amounts Interns Co-ops Mean Median Mean Median Average relocation amount $2,364 $1,500 $1,852 $1,500 Total relocation budget $70,607 $5,000 $25,900 $2,500

33 National Association of Colleges and Employers Internship & Co-op Survey Report 33 SUMMARY Internship and co-op hiring is intimately tied to the college hiring market as a whole. Key metrics explored in this report, however, suggest a troubling pattern of stagnation. Intern hiring has decreased for the third year in a row, and the percentage of interns accepting offers of full-time employment has steadily declined over the past three years. Adjusting for inflation, compensation rates for interns have remained unchanged since the recession, although it is unclear precisely why this is. Are employers compelled by economic circumstances to not increase salaries for interns, or are they choosing to do so for other unknown intra-organizational reasons? In either case the coinciding of static compensation figures and declining acceptance rates suggests that intern hiring and thus, the college labor market as a whole is still struggling to recover in the post-recession period. Multi-year data from NACE s Student Survey Report further support this argument by showing that interns who participate in paid internships are more likely to accept offers for full-time positions at the same organization. Careful examination will be taken in subsequent reports to offer further insight into the movement of internship hiring, and in turn, the future of the college labor market as a whole.

34 34 Internship & Co-op Survey Report National Association of Colleges and Employers APPENDIX SURVEY RESPONDENTS Of the 264 participants in the survey, 202 agreed to be identified. The following is a list of those participants: AbbVie BASF Corporation ConocoPhillips Exelon Corporation Advanced Micro Devices, Inc. Aerojet Rocketdyne Agilent Technologies, Inc. AIG Air Products & Chemicals Inc. Allscripts American Axle & Manufacturing Holdings, Inc. American Red Cross AmeriHealth Mercy Family of Companies Anheuser-Busch Companies, Inc. Applied Materials Inc. ArcelorMittal USA Armstrong Backus & Co. LLP Ascend Performance Materials Aspen Technology Inc. Avery Dennison Corporation Barclays Bates White, LLC Baxter Healthcare Corporation BBVA Compass Belk Booz Allen Hamilton Inc. BP America Brocade Communications Systems, Inc. BuhlerPrince Inc. Calpine Corporation Cameron Cardinal Health CDM Smith CGI Federal CH2M HILL Chesapeake Energy Corporation Chevron Corporation Ciena Corporation Collective Brands (Payless ShoeSource) Comcast Corporation Compass Group North America Continental AG COUNTRY Financial Covance Inc. Cree, Inc. Crestron Electronics Delphi Automotive Systems, LLC Dick s Sporting Goods Discover Financial Services Disney Worldwide Services Dover Corporation Duke Energy Corporation dunnhumbyusa DuPont Dynamics Research Corporation Dynetics Inc. EchoStar Ecolab Inc. Edward Jones ENERCON Services, Inc. Entergy Services, Inc. Ernst & Young LLP Evonik Degussa Corporation Express Scripts, Inc. Exxon Mobil Corporation Forrester Construction Company Foster Care to Success: America s College Fund for Foster Youth Fujitsu America Inc. GAF Corporation Gannett Co., Inc. GAP Inc. Garmin International Inc. General Dynamics C4 Systems General Mills Inc. Genzyme Corporation Georgia Tech Research Institute Gilead Sciences, Inc. GuideStone Financial Resources HCA Healthcare Henkels & McCoy, Inc. Herbert, Rowland & Grubic, Inc. Hewlett-Packard Company Barilla America Inc. ConAgra Foods, Inc. Excella Consulting Honda R&D Americas, Inc.

35 National Association of Colleges and Employers Internship & Co-op Survey Report 35 Hormel Foods Corporation Huntington Ingalls Industries Illumina INC Research INEOS Infineum USA L.P. Ingersoll-Rand Company Intel Corporation Invensys Inc. Jeremiah Program Kellogg Company Kennedy & Coe LLC KeyBank Kinze Manufacturing, Inc. L-3 Communications Integrated Systems Lake Shore Cryotronics, Inc. Lam Research Corporation Lend Lease Inc. Liberty Mutual Insurance Company Linbeck Corporation Longview Fibre Paper and Packaging, Inc. Lord Corporation LSI Corporation Lutron Electronics Co. Inc. Macy s, Inc. Marsh Inc. Mattress Firm Maximus McKesson Corporation Medline Industries, Inc. Mercer Merck & Co., Inc. Meritor Inc. Messer Construction Co. Moen Incorporated Mondeléz International Motorola Mobility Motorola Solutions, Inc. MTS Systems Corp. NASA - Johnson Space Center Nationwide NetApp Newfield Exploration Company Nexen, Inc. Niagara Bottling, LLC NiSource Northeast Utilities Northrop Grumman Corporation Northwest Farm Credit Services Pacific Gas and Electric Company Pariveda Solutions Inc. Parsons Corporation PETCO PlastiComp, Inc. Polaris Industries, Inc. PPL Corporation Press Ganey Associates, Inc. PrimeSource Building Products, Inc. Progressive Insurance Protiviti Inc. QLogic Corporation Quicken Loans QVC Inc. Riverhead Resources Rogers Corporation Rosetta Rosetta Resources Ross Stores Inc. Saks Fifth Avenue Sandia National Laboratories Savannah River Nuclear Solutions Seagate Technology Sears Holdings Corporation Shaw Industries, Inc. Shawmut Design and Construction Skanska USA Inc. SKF USA Southwest Airlines Co. Speedway LLC State Farm Insurance Cos. State Street Corporation Strattec Security Corporation Sunbelt Rentals SWIFT T. Rowe Price Associates Tata Consultancy Services TechSmith Corporation Texas Instruments Incorporated The Bank of New York Mellon Corporation The Field Museum The Lubrizol Corporation The Schwan Food Company The Timken Company Tindall Corporation TMK Ipsco Towers Watson TTX Company Turner Construction Company U.S. Air Force U.S. Comptroller of the Currency U.S. Department of State Union Bank Union Pacific Railroad Company United Launch Alliance Valero Energy Corporation Verizon W.W. Grainger, Inc. Walmart ecommerce WellPoint, Inc. Woolpert LLP WPX Energy Zachry Zipcar Meijer, Inc. Procter & Gamble Co. Teradata Corporation

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