Starting a business is not only about making money. For most small to medium-sized enterprise (SME) owners, starting a business is about cementing their legacy, creating generational wealth for their families and also providing employment for others in their communities. One way of not only providing employment to others but also other skills is to start an internship programme.
What is an Internship Programme?
An internship programme is a structured, temporary work experience, often lasting 8 to 12 months, designed to provide students or recent graduates with practical, hands-on training in their field of study. It acts as a bridge between academic study and professional employment, allowing interns to gain experience, skills, and networking opportunities.
Not only is an internship a great way to provide employment and skills development opportunities, but there are also tax incentives and, in some cases, B-BBEE points.
In this article, we look at what it takes to set up an internship programme and the benefits for SMEs.
Benefits of an Internship Programme
Here are some benefits of setting up an internship programme in your business.
1. Cultivate a Pool of Future Entry-Level Hires
A good internship programme will create an ongoing pipeline of entry-level hires that fit the company culture. These interns will become full-time employees who already understand the company and have been assessed as fit for your business.
2. Test-drive New Talent Without Additional Recruitment Cost
Unlike new hires who make a solid impression during the interview process, give their best, and often only show their true colours after the probation period, internships allow for a longer trial period. This allows for the identification of the prospective employee’s culture and company fit, without the cost of recruitment and higher salaries.
3. Remove Inconsistent Interns without Time and Effort or Labour Cost
Employees or new hires who are not a good fit for the company require costly, lengthy training and correction or sometimes a costly disciplinary process. Interns not complying with the company’s expectations will face sanctions, including assistance with fair and just processes with uncomplicated, cost-effective, quicker training and development, disciplinary procedures for correction or replacement.
4. Develop Leadership Skills in Current Employees
If mentoring and supervision are done by employees, it provides them with an opportunity to develop valuable leadership skills. Supervising interns is less intimidating for current employees, which means they gain confidence in their leadership skills.
5. Increase Productivity and Return on Investment (ROI)
Internship programmes with higher-level tasks can have a positive effect on profit and efficiency. Quality interns contribute to productivity, with full-time staff focusing more on the tasks that require high-level expertise or creativity.
6. Improve Overall Work Environment
With a well-structured internship programme, current employees will have a lighter workload and more time for creative, advanced or new projects. Also, interns often bring enthusiasm, motivation, alternative views to existing problems and positive energy to the company.
7. Close the Gap Between Higher Education and Employment
The skills gap between higher education and employment is made bigger by graduates lacking critical soft skills such as emotional intelligence, time management, leadership skills, and effective communication. A proper internship programme addresses these skills and can help graduates close this skills gap with proper real-world experience.
8. Tax and B-BBEE Incentives
Internships that are structured as registered learnerships (with a SETA) provide the highest tax benefits, though general paid internships also qualify for ETI. Also, salaries paid to interns are deductible as operating expenses, and companies can gain up to 11 B-BBEE points for internships and up to 25 points for learnerships under the Skills Development element.
Setting Up Your Internship Programme
The following are a set of tips to help you set up a successful internship programme that is both challenging and meaningful.
1. Establish Your Internship Programme Coordinator
A successful internship programme depends largely on the person overseeing the interns. This person serves as the main point of contact for the interns, and provides guidance, feedback and support throughout their time in the programme. Having a dedicated coordinator is crucial to ensuring the programme pushes candidates to their full potential. The coordinator needs to be at the centre of designing the programme and collaborate with managers and supervisors to ensure full effectiveness.
2. Structure the Programme for Success
It’s important to consider the needs and goals of both your company and the potential interns to create a well-structured programme. An effective programme will not only provide interns with valuable skills and knowledge but also contribute to the success of the organisation. To design a successful programme, it’s important to consider various factors such as:
- The intention of the programme
- Do you aim to fill skill gaps within your company?
- Do you want to develop and nurture talent from within?
- Is the programme just part of your corporate social investment framework?
Clarifying the purpose of the programme will help you create one that aligns with your organisation’s goals and objectives and attracts the type of talent that values your strategy.
3. Outline What the Intern Role Will Look Like
Transparency is key to attracting the best candidates for your programme. It’s essential to communicate the role and responsibilities of the position, the starting salary and the potential for growth within your company.
By providing this information upfront, potential interns can have a clear understanding of the position to work towards, which can be a strong motivator. This is also a crucial step for attracting the right talent for the internship programme.
4. Make the Programme Selective
Having an internship programme geared towards success can be great, but it also comes with its own challenges. One challenge is selecting the correct candidates for the programme. Leverage technology platforms to ensure the selection process is faster and more effective.
Although South Africa has a significant youth unemployment stat, it’s still important to be selective with the potential interns. Being selective will allow you to ensure you pick candidates who are appropriate for your company and its culture.
5. Establish Intern Goals From the Start and Compensate Interns
Clearly outlining goals at the beginning of the programme can help guide both the interns and your organisation’s expectations for the experience. Clear goals set the tone for the intern’s work, and they can easily understand what is expected of them, making it easier for them to remain focused and motivated throughout the programme.
Additionally, it’s very important to compensate interns fairly for their work. When interns feel appreciated, they are motivated to work harder, and the company benefits from their efforts. This also shows that the company values their work and is committed to its success.
6. Award Internship Certificates
An internship certificate is an official document that confirms that the intern has successfully completed their designated internship with your organisation. It’s important to award certificates to your interns because it highlights the department they worked in and verifies that they are qualified to seek higher-level positions in the industry.
To ensure authenticity, your certificates should include the following details:
- Your business’ letterhead
- Complete company address
- Company contact details
- Name of the manager/programme coordinator
- Signature of the manager/programme coordinator
7. Ask for Feedback and Stay in Touch After the Programme
When the internship is over, it’s important to ask the interns for feedback. This feedback will help you identify any opportunities for improvement of your programme and highlight how you have helped the interns. Also, it’s important to maintain a connection with the interns. Your interns could possibly move on to other opportunities, and by staying in touch, you can open doors for potential collaboration or networking opportunities.
These are just tips to help you build your internship programme. Remember, it must align with the goals of your company and also be meaningful for potential interns.
