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MAY 2016EXECUTIVE SUMMARYINTERNSHIPAND CO-OPSURVEYNATIONAL ASSOCIATION OF COLLEGES AND EMPLOYERS62 Highland Avenue Bethlehem, PA 18017-9085 610.868.1421www.naceweb.org

ABOUT THE SURVEYABOUT THE SURVEYThe 2016 Internship & Co-op Survey Report explores keyaspects of employers’ internship and co-op programs,including how programs are structured, hiring projections,conversion, retention, recruiting strategies, and compensation(wages and benefits). This also includes longitudinal analysesof these data.Data were collected from November 9, 2015, to February17, 2016, from NACE employer members; there were271 respondents, representing 26.9 percent of all eligiblerespondents. Those employers that chose to be listed assurvey respondents appear in the Appendix at the end of thisreport.A few notes regarding the data presented in this report:} Within the figures, empty fields indicate no data werecollected for that item in that year.Respondents were provided with the following definitions ofan internship and a co-op:}I nternships are typically one-time work or serviceexperiences related to the student’s major or career goal.The internship plan generally involves students working inprofessional settings under the supervision and monitoringof practicing professionals. Internships can be paid orunpaid and the student may or may not receive academiccredit for performing the internship.} ooperative education programs, or co-ops, provideCstudents with multiple periods of work in which the workis related to the student’s major or career goal. Thetypical program plan is for students to alternate terms offull-time classroom study with terms of full-time, disciplinerelated employment. Since program participation involvesmultiple work terms, the typical participant will work threeor four work terms, thus gaining a year or more of careerrelated work experience before graduation. Virtually allco-op positions are paid and the vast majority involvesome form of academic credit.} For each question, overall figures are calculated based onthe number of respondents answering that question.} Survey items that yielded a particularly low response rateshould be considered with caution.} The sum of displayed percentage breakdowns may notequal 100 due to rounding or, in cases where the sumsubstantially exceeds 100, because respondents werepermitted to provide multiple responses.NACE RESEARCH STAFFEdwin W. Koc, Director of Research, Public Policy, and Legislative AffairsAndrea J. Koncz, Research ManagerKenneth C. Tsang, Research AssociateLouisa Eismann, Research AssociateAnna Longenberger, Research Assistant Copyright May 2016 by the National Association of Colleges and Employers2 2016 Internship & Co-op Survey Report National Association of Colleges and Employers

EXECUTIVE SUMMARYEXECUTIVE SUMMARYHIRING PROJECTIONS} Responding employers expect to hire nearly 5 percentfewer interns for 2016 than they did in 2015.} Co-op hiring is down even further for 2016: Employersanticipate a drop of nearly 10 percent compared to2015.RECRUITING INTERNS AND CO-OPS} Overall, employers begin recruiting interns eight monthsbefore their start date; for co-ops, this window is sixmonths.} Interns were most widely sourced from open applications,while employers tended to rely more on career centercontacts to source co-ops.} The most widely used and most important criteria usedby employers to choose schools at which to recruit internsand co-ops included the 1) majors offered, 2) recruitingexperience, 3) perceived quality of programs, and 4) aschool’s geographic location.} Employers continue to favor “high-touch” techniques torecruit interns and co-ops, including career fairs and oncampus recruiting.} When selecting candidates for their internship and coop programs, employers look at the applicant’s field ofstudy; a high GPA and leadership experience are alsosignificant factors.} In terms of competencies they seek in their interns andco-ops, employers weigh ability to work in a team mostheavily.OUTCOMES OF INTERNSHIP ANDCO-OP PROGRAMS} Among responding employers, converting students whohave taken part in an internship or co-op program intofull-time employees is a primary goal for most programs.} Currently, the average offer rate to interns is 72.7 percent,the highest it has been since the peak of the pre-recessionmarket. The current average acceptance rate is 85.2percent, which is above pre-recession levels. The overallconversion rate is 61.9 percent—that is a 13-year high.} For co-ops, offer, acceptance, and conversion rates havedeclined over the past three years; this may be due, atleast in part, to downturns in the manufacturing sector,which drives a good portion of co-op hiring.} Historically, full-time, entry-level hires converted from anemployer’s own internship or co-op program are morelikely to persist with the employing organization than theircounterparts who have no experience or who gained itthrough another organization’s program. However, resultsamong current respondents don’t match this pattern.} At the one-year mark, hires that served an internship withthe organization outpace their inexperienced counterparts(78.5 percent versus 67.5 percent), but hires who internedelsewhere do not (64.6 percent).} At the five-year mark, hires with no intern/co-opexperience (64.2 percent) are more likely to persistthan those who performed an internship either with thecompany (54.9 percent) or at another organization (46.3percent).} The retention results for co-ops are even quirkier: At boththe one- and five-year marks, those with no internship orco-op experience are more likely to be on the job thanhires who did a co-op with the organization or elsewhere.National Association of Colleges and Employers 2016 Internship & Co-op Survey Report 3

EXECUTIVE SUMMARYPROGRAM SPECIFICSCOMPENSATION} In the early 2010s, there was movement toward makinginternship programs—and co-ops, to a lesser extent—rotational in nature. However, that interest has waned.} Overall, the average hourly wage to interns at thebachelor’s degree level have remained virtuallyunchanged over the past seven years, and currentlystands at 17.69. In fact, when adjusted for inflation,current interns actually make less than their 2010counterparts.} Typically, individual managers determine where internsand co-ops are assigned in the organization. Overall,slightly more than 15 percent of respondents reported thatuniversity relations and recruiting makes the assignments.} The composition of work duties for interns and co-ops hasremained mostly unchanged over the last several years.According to responding employers, analytical/problemsolving tasks continue to be the main focus, followed byproject management and communications.} The average hourly rate for co-ops currently stands at 16.97; again, when adjusted for inflation, current co-opsearn less than 2010 co-ops.} Dental and medical insurance are more widely offered tointerns and co-ops in recent years.GET THE FULL REPORTFor more information, seewww.naceweb.org/surveys/internship-co-op.aspx4 2016 Internship & Co-op Survey Report National Association of Colleges and Employers

APPENDIXSURVEY RESPONDENTSA total of 271 organizations took part in the survey on which this guide is based; however, only 210 agreed to be listed.84.51 California State AuditorEntergy Services, Inc.ABB Inc.Cambridge Associates LLCEpsilonAbbott LaboratoriesCameronEquinixAbbVieCardinal HealthEthosEnergyADPCarpenter Technology CorporationExcella ConsultingAeroVironmentCDM SmithExel Supply ChainAetna Inc.CenturyLinkExxonMobil CorporationAir Liquide USA LLCCerner CorporationFifth Third BankAir Products & Chemicals Inc.CGI FederalFluor Corporation - Global RecruitingAlcatel-LucentCH2M HILLFreescale Semiconductor, Inc.ALCOA Inc.Charter Manufacturing Company, Inc.Garmin International Inc.Alexion Pharmaceuticals, Inc.Chevron CorporationGEICOAllstate Insurance CompanyChrysler Group LLCGeneral Dynamics C4 SystemsAmerican Axle & Manufacturing Holdings,Inc.Cisco Systems, Inc.Genworth FinancialCity & County of DenverGiant Eagle, Inc.Comcast CorporationGilead Sciences, Inc.ConAgra Foods, Inc.Goodman NetworksConocoPhillips CompanyGovig & Associates, INC - GovigUContech Engineered Solutions LLCGraybar Electric Company, Inc.Continental AGHARMANContinental Resources, IncHeico Construction Group LLCCOUNTRY FinancialHilti, Inc.Cox AutomotiveHNTB CompaniesDell, Inc.Hologic, Inc.Delta Air Lines, Inc.Honeywell International Inc.DewberryHUGHES - An Echostar CompanyDick’s Sporting GoodsHuntington National BankDirect EnergyHyland, Creator of OnBaseDiscover Financial ServicesIBM CorporationDoeren MayhewInfineraDuPontInfineum USA L.P.Ecolab Inc.International SOS Assistance Inc.Edward JonesIntuit Inc.Edwards LifesciencesJ. G. Boswell CompanyEmerson Climate TechnologiesKabamAmerican Bureau of ShippingAmica Mutual Insurance CompanyAnadarko Petroleum CorporationARAMARKArcelorMittal USAArcher Daniels Midland CompanyArthur J. Gallagher & Co.Ascend Performance MaterialsAsurion CorporationBaker Tilly Virchow KrauseBBVA CompassBechtel Bettis, Inc.Bergen’s Promise, Inc.BP AmericaBrasfield & Gorrie, LLCBreitBurn EnergyBriggs & Stratton CorporationBurlington StoresBurns & McDonnell Engineering Co. Inc.C&S Wholesale Grocers, Inc.California ISONational Association of Colleges and Employers 2016 Internship & Co-op Survey Report 5

APPENDIXSURVEY RESPONDENTSA total of 271 organizations took part in the survey on which this guide is based; however, only 210 agreed to be listed.Kaiser PermanentePlastic OmniumSWIFTKBR, Inc.Plexus Corp.Synchrony FinancialkCuraPolaris Industries, Inc.TD AmeritradeKellogg CompanyPremier Inc.TE ConnectivityKiewit Energy GroupPrincipal Financial GroupTenaris USAL-3 Mission IntegrationProcter & Gamble Co.Teradata CorporationLake Shore Cryotronics, Inc.Protiviti Inc.Texas Instruments IncorporatedLand O’Lakes Inc.QAD Inc.Texas Parks & Wildlife DepartmentLennox International Inc.Quicken LoansThe Field MuseumLiberty Mutual Insurance CompanyQVC Inc.The Lubrizol CorporationLincoln Financial GroupRackspace, US Inc.The MITRE CorporationLindeRareThe Northern Trust CompanyLord CorporationRaytheon CompanyThe Timken CompanyLutron Electronics Co. Inc.Regeneron Pharmaceuticals, Inc.The Vanguard GroupMacy’s, Inc.Rockwell CollinsThe Walsh GroupMars, IncorporatedRosettaThe Walt Disney CompanyMAVERICK TechnologiesRoss Stores Inc.Thomson Reuters CorporationMeaden & MooreRust-OleumTIBCO Software Inc.Medical Mutual of OhioS&C Electric Co.Tindall CorporationMinnetronix Inc.Sabre CorporationTrue Partners Consulting, LLCModern Woodmen of AmericaSeagate TechnologyU.S. Comptroller of the CurrencyMoen IncorporatedSealed Air CorporationUnion Pacific Railroad CompanyMondelēz InternationalSears Holdings CorporationUnisys CorporationMusco Sports Lighting, LLCSensata TechnologiesUnited Launch AllianceNational InstrumentsShaw Industries, Inc.United WaterNestle Waters North AmericaShell Oil CompanyUnitedHealth GroupOlin Chlor Alkali ProductsSonepar USAUnumOshkosh CorporationSouthern California EdisonValero Energy CorporationOwens CorningSouthwest Airlines Co.Verso Corp.Parsons CorporationSpectra Energy Corp.ViaSat, Inc.Payless ShoeSourceSpeedway LLCWawa Inc.PepsiCoSTAPLES Inc.Westlake ChemicalPerficientSterling JewelersWilliam BlairPhillips 66Streck, Inc.WPX EnergyPhillips-Medisize CorporationSwagelok CompaniesZachry Industrial, Inc.6 2016 Internship & Co-op Survey Report National Association of Colleges and Employers

62 HIGHLAND AVENUEBETHLEHEM, PA 18017-9085610.868.1421 www.naceweb.org

The Vanguard Group The Walsh Group The Walt Disney Company Thomson Reuters Corporation TIBCO Software Inc. Tindall Corporation True Partners Consulting, LLC U.S. Comptroller of the Currency Union Pacific Railroad Company Unisys Corporation United Launch Alliance United Water UnitedHealth Group Unum Valero Energy Corporation Verso Corp. ViaSat .