Internships are often seen as an important step for kickstarting young professionals’ careers. However, new LinkedIn data shows how internship programs also greatly benefit employers’ attraction and retention strategies as well.
The research, published by LinkedIn’s Economic Graph team, found college graduates who have completed internships are 22.9% more likely to secure full-time employment within six months post-graduation compared to their non-interning peers.
Moreover, many of those graduates end up landing an employment opportunity with the company they already interned for.
According to LinkedIn’s report, “Former interns who return to the same company where they interned tend to stay longer than entry-level talent without internship experience.”
LinkedIn analyzed data on professionals who started their entry-level roles in 2017-2019, and compared the percentage of former interns to non-former interns who would leave the company within one, two, or three years.
The retention data for entry-level hires in 2017-2019 were as follows:
- Not Former Intern:
- 28.8% leave within one year.
- 47.6% leave within two years.
- 59.4% leave within three years.
- Former Intern:
- 24.1% leave within one year.
- 42.9% leave within two years.
- 58.5% leave within three years.
According to LinkedIn, “Former interns are 20% less likely than non-former interns to leave their companies within one year, 9.9% less likely within two years, and 1.5% less likely within three years.”
The study also analyzed internship outcomes for interns who started their full-time roles in 2020 — the beginning of the COVID-19 pandemic. The difference between former and non-former interns within that data set is even more pronounced.
Entry-level hires in 2020:
- Not Former Intern
- 29.7% leave within one year.
- 50.7% leave within two years.
- 62.0% leave within 3 years.
- Former Intern
- 22.0% leave within one year.
- 44.0% leave within two years.
- 66.0% leave within three years.
Within this data set, LinkedIn states, “[f]ormer interns are 34.6% less likely than non-former interns to leave their entry-level roles within 1 year, 15.2% less likely within 2 years, and 3.2% less likely within 3 years.”
The likelihood of former interns securing employment at companies they interned with is also shown to be prevalent in high-demand sectors such as oil and gas, utilities, and government administration.
Overall, former interns demonstrate higher retention rates, which is a key aspect in reducing hiring costs and building a knowledgeable and experienced employee-base.
For the interns, these early-career experiences are invaluable in establishing professional networks and receiving mentorship opportunities — both important factors that the up-and-coming Gen Z workforce strongly consider when weighing job offers.
According to LinkedIn’s The Work Shift Newsletter, Gen Z is the most likely generation to report needing a mentor (59%) or friends (55%) at work.
The role of internships is not a one-way proposition, helping recent graduates stand on two feet in a cooling labor market, it also forms a platform for employers to increase retention rates, if they can offer practical learning and personal growth opportunities.
