Making the Case for Continuing a Strong Internship Program in a Weakened Economy

by Harry Poynter

Many companies in the Kansas City community realize the important role that business interns play in their success during periods of economic growth. These companies make excellent use of the abilities, knowledge and productivity of interns, while allowing the interns to expand their class- room visions and understanding of their chosen academic discipline. In today's weakened economy, however, some management teams are choosing to reduce their internship programs while others seize the opportunity to expand their placements, acquiring much needed assistance at a lower cost while maintaining this vital recruiting link with academic institutions.

Many academic institutions have witnessed the close correlation between leading economic indicators and the placement rates of interns. They understand why it is sometimes difficult for human resource offices to justify continued emphasis on internship programs at a time of temporary workforce reductions. However, they also believe that it is important to understand what benefits are derived from maintaining strong internship programs and what constitutes such programs.

In calendar year 2002, The Center for Business Internships in Central Missouri State University's Harmon College of Business Administration facilitated 191 student internships with 131 different employers; the student interns earned 990 hours of academic credit and over $822,942; these figures reflect a decrease of about 15 percent from the 10-year average. From an academic viewpoint, the benefits are obvious. Dr. George Wilson, dean of the college, said "The internship program is a great complement to the academic preparation we provide for our students. The student and employer feedback we receive also give us information to assess and continuously improve our business degree programs." Other benefits include an increased placement rate for graduates and the highly valued interchange of ideas and processes between the structured world of academia and the rapidly changing workplaces in today's industries and offices.

Student benefits are also easy to determine. As they begin an internship, most students would identify such benefits as the ability to receive academic credit while earning money to pay for their education, the opportunity to "test drive" their chosen profession, the importance of practical experience, or increased opportunities to obtain employment after graduation. For many students, undertaking an internship as their first employment enables them to move from a stand-alone student status into a world requiring teamwork and mutual responsibility for success. Students often cite stronger confidence in their abilities as the result of such endeavors.

From an employer's perspective, the benefits are as diverse as the types of business organizations offering internships. Barry Davis, a partner in the Kansas City office of the accounting firm BKD LLP, states "A strong internship program allows us to leverage our full-time employees with students who are highly motivated to learn about the public accounting profession. From a recruiting perspective, internships allow both parties (the students and the company) to evaluate each other in the normal context of the day to day operations and to determine if a good fit exists for full-time employment." Training costs are generally minimal as interns come to the businesses with current knowledge of the latest concepts and processes, along with the ability to effectively use the most recently released computer software. Many employers are quick to point out that interns are viewed as vital assets, providing them with the ability to tackle problems and projects that would be impossible with their current level of staffing.

Wayne Jones, director of communications for Factory Direct Appliance, said one of the benefits of an internship is that students can get input from experienced managers and co-workers. "And the organization they work for has an opportunity to evaluate their potential in a real-world environment. At least four Central graduates have been hired by that company following their internships. Each academic institution develops its intern-ship program with the unique characteristics of its academic programs and the needs of its employers in mind. In bull and bear markets, the needs and benefits of business internships exist--so should the opportunities.

Harry Poynter, is the Director of the Center for Business Internships, Central Missouri State University. He can be reached by e-mail at hpoynter@cmsu1.cmsu.edu or by phone at 660.543.4632.