Decide what interns will do
Design projects that teach and also produce value. An internship with no structure wastes the intern's time and yours.
Start with a list of tasks you never get to: researching competitors, organizing files, building a customer list, producing social content, testing a process or assisting on jobs. Group them into two or three projects with a clear end product.
Write a one-page internship plan with learning goals, weekly tasks, a final deliverable and a supervisor. A summer plan might have a first-week orientation, mid-point review and a final presentation.
Remember that interns need your time. Plan for several hours of supervision per week. Our guide to creating an onboarding plan can be adapted for them.
Paid or unpaid: understand the law
Under federal law, interns at for-profit employers are generally employees entitled to minimum wage unless a strict set of tests shows the intern is the primary beneficiary. Check federal and state rules.
The U.S. Department of Labor applies a "primary beneficiary" test to decide whether an intern is an employee. Factors include whether the internship is tied to formal education, provides training similar to a school setting, does not displace regular workers and gives the intern a real learning benefit. If the intern mainly benefits your business, they are likely an employee.
States may be stricter. Nonprofits and government have different rules. Because a mistake can mean back wages, ask your state labor department or an employment attorney before you offer an unpaid role.
For most small businesses, paying at least minimum wage is the safer and more attractive option. It also widens the pool of people who can afford to take the job.
Where to find interns
Career offices at colleges, community colleges and trade schools are the best sources. Local business groups and your own network help too.
Contact the career services office at nearby schools and ask how to post a role. Many have simple online job boards. Other places to look:
- Professors and department heads in your field
- Student clubs and professional chapters
- High school work-based learning programs
- Local chambers of commerce and workforce boards
- Your own customers' and employees' families
Post early. Spring semester is when many summer students decide. Use clear job descriptions that state dates, hours, pay and learning goals. See how to find the right employee for sourcing ideas.
Interview and select
Look for curiosity, reliability and communication more than polish. A short project or a practical question shows how they think.
Interns have little work history, so ask about school projects, part-time jobs and how they handle deadlines. Ask what they hope to learn and give them a real scenario to respond to.
- Hold a 20 to 30 minute interview with two or three structured questions.
- Give a small task, such as drafting an email or organizing a sample spreadsheet.
- Check one reference, such as a teacher or former supervisor.
- Confirm availability and any school credit requirements.
Follow the same fair-hiring rules you would for any employee. Review hiring mistakes to avoid.
Offer letter and paperwork
Send a written offer with dates, hours, pay, supervisor and conditions. Paid interns need the same tax and eligibility paperwork as other employees.
State the start and end dates, expected hours, pay rate, who they report to, and any school credit arrangement. Our guide on how to write an internship offer letter gives a structure.
If the intern is an employee, complete Form W-4 and Form I-9 and add them to payroll. See how to fill out Form I-9 and how to do payroll. Minors may have hour and task limits under child labor rules, so check federal and state rules if you hire anyone under 18.
Have them sign a confidentiality statement if they will see sensitive information.
Supervise, give feedback and teach
Assign a mentor, meet weekly, review work quickly and explain why you do things your way. A good experience builds your reputation among students.
Set a routine: a short kickoff on Monday, a mid-week check-in and a Friday review of what was done and learned. Give specific feedback, such as "cut this report to one page and lead with the key number," rather than general comments.
Expose them to real work: sit in on a customer call, show how an invoice is created or let them shadow a technician. At the midpoint and end, ask what they would change about the program. Use their answers to improve next year.
Offer a reference letter or LinkedIn recommendation to strong performers.
Convert good interns and budget the cost
A paid internship is a low-risk way to test a future hire. Budget wages, payroll taxes and supervision time, and compare them with the value of the work produced.
Illustrative budget: an intern at $16 per hour for 400 hours costs $6,400 in wages, plus roughly 10 percent in employer payroll taxes and any workers' comp, or about $7,000. If the intern completes a customer database and marketing project worth $10,000 at outside rates, the program pays off, and you may gain a hire.
Plan conversion early: tell high performers about openings and make offers before graduation. Read how to hire employees when it is time.
If you want to grow your team but cash is tight, a line of credit or working capital can cover seasonal payroll. ROI Funder considers 500+ FICO, 6+ months in business and $20,000+ monthly revenue.
Frequently asked questions
Do I have to pay interns?
At a for-profit business, interns are generally employees unless they meet strict tests showing they are the primary beneficiary. Most small businesses should pay at least minimum wage. Check federal and state rules.
Where can I find interns?
College and trade school career offices, professors, student clubs, workforce boards and local business groups.
Do interns count as employees for payroll?
Paid interns usually do. They complete W-4 and I-9 forms and are included in payroll, with taxes withheld.
How long should an internship last?
Many run a summer or a semester. Pick a length that fits your project and the student's school schedule.