How-To-Guide: Establishing Your Company’s Internship Program ® Industrial Distribution’s Recruitment Program Helping your company reach, engage, prepare and connect with tomorrow’s industrial distribution workforce. Alliance Partners FOUNDATION Building the Industrial Careers PathwaySM As of June 2014 his guide is meant to be a starting point for those interested in establishing an internship program in their organization. You may ask yourself, “Why should I establish an internship in my company? How will I benefit from doing this?” Establishing an internship in your organization will help you develop possible future job candidates, raise your company’s profile in your community and among job seekers and you’ll become a vital link in ICP’s mission to secure a skilled industrial distribution workforce for today and tomorrow. What Is an Internship? How Long Do Internships Last? Basically, an internship is a formal program that provides practical experience to students in a specific occupation or profession where they can learn more about what is involved in that occupation through experiencing it firsthand in an organization. Internships provide a benefit to both the intern and the company hiring the intern. Internships have a specified beginning and end date agreed upon by both the intern and the employer. Internships usually correspond with the educational institution’s (high school, community/vocational college or university) quarter or semester system. Internships will often require a foundation of learning in order for students to be able to perform credit-specific tasks or functions, so interns are typically further along in their studies. Internships last for a specific period of time agreed to by both the employer and the intern. Internships may lead to permanent full-time employment, but do not have to. They offer the ability to develop work experience while still in school. Internships may be paid or unpaid: however, unpaid internships are fading out. Internships provide a workplace-based educational experience for the student. In most cases, internships are Internships offered through an educational should institution – community/technical/ benefit both vocational college, university, jobthe company training program or high school and the and provide a way to earn course intern. credit while developing work experience. Internships provide a way for students to “try on the profession” and determine how well it “fits.” > An internship is a learning experience and, in many cases, an intern may earn course credit for the time they spend in your organization. You will need to provide opportunities for the student to develop skills such as preparing a budget, making a sales call, doing a presentation, using a specific piece of equipment, etc. The learning experiences should be agreed upon ahead of time by the educational institution, the intern and your organization. Internships can be full-or part-time for the length of the internship. Interns can work a certain number of hours each day or come in only on specific days. All this needs to be determined and specified before the intern starts. Do I Need to Be a Large Company to Hire an Intern? Companies of all sizes can benefit from having an intern. Small companies can perhaps benefit more than larger organizations since interns bring the energy of youth and knowledge of current technology as well as new ideas that may not be present in current employees. Interns are a great way to bring in a potential new hire to see how they fit in the organization. What Do Students Want from an Internship? A recent study conducted in early 2014 by Millennial Branding (http://millennialbranding.com) and Internships. com found the three things high school students want from an internship are: • D evelop new skills experience M entoring/networking • W ork Internships should benefit both the company and the intern. • ICP Internship How-to | 2 For college students, the top three are: • W ork experience new skills J ob offers • D evelop • Additionally, internships provide opportunities to gain a realistic view of industrial distribution, how the workplace functions and the operations of a particular organization. If you are serious about establishing an internship at your company, make sure you let students know that your internship will provide these types of opportunities. Then build in opportunities to develop new skills. Make sure you provide them with a mentor. You should also let them know that the internship could lead to full-time employment, although not a guarantee. Do I Need to Pay an Intern? There has been some debate over whether or not an intern is an employee. This has been found to be dependent on the specific circumstances “surrounding their activities” on the premises of the employer. A U.S. government publication is available and provides general information on whether an intern must be paid under the Fair Labor Standards Act. It is Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act and is available at. It can be found at the end of this guide. Many provinces in Canada are putting together guidelines for whether or not an intern must be paid. These guidelines/regulations differ by province. There does not appear to be a government document that covers all of Canada and it is suggested that Canadians visit their provincial website to obtain current information. The U.S. Guide offers a “Six Prong Test” to determine whether or not an employment relationship exists. If ALL of the following six criteria are met, it is possible that the intern would not have to be paid. These have been taken directly from the Fact Sheet. 1. T he internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; 2. T he internship experience is for the benefit of the intern; 3. T he intern does not displace regular employees, but works under close supervision of existing staff; 4. T he employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion, its operations may actually be impeded; 5. T he intern is not necessarily entitled to a job at the conclusion of the internship; and 3 | ICP Internship How-to 6. T he employer and the intern understand that the intern is not entitled to wages for the time spent in the internship. recommended that you consult < Itwithis highly your attorney regarding whether or not you need to pay your intern. Laws vary by state and province and you should consult with your attorney to determine if your state or province requires interns be paid. Why Should I Start an Internship Program? There are many reasons your company might want to start an internship program, but perhaps the most compelling is to start building a pool of potential job candidates for open positions as they become available. Additionally: • Y ou will get to know these young people and see how they work. • Y ou will eliminate much of the learning curve if you decide to hire them as full time employees since these candidates have already been trained. • Y ou will know ahead of time if they are good workers or a good fit in your organization since they already know your company. • I f they have a good experience, even if they don’t become a full-time employee, they can provide you with names of other possible candidates. • Y ou will support your community by providing learning opportunities for students. • Y ou will develop a relationship with a college, community college or training program that builds your organization’s visibility among potential job candidates. • Y our involvement will bring you names of potential job candidates that your competition won’t get. • Y ou will have insight into the Millennial generation and their attitudes, skills, etc.by seeing how they function in the workplace. • Y ou can shape attitudes about industrial distribution and industrial careers. Interns will see firsthand that the environment is not a dirty grimy place to work. • Y ou can provide supervisory experience to current employees you would like to observe by assigning them to train your intern. • P roviding new responsibilities to current employees gives them new experiences and makes them more valuable employees. • Y ou can have an addition to your team that works on a project, produces a report, prepares an analysis, preps for a sales call, etc. Where Do I Find Potential Interns? Finding the right academic partner makes a great difference. The best place to look is at a community/ vocational/technical college in your area. You can search using community/vocational/technical college and your location to find these types of educational facilities in your area. There are also specific websites you can search including: www.trade-schools.net; www. tradeschooladvisor.com and the white pages for your area. On the school’s website see where “job placement” or “internship program” falls in the organization. It may be under student services, career center, placement, guidance, counseling or “other services.” Get the name and contact information for the head of the department and make an appointment to see them. You should feel as if the school is supportive, helpful, engaged and interested in working with you to make a good match. A school with little experience in applied technology may not have a good understanding of industrial careers and industrial distribution. They may also not have many students likely to be interested in an internship with a distributor. On the other hand, a good partner school can help you develop a good student plan, understand issues of college credit and align learning objectives with activities. The best way to make sure you have a good base for potential interns is to develop a relationship with someone at your local high school or community/technical/ vocational college or job training program. It might be a department head, specific course instructor or someone in the placement office. Explain the kind of soft skills – good listener, problem solver, team player – and any technical skills such as “likes to know how things work or fix things” etc. – that you are looking for in a candidate and ask them to let you know when they come across someone who might be a good fit. You can offer to speak to their class on the field of industrial distribution or provide a tour of your facility in return. Although the educational institutions you are working with may have posting requirements, it is a rule of thumb that posting a position early will increase your chances of getting the best candidates. There are online posting opportunities that may attract students from anywhere (www.internships.com), not just from specific schools, but you should be sure to post the internship at the colleges, community colleges and technical colleges in your area that have applied technology programs. In addition, some schools will have internship fairs, often in conjunction with job fairs. In addition to working with the appropriate personnel at the educational facility, you can also place ads on bulletin boards at schools and local retail establishments or pass out flyers at career or job fairs. You can also ask your current employees if they know of anyone that might be interested. And, once you’ve had an intern on board, you can always contact them for referrals. ICP Internship How-to | 4 Make sure to include the basics on your posting: • C ompany name, address, contact person with email AND how to apply (phone, in-person, online, etc.) • B rief background on your company and what you do • W hat the intern will be doing (placing orders, researching products, executing a marketing campaign, etc.) • W hat are the hours, pay, dress code • W hat are the requirements – do they need to be enrolled in a specific course; do they have to know a specific computer application; do they have to be able to work on their own, etc. Put the same kind of information in your posting for an intern as you would for any job opening you have. People want to know what they will be doing, what skills they need and something about you as an employer. What Makes a Successful Internship Program? Management buy-in is crucial. Without support from management and supervisors, an intern program will not be successful. If the leaders in a company don’t accept the investment of time and energy necessary to fully involve interns in a meaningful way, interns can be perceived as a burden or kept on the sidelines without meaningful projects. what they need to do better. They can’t wait until the end of the internship to find out they have not been meeting your expectations. Make sure their supervisor schedules feedback sessions throughout the term of the internship. Remember that in many cases this internship will be the first real job your intern has had. Make sure you provide your intern with a good Employee Orientation. In many cases the intern won’t have a good knowledge of exactly what is involved in the workplace. They may need to have specifics reviewed such as: • Being late is not okay. • I f you are going to be late then you need to call your supervisor. • Y ou are expected to keep company information confidential. • T he appropriate dress code for the office does not include flip-flops. They may need help understanding the reporting structure and how the parts of the organization work together. Although you may have them sign that they have read the organization “rules,” you might want to have a face-toface meeting to make sure they “get it.” Be clear about what your requirements are. Interns can range from high school students to postgraduates. Remember your intention is to provide a meaningful workplace-based educational opportunity. An internship appropriate for a high school student will be very different from one of value to a college engineering student. There is someone in the organization that can serve as a mentor or coach. If there is no one in your organization who is willing to take the time to mentor or coach your intern, the chances of the program being a success greatly decrease. Your intern needs someone they can ask questions of, get information on the company culture, understand the politics of the organization, and learn from. The intern’s direct supervisor is not always able to fill this role. The person who fills this role must want to do so. You cannot simply pick someone and expect them to fill the role. Make sure there is a feedback mechanism in place. One thing the younger generation requires is feedback. Your intern will want to know how they are doing and 5 | ICP Internship How-to How Do I Prepare for Hiring an Intern? Your intern should be treated just like any other employee and, like any new employee, an intern will want to know in advance what he/she will be doing. You will want to make sure that you tell everyone involved who the intern is and when they will start. Some things that your intern will need include: • A brief description/profile of the company that includes company name, address, website, phone, and contact person • L ist of responsibilities including title, working hours and hours per week, skills required • O rganizational chart so they can see where things fit in with adequate lighting, computer, telephone and office supplies The intern agreement should include: • S tudent information including graduation date, title of the internship, contact information • D esk/workstation • C ompany • T heir • S chedule own computer log-on and email address for establishing voice mail, including what is an appropriate greeting information including the contact information for the direct supervisor of hours/days to be worked • I nstructions • R esponsibilities • Office • Job codes for accessing the copier, entering the building/office, parking permit, etc. • P rocedure manual for the responsibilities they have • E mployee manual with rules, regulations, expectations, dress code, etc. • I nformation • H ow of all parties – intern (student), educational facility, employer responsibilities • G oals and objectives • I f there is a final project required, a description of this should be included • D ated and signed by all parties on your company goals and objectives they will be evaluated If you would provide something to a new employee, you should provide that same item to your intern. There should be a person assigned as the intern supervisor with a plan for supervision that includes regular contact and progress assessment. There should also be informal contact and opportunities to meet with other employees. The supervisor should be given adequate time to work with the intern. The intern’s goals should be aligned with the company goals. Of course, the intern goals should follow the same rules that apply to all goals of being specific, measurable, realistic and few. In addition, remember that the intern can and should have specific educational and skill-building goals. Goals laid out for the intern should include both the goals that are important to the intern (e.g. prepare a sales call training manual) and to the company (e.g. assist in warehouse reconfiguration). A basic format for an internship goal could be: Don’t assume that, after a few days or weeks, the intern can work on his or her own. Structure regular (at least weekly) contact to monitor progress, continue to educate, troubleshoot and see if assignments need to be modified. Connect the intern with other employees, answer questions, get feedback and ideas from the intern and assure that the intern is feeling he/she is benefiting from the experience. The Millennial generation is known for wanting lots of interaction, liking teamwork and looking for gold stars and pats on the back. • S pecific goal – Prepare a sales call training manual. In many cases, the agreement you have with the educational institution the intern attends will require specific learning experiences for the intern to receive course credit for the internship. These items will need to evaluated and feedback provided to both the intern and the instructor. These should be worked out ahead of time with the instructor and become part of the intern agreement. • E valuation • T asks to accomplish the goal (how the goal will be achieved). –D etermine the key pieces of information needed when calling on a prospect –D evelop questions to ask the customer that will determine customer needs –T alk with company sales reps and find out what they think makes them successful method (how it will be determined if the goal has been met). • D eadline for goal completion. Many internships have failed because goals were not clear and understood by everyone < CAUTION: involved including the intern, the school, the company leaders, supervisors and employees who will be working with the intern. Make sure the goals you set are simply stated and clear. What Are Some Things We Should Consider? • D o an Internship Program Assessment: Fill out the Internship Program Assessment Form on pages 8-10 to make sure you cover everything and to determine if your company is ready to start an internship program. • K eep focus: It is easy to allow your intern to become a “gopher” called on to do copying, run errands or set up a meeting room. Stick to the responsibilities in the job description as much as possible so that both your organization and your intern find the experience educational and valuable. • Provide context for the intern: Sometimes it is hard for the intern to see why he or she is spending hours putting together packets of materials. But if it is part of meeting a defined goal or learning objective, it makes sense. Millennials need to know how what they are doing fits into the big picture. Make sure you tell them. • A ssign a mentor to your intern: Give your intern one person they can go to with questions about the company, the job, the politics of the workplace, people issues, etc. This individual MUST want the role of mentor/coach and does not need to be the direct supervisor. Having someone to go to when the need arises could mean the difference between a great and a bad experience. • E valuate the total internship experience: Because internships do take company resources, you will want to have a company goal for your internship program that you can use in assessing the value of the program and considering how to increase company benefit for a good return on company investment. • P rovide opportunities for soft-skill development. In many cases, this will be the first real workforce experience for your intern. To help them as they move forward into the world of work, give them opportunities to talk about their assignments, give presentations to you and your team, interact directly with customers and suppliers and attend meetings. Where Can I Learn More? The ICP website is a great place to send your intern to learn about the field of industrial distribution. The section designed for the younger generation is www.idcareers. org. There they can learn about possible career paths, what OEM and MRO mean, what skill sets are needed for full-time employment in the field. ICP also has a course on the basics of the field called Elements of Industrial Distribution. It is available online or in print and has four modules that cover the field of industrial distribution including an organizational and functional overview as well as customer service and marketing and profitability. Learn more at www. industrialcareerspathway.org/elementsintro. Two websites with additional materials are: www. InternBridge.com that has many templates and employer specific information and www.internships. com which hosts many employer resources. Additionally, you can contact us at [email protected] or call 312.516.2100. We will be happy to work with you to assist you in putting together an internship program at your organization. Industrial Careers Pathway is a program of the PTDA Foundation 230 West Monroe St., Suite 1410, Chicago, IL 60606. ©2014 Power Transmission Distributors Association Foundation. Industrial Careers Pathway® is a registered trademark of the Power Transmission Distributors Association Foundation. ICP Internship How-to | 7 Internship Program Assessment The internship assessment is designed to answer the following questions in preparation for implementing an internship program at your organization: Is your organization prepared to manage an internship program? What value can an internship program bring to your organization? Answers to the following questions will provide the basis of the internship job description. 1. W ould your company benefit from the work of interns to write, research, identify business leads and provide overall organization support? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 2. W ould a formal internship program help your organization reduce staffing costs, including part-time and temporary employee needs? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 3. W ould having interns benefit current staff members by providing managerial and supervisory experience? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 4. D o you have the support of senior management? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 5. What are the goals of your organization’s internship program? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 8 | ICP Internship How-to Internship Program Assessment (cont.) 6. What type of project work (research, writing, marketing support, sales support, etc.) needs to be completed? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 7. Are specific skills required for the project work? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 8. Is there a preference for the intern’s area of study? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 9. Can your organization offer opportunities for unique industry experiences during the internship? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 10. What type of student are you willing to host? q College q High School q College or High School __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 11. What type of work environment can you offer to an intern? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ ICP Internship How-to | 9 Internship Program Assessment (cont.) 12. Do you have a mentor committed to supervise an intern? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 13. Is this a paid or unpaid internship? If unpaid, are there alternative forms of compensation that could be offered? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 14. What are the dates for this internship? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ 15. Is this a part-time or full-time internship opportunity? __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ This Internship Program Assessment was developed by Robert Shindell, Ph.D., Intern Bridge, Inc. and is being used with permission. For additional tools and templates, visit www.internbridge.com. 10 | ICP Internship How-to U.S. Department of Labor Wage and Hour Division (April 2010) Fact Sheet #71: Internship Programs Under The Fair Labor Standards Act This fact sheet provides general information to help determine whether interns must be paid the minimum wage and overtime under the Fair Labor Standards Act for the services that they provide to “for-profit” private sector employers. Background The Fair Labor Standards Act (FLSA) defines the term “employ” very broadly as including to “suffer or permit to work.” Covered and non-exempt individuals who are “suffered or permitted” to work must be compensated under the law for the services they perform for an employer. Internships in the “for-profit” private sector will most often be viewed as employment, unless the test described below relating to trainees is met. Interns in the “for-profit” private sector who qualify as employees rather than trainees typically must be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek. The Test For Unpaid Interns There are some circumstances under which individuals who participate in “for-profit” private sector internships or training programs may do so without compensation. The Supreme Court has held that the term "suffer or permit to work" cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction. This may apply to interns who receive training for their own educational benefit if the training meets certain criteria. The determination of whether an internship or training program meets this exclusion depends upon all of the facts and circumstances of each such program. The following six criteria must be applied when making this determination: 1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment; 2. The internship experience is for the benefit of the intern; 3. The intern does not displace regular employees, but works under close supervision of existing staff; 4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded; 5. The intern is not necessarily entitled to a job at the conclusion of the internship; and 6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship. If all of the factors listed above are met, an employment relationship does not exist under the FLSA, and the Act’s minimum wage and overtime provisions do not apply to the intern. This exclusion from the definition of employment is necessarily quite narrow because the FLSA’s definition of “employ” is very broad. Some of the most commonly discussed factors for “for-profit” private sector internship programs are considered below. FS 71 Similar To An Education Environment And The Primary Beneficiary Of The Activity In general, the more an internship program is structured around a classroom or academic experience as opposed to the employer’s actual operations, the more likely the internship will be viewed as an extension of the individual’s educational experience (this often occurs where a college or university exercises oversight over the internship program and provides educational credit). The more the internship provides the individual with skills that can be used in multiple employment settings, as opposed to skills particular to one employer’s operation, the more likely the intern would be viewed as receiving training. Under these circumstances the intern does not perform the routine work of the business on a regular and recurring basis, and the business is not dependent upon the work of the intern. On the other hand, if the interns are engaged in the operations of the employer or are performing productive work (for example, filing, performing other clerical work, or assisting customers), then the fact that they may be receiving some benefits in the form of a new skill or improved work habits will not exclude them from the FLSA’s minimum wage and overtime requirements because the employer benefits from the interns’ work. Displacement And Supervision Issues If an employer uses interns as substitutes for regular workers or to augment its existing workforce during specific time periods, these interns should be paid at least the minimum wage and overtime compensation for hours worked over forty in a workweek. If the employer would have hired additional employees or required existing staff to work additional hours had the interns not performed the work, then the interns will be viewed as employees and entitled compensation under the FLSA. Conversely, if the employer is providing job shadowing opportunities that allow an intern to learn certain functions under the close and constant supervision of regular employees, but the intern performs no or minimal work, the activity is more likely to be viewed as a bona fide education experience. On the other hand, if the intern receives the same level of supervision as the employer’s regular workforce, this would suggest an employment relationship, rather than training. Job Entitlement The internship should be of a fixed duration, established prior to the outset of the internship. Further, unpaid internships generally should not be used by the employer as a trial period for individuals seeking employment at the conclusion of the internship period. If an intern is placed with the employer for a trial period with the expectation that he or she will then be hired on a permanent basis, that individual generally would be considered an employee under the FLSA. Where to Obtain Additional Information This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. For additional information, visit our Wage and Hour Division Website: http://www.wagehour.dol.gov and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-8664USWAGE (1-866-487-9243). U.S. Department of Labor Frances Perkins Building 200 Constitution Avenue, NW Washington, DC 20210 1-866-4-USWAGE TTY: 1-866-487-9243 Contact Us The FLSA makes a special exception under certain circumstances for individuals who volunteer to perform services for a state or local government agency and for individuals who volunteer for humanitarian purposes for private non-profit food banks. WHD also recognizes an exception for individuals who volunteer their time, freely and without anticipation of compensation for religious, charitable, civic, or humanitarian purposes to non-profit organizations. Unpaid internships in the public sector and for non-profit charitable organizations, where the intern volunteers without expectation of compensation, are generally permissible. WHD is reviewing the need for additional guidance on internships in the public and non-profit sectors.
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