Small to midsized businesses (SMBs) often offer internships to build talent and foster growth. These programs usually benefit the organization and college students, enabling companies to leverage the most current skillsets while giving tomorrow's workforce real-world experience. 

Many SMBs wonder if providing these opportunities is a good idea. With remote and hybrid options becoming more common post-pandemic and evolving legal and ethical considerations, they must weigh the pros and cons. However, you can boost your brand's reputation with the right approach and support diversity, equity and inclusion (DEI) objectives.

Why Internships Matter for SMBs

Internships help organizations find future employees, allowing them to identify and develop their skills and bring fresh perspectives and ideas into the workplace. Observing and evaluating interns' performance will also enable them to reduce the risk and cost of hiring someone new. 

According to the 2022 NACE Winter Quick Poll on Recruiting and Career Services, 80% of employers believe that internships deliver the best return on investment in terms of hiring for entry-level positions.

SMBs who implement internship programs also:

• Receive support and assistance with daily tasks, allowing existing teams to concentrate on more strategic work.
• Find innovative solutions and process improvements with new perspectives and ideas from someone on the outside.
• Improve brand reputation with a demonstrated commitment to professional development.
• Strengthen relationships with universities and colleges, increasing campus visibility and recruitment.
• Promote DEI objectives by creating a culture of inclusivity.
• Bridge generational gaps, providing mentorship and industry experience.

Current college students are adept at the latest technologies, including artificial intelligence (AI). According to the Digital Education Council, 86% of students regularly use AI in academic settings, while 54% use it weekly.

6 Tips for Offering Internships at Your SMB

Offering internships at your SMB is a decision you should not make lightly. It is crucial to plan accordingly to ensure you provide the best opportunities for professional growth. Keep these five tips in mind when pursuing an internship program.

1. Determine Your Readiness 

You must assess whether your SMB can provide the internship experience a prospect needs and deserves. Ask yourself if you have capable staff to mentor and supervise interns, and whether there are projects they can learn from. 

Additionally, you must evaluate your resources and setup, including the workspace, technology and training methods. Your brand's digital infrastructure must be suitable for teamwork and communication to support remote interns, while the office must be safe and accessible for in-person roles.

2. Consider Legal and Ethical Factors

Review the legalities around SMB internship programs to guarantee regulatory compliance. The Fair Labor Standards Act does not consider interns employees, meaning you do not necessarily need to pay them. However, this is only true as long as they benefit from the opportunity the most, which is often a subjective and ambiguous determination.

The following primary beneficiary test can help you decide if your interns are volunteers or employees:

• They are aware that you will not compensate them.
• The training they receive is similar to what they receive at their school.
• The program reflects their current academic program, and they will receive credit for it.
• The internship fits into their curriculum calendar.
• The opportunity is limited to the time they are in their program.
• Their contribution to the workplace complements but does not replace the work produced by existing employees.
• They understand that the internship may not result in a job offer. 

3. Create a Valuable Internship Experience  

Oftentimes to gain professional experience. If you create an internship program at your SMB, ensure it is valuable to the intern. The best way to start is to establish clear goals, expectations, learning objectives, responsibilities and available mentors.

Allow interns to shadow experienced team members who offer guidance, support and insights that serve their growth — this will make them feel more empowered, engaged and appreciated. Likewise, give them meaningful projects in which they can drive tangible results and garner essential skills. 

4. Offer Flexibility and Accommodations

According to one survey, more than 20% of teenagers between ages 16 and 19 worked and attended school simultaneously in 2020, and many of these students seek out internship opportunities in particular when looking for an after-work job to help them decide on a future career. 

The amount of school- and college-age teens and adults seeking internship positions highlights the need for flexibility and understanding from employers. Many interns may be juggling coursework, exams, and other commitments outside of their internship. By offering flexible work hours, remote work options and understanding deadlines, you can create a supportive environment that allows interns to succeed both professionally and academically.

5. Recruit and Attract the Right Candidates 

SMBs can find interns at local universities, community colleges and trade schools who are eager and ready to learn in a professional environment. Posting internship opportunities online is among the easiest ways to expand your reach, while DEI organizations can help you tap in to overlooked talent pools.

Ensure you use engaging descriptions when crafting an internship listing, including what interns will learn, your company culture and compensation. The more transparent you are, the better applicants you will attract.

Internships can provide a buffer against costly turnover. On average, employers spend $5,000 per new hire on advertising a job and recruiting potential candidates. There is always the possibility of hiring an intern who has gained on-the-job experience and understands business operations. 

6. Measure Success and Gather Feedback 

It is crucial to measure the success of your internship program to make improvements and ensure it carries value. Consider tracking metrics like quality completion of projects and assigned tasks, intern satisfaction, and how many interns become full-time hires. 

Studies suggest that internship satisfaction helps shape students' career identities, particularly regarding growth-focused contracts. This means the workplace allows them to develop their skills, strengths and potential for greater career success.

You can collect feedback from program participants by issuing surveys and questionnaires with room for them to leave comments. Use these insights to tweak the program for future interns and create a place that encourages learning and flexibility.  

Are There Cons to Internship Programs?

Despite gaining much, SMBs face several drawbacks when offering internship opportunities. For instance, they may need to budget for intern salaries if it is a paid program. Staff must also train and mentor them, which takes time away from completing their tasks. 

Businesses also risk interns being uncommitted and inexperienced, especially if they carry a short-term focus. They may not be mature enough to handle the company’s expectations and decorum or be invested in organizational success. 

Other cons include noncompliance with labor laws, increasing workloads, and potential conflicts between interns and existing team members. You must decide whether you have the resources to overcome these challenges and deliver positive experiences for everyone.

Internships Can Deliver Lasting Benefits for SMBs

SMBs have much to gain from creating internship programs for eager and ready college students and recent graduates. With careful planning, you can be a catalyst in shaping the next generation of innovative professionals.