In today's competitive job market, companies are constantly looking for new ways to find and develop tech talent. Many turn to internships as a way to identify promising candidates, providing them with work experience for a short period then hopefully recruiting them after they finish their degree.
While internships can be an effective tool for technical talent recruitment, relying solely on them limits a company's talent pool, is concerning from a diversity and equity point of view, maintains high recruitment costs, and puts a company at greater risk for high turnover. This is particularly true for companies that only offer internships.
On the other hand, software or tech apprenticeships offer a more comprehensive approach to talent development and can help companies find and develop talent from a broader range of backgrounds.
Many people in engineering leadership or HR haven't been exposed to key data points about technical talent training to truly understand the implications of only running internships. Below, we share key insights related to internships and highlight some of the benefits of implementing apprenticeship programs to improve a company's talent pool, ROI, and turnover.
1. Tech Internships Require Applicants to Be in a Degree Program... But Minority Populations are the Ones Who Can Least Afford a Degree
Software internships largely require applicants to be in a degree program, and recruiters will not accept applications from people who are not in a degree program. This means that being in a degree itself is a filtration mechanism, which is a derivative of income, not capability.
The average income by race is nowhere near equal in America. Here's a breakdown from the Census Bureau:
This means that the populations who can least afford a Computer Science degree are Black, American Indian, Alaska Native, and Hispanic because the average cost of a CS degree is $40K (statista.)
Money is the root cause of this issue, as many people simply cannot afford to pay for the high costs associated with college. The rising cost of tuition, books, housing, and other related expenses can be prohibitively expensive, particularly for those who come from lower-income households. This financial barrier to higher education can create a vicious cycle, as those who cannot afford to attend college may struggle to find high-paying jobs, perpetuating economic inequality.
So immediately, only running internships and requiring a CS degree is a choice to purposefully exclude certain populations purely because they don’t have the same income level and thus access to education as other ethnicities or races.
2. Tech Internships Can Perpetuate Social and Economic Inequalities (Despite Intentions Otherwise)
Internship cadence and structure largely demands that interns be available for a 6- to 12-week period on a full-time basis…..which immediately excludes part-time students or students who have to work to pay their bills or support their families. This has tremendous implications for who truly has access to internships, even paid internships, as most Americans in higher education learn part-time, not full-time. Those who study full-time have the money to forego an income for years at a time - again, the data indicates this is not a minority population.
Further, some internships are unpaid, which means that they are only accessible to individuals who can afford to work for free. This favors individuals from wealthy or wealthier families and those with strong social networks, while excluding individuals from lower-income backgrounds or those who cannot afford to work without pay.
Both of the above result in a narrow talent pool that lacks diversity and creativity and does not reflect the broader range of backgrounds and experiences that are available in the job market. It's unlikely that companies have the intention of perpetuating inequality, but this is, however, the reality given the cost of a degree and the demands of an internship.
3. Tech Internships Require Applicants to Be in a Degree Program Which Ignores Talent Who Gain Equivalent Skills via Non-Traditional Means
Another limitation of running internships is that they often target a narrow range of candidates. Internships are offered to college students or recent graduates, which means that they exclude individuals who have pursued alternative career paths or who have work experience in different industries. The reality is that a very limited number of people have the financial resources to pursue a college education, and given the plethora of other training options today, limiting internships to university students ignores other talent pools.
Most of Americans in higher education aren't at universities or 4-year institutions: 70% of those enrolled in higher ed are at community colleges.
And that doesn't cover the majority of the American population either; it's just those who made it into the higher ed system.
So while internships can be a valuable tool for identifying and developing talent, relying solely on them undoubtedly limits a company's talent pool. Companies that are looking to develop a more diverse and comprehensive talent pool must consider implementing apprenticeship programs in addition to internships: apprenticeships are an equivalent on-ramp but that don't require a degree.
4. Tech Internship Programs Cost A Lot in Recruitment But Have Low Conversion Rates and Low Retention
Believe it or not, but most internship programs don’t have a great ROI for companies (they’re still good for society and early talent though). Internship programs are highly competitive and cost companies a huge amount to recruit annually. Some companies receive upwards of 30,000 applicants for their internships, requiring a significant outlay of resources for positions that don’t last long or convert well.
To be clear, most companies have entire departments for university recruiting, responsible for internships and early talent recruitment.
Internships also don't have great conversion rates to full-time employees - which is not necessarily the fault of employers. Many interns shop around or accept offers from other companies after they finish their degrees. Conversion rates in industry tend to be around 20%, with high rates sitting at 40%.
Those who come through internship programs and do end up as FTEs don’t necessarily stay for a long time, however. Retention isn’t great, and churn is common among younger engineers as they seek to level up their skills, salary, and titles.
This means companies are spending significant amounts of money recruiting from populations that don't stay long, don't convert well, and have low retention rates.
Good apprenticeships are widely known to have strong conversion rates, higher than average retention, and strong company loyalty.
5. Internships Are Not the Only On-Ramp Options for Early Talent...Apprenticeships Have Been Used for Decades Successfully in Other Countries
Internships are largely used as on-ramps to a company's workforce, but elsewhere in the world, apprenticeships have long been used in parallel to bring on qualified talent. Apprenticeships in software development, DevOps, embedded engineering, AI/ML, tech support, IT help desk, etc. offer a more comprehensive approach to talent recruitment. By targeting a broader range of candidates and providing specific training in the skills required for a particular job or industry, technology-related apprenticeships can help companies develop a larger skilled talent pool.
Europe has been using apprenticeships in these areas for years, even decades, very successfully too.
In fact, some apprenticeships are combined with a degree, meaning there are essentially two pathways to gaining the skills required for entry-level software jobs: one via a traditional brick-and-mortar classroom-style degree followed by an internship, and one via a learning-on-the-job hands-on degree as part of an apprenticeship. America has the first, and the second is slowly developing, but not at the speed it should given the success rates.
Good tech apprenticeships that use a learn and earn model also help significantly to widen the available talent pool and reduce inequality. Apprentices receive a partial salary for their paid training, and last much longer than internships, immediately making them more accessible to a wider range of candidates, helping to reduce inequalities in society as a whole - at no comparably greater cost to employers either compared to internships.
6. The Benefits of Tech Apprenticeships for Employers
Tech apprenticeships offer several benefits to employers looking to improve or expand their talent pool. One of the primary benefits is that they provide a more comprehensive approach to talent recruitment than internships, largely because they don't require a degree but focus instead on skills.
Tech apprenticeships offer specific training in the skills required for a particular job or industry, meaning companies get talent that would otherwise be overlooked but that has largely the exact skillset they want for early technical talent. This means that tech apprentices are able to hit the ground running and start contributing to the company from day one - this can't necessarily be said of all interns, especially in software engineering or DevOps. Additionally, tech apprenticeships provide companies with the opportunity to identify and recruit promising candidates who may not have considered a career in their industry.
Another benefit of tech apprenticeships is that they offer employers the opportunity to tailor training to their specific needs. This means that companies can ensure that apprentices receive the specific skills and knowledge required for their particular job or industry. This can help to reduce mismatches between the skills that a company needs and the skills that employees possess, which can be a costly and time-consuming problem to solve.
Apprenticeships often offer cost savings to employers. While there may be some initial costs associated with setting up a tech apprenticeships program, such as training and development costs, these are often offset by the very small amount spent on recruitment, the higher retention rates, and the higher conversion rates compared to internship programs.
Tech apprenticeships offer employers a comprehensive and cost-effective approach to talent recruitment. By providing specific training tailored to the company's needs, tech apprenticeships can help companies develop a diverse and skilled talent pool, reduce mismatches between skills and job requirements, and provide a clear career path for apprentices.
7. How Apprenticeships Can Improve Your Talent Pool
Tech apprenticeships offer several advantages over traditional internships in terms of improving a company's talent pool. One of the primary advantages is that they offer a more diverse and inclusive pool of candidates. Tech apprenticeships are not restricted to recent graduates or college students and therefore attract candidates from a wider range of backgrounds and experiences. This can help to create a more diverse and inclusive workplace, which has been shown to increase creativity, innovation, and productivity.
Another advantage of tech apprenticeships is that they offer a more effective way of developing the skills and knowledge required for a particular job or industry. Tech apprenticeships offer specific training that is tailored to the needs of the company, which means that apprentices receive training in the skills and knowledge that are directly relevant to their role. The same cannot be said of most Computer Science degrees.
In addition, tech apprenticeships often offer a more hands-on approach to learning, which can lead to more practical experience and skills development. Tech apprenticeships provide on-the-job training, which means that apprentices can learn by doing, and have essentially practiced the job before they start as an apprentice on an engineering team. This can help to build confidence and accelerate learning, which can be beneficial for both the apprentice and the company.
Apprenticeships also offer a clear career path for apprentices, which can help to retain talent and reduce recruitment costs. By providing a structured training program and a clear progression route, apprenticeships can help to motivate apprentices while involving more senior employees, giving both a sense of purpose and direction relevant to the company's needs.
All of these benefits can help to create a more skilled, diverse, and motivated workforce that is better equipped to drive the company's success.
8. Shift the Focus and Budget to Both Tech Internships AND Tech Apprenticeships
In today's competitive job market, employers must focus on building a strong talent pipeline to secure the success and sustainability of their businesses. One effective strategy is to shift the focus and resources from internships to both internships AND apprenticeships. Internships have been a popular way for employers to attract young talent, but they're expensive, resource-heavy, don't have great conversion rates, and how lower retention, in addition to coming with a whole suite of equity and accessibility issues.
Apprenticeships are also not bound by time: internships are restricted to the academic calendar; apprenticeships are not. In a market where 'just in time recruitment' isn't functioning as it used to, it's time for companies to reconsider how they get and develop a talent pipeline.
It is essential for companies to re-evaluate their budget and invest in building a strong tech apprenticeship program to develop a talent pipeline that aligns with their business goals. Building a tech apprenticeship program from scratch, however, can be time-consuming and resource-intensive, which is why it's important to work with a provider to develop a program that fits your company's specific needs. By partnering with a provider, companies can take advantage of their expertise and experience to create a comprehensive and effective apprenticeship program, as well as in some cases become eligible for grant funding for apprenticeships.
Companies should consider reallocating their budget from internships to apprenticeships to build a more reliable, equitable, and larger talent pipeline at a time when competition for technical talent is high and not improving any time in the next decade.
Are You Hiring Who You Should, and Not Hiring Who You Should Not If You Only Run Internships?
Ultimately, the goal of recruitment is to find great if not the best talent for your company. Internships have long been seen as a way to 'discover' early talent with a view of recruiting fo a full-time position.
The question, though, is: of the entire skilled talent pool available, are you hiring who you should and not hiring who you shouldn't? If you only run internships, you immediately ignore a large and significant talent pool who are skilled and have the competencies you're looking for, and thus very likely contain people you should be hiring. But degree limitations and a lack of other on-ramps mean you'll never see this talent. That's where apprenticeships can fill the gap and even help you identify who you shouldn't be hiring.
While internships may still have a place in talent development, it is important for companies to consider the limitations of internships and explore the benefits of tech apprenticeships. By doing so, companies can improve their talent pool, develop a more skilled workforce, and ultimately achieve greater success.
