Studies have shown that internships are one of the biggest indicators of whether or not a recent graduate will receive a full-time employment offer before graduation. In fact, many companies use internships as a pipeline for their next crop of entry-level recruits. However, not all internships are created equal, especially when it comes to pay. According to research from the National Association of Colleges and Employers, students that had a paid internship while in college were more likely to report higher levels of engagement in their early careers and to find a full-time job faster than students who had an unpaid internship. In short, paid internships tend to be correlated with more positive career outcomes, in addition to the short-term benefit of receiving a paycheck.
If you’re looking for an internship for this summer (or even during the school year), consider these tips to find a position that’s financially feasible for you.
There are industries that pay well and industries that don’t. In general, internships in government, nonprofit organizations, entertainment, media, and publishing are either unpaid or offer a small stipend. Many of them are also located in cities with a high cost of living, such as New York, Los Angeles, or Washington D.C., putting these opportunities out of reach for many college students.
By contrast, some of the top-paying industries include finance, consulting, and technology.
Many students believe that they can’t get an internship at a tech or financial services company if they don’t have a tech or finance background, but that’s not the case! A lot of these companies offer internships in many different fields, such as accounting, HR, marketing, or sales. Start by figuring out your target industry, and then delve into specific opportunities from there.
In addition to wide pay disparities between industries, there can be significant pay variation among different job functions at a company, too. Overall, software or technical internships tend to pay the most, as well as finance or analyst positions. But in your research you might discover subtle nuances across other departments, such as that a sales internship might pay more than a marketing internship at the same company. Realistically, fashion or journalism internships pay the least (if at all), though there are companies that pay more than others (like The Washington Post or BuzzFeed vs an under-funded local publication).
Once you narrow down your search to a few companies in an industry and job function that you want, you can get a sense of intern pay from researching on sites like Glassdoor. Glassdoor regularly publishes a list of companies that offer the best-paying internships, although this will only give the median salary without regard for location or job function. For a greater level of detail, go directly to the company’s Glassdoor profile and filter by your desired location, job title, and years of experience. You can also consult the company’s careers website to see if internship salary information is publicly available.
Your pay (and ability to save money) will vary depending on your living expenses. Even if you find an internship with an attractive salary, costs related to transportation and housing can put a dent in what you earn. Your pay might stretch further if you go for a company located in a smaller, more affordable city. Additionally, if you can live at home and work, an internship with lower pay is still something to consider. A good opportunity with a lot of great professional development could still be a good career move in comparison to relocating for the summer, especially if you’re low on funds.
Let’s say that you have your heart set on working for a company or organization – perhaps in the government or nonprofit sector – that is unable to offer a stipend or paid internship. To combat this problem, some colleges have started programs to provide funding for students who want to undertake an unpaid internship, but would not be able to afford it without financial assistance. A few colleges that currently offer this benefit include the University of Chicago, Barnard College, Brown University and Lafayette University. You can check with your college career center or your financial aid office to see what opportunities might be available for defraying expenses associated with the internship.
Experiential opportunities such as internships are critical for career growth, so starting the search process early is ideal. A lot of the recruitment for paid internships, especially summer internships in tech and finance, occur in the fall semester, but companies are recruiting for talent all year long. Stay ahead of the competition by signing up for RippleMatch, having an up-to-date LinkedIn profile, stellar resume, and cover letter tailored for the position, and by connecting with recruiters on campus, at events, and online.