The International Review of Retail, Distribution and
Consumer Research
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A 20-year evolution of internships: implications for
retail interns, employers and educators
Jessica L. Hurst & Linda K. Good
To cite this article: Jessica L. Hurst & Linda K. Good (2010) A 20-year evolution of internships:
implications for retail interns, employers and educators, The International Review of Retail,
Distribution and Consumer Research, 20:1, 175-186, DOI: 10.1080/09593960903498342
To link to this article: https://doi.org/10.1080/09593960903498342
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The International Review of Retail, Distribution and Consumer Research
Vol. 20, No. 1, February 2010, 175–186
A 20-year evolution of internships: implications for retail interns,
employers and educators
Jessica L. Hursta* and Linda K. Goodb
a
Department of Apparel, Educational Studies & Hospitality Management, Iowa State University
Ames, USA; bDepartment of Advertising, Public Relations, and Retailing, Michigan State
University, USA
(Received June 2009; final version received October 2009)
For decades, retail educators and companies have agreed that internships play a
vital role in students’ retail education. Overall, the perceived value of internships/
internship programmes and the attitude towards them have remained fairly stable
and positive. However, the role of internships, their structure and the way they
are administered have changed. After reviewing relevant literature, we identified
five dimensions as major trends/changes regarding internships or internship
programmes over the past 20 years: 1) internships: the new recruiting tool; 2)
increased endorsement of internships by retailers and educators; 3) paid vs. nonpaid internships: a legal issue?; 4) structure of internship programmes revamped;
and 5) socialization of interns: creating a bond. Each dimension is discussed in
detail and practical implications for retail interns, employers and educators are
presented.
Keywords: internships; internship programmes; retail; United States
Introduction
Collegiate internships and internship programmes in the United States have been
studied in a number of ways over many years (Cook, Parker, and Pettijohn 2004).
The practice of gaining supervised experience is not a new phenomenon; in fact,
thousands of years ago, an internship was referred to as an apprenticeship (Coco
2000). An internship is a rite of passage for many college students. The first academic
internship programme in the United States was implemented in the Accounting
Department at the University of Cincinnati in 1906 (Henry, Razzouk, and
Hoverland 1988). The majority of retail/fashion merchandising internship programmes were developed in the late 1970s (Sheldon 1986) and at that time, 55% of
the Textiles and Clothing programmes required internships and 45% offered
internships as optional experiences (Scott 1978).
Regardless of when formal retailing internships/programmes were established,
the perceived value of internships from both the employers’ and students’ point of
view is illustrated by the significant growth in student/employer involvement over the
past two decades (Butler and Stull 1990; Avis and Trice 1991; Hall et al. 1995;
Hymon-Parker 1998; Knemeyer and Murphy 2001; Brown-Welty and Patterson
2002; Wesley and Bickle 2005; Bartkus 2007). For example, only about one out of
*Corresponding author. Email: hurstj@iastate.edu
ISSN 0959-3969 print/ISSN 1466-4402 online
Ó 2010 Taylor & Francis
DOI: 10.1080/09593960903498342
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J.L. Hurst and L.K. Good
every 36 (3%) business school students completed an internship prior to graduation
in 1980, compared to three out of four (75%) in 2000 (Coco 2000). Internship
programmes have long been regarded as an important addition to undergraduate
education, and they play a fundamental role in preparing students for their future
careers. Therefore, it is imperative that institutions and retail employers continue to
evaluate the type of internship programmes they have established and the types of
interns they are cultivating.
The purpose of this article is to investigate the changing nature of internships or
internship programmes over the past 20 years. After a review of relevant literature,
we identified the following five dimensions as major trends/changes regarding
internships or internship programmes over the past two decades: 1) internships: the
new recruiting tool; 2) increased endorsement of internships by retailers and
educators; 3) paid vs. non-paid internships: a legal issue?; 4) structure of internship
programmes revamped; and 5) socialization of interns: creating a bond. We discuss
each dimension in greater detail following the literature review.
Related literature
Internships/internship programmes
As common as internships were a generation ago, their perceived importance and
value by students and employers alike has increased immensely over the past 20 years
(Coco 2000). Although internship programmes serve many purposes and have
potentially positive outcomes for corporate stakeholders, the needs and objectives of
the college interns must be satisfied for such programmes to persist. For example, in
a recent longitudinal study regarding the perceptions of interns, Cook, Parker, and
Pettijohn (2004) found that 87% of the interns felt that their internship experience
improved their general ability to get along with people in work situations.
Additionally, 78% of interns agreed that the internship experience gave them
greater confidence in finding a job upon graduation, and 57% of the interns felt that
their internship experience influenced their future career choices (that is, affirming,
changing, and so on).
As universities in the United States struggle to keep pace with employer demands
related to the changing nature of the work itself, they are continually adapting
curricula to enhance educational value (Verney, Holoviak, and Winter 2009). Since
internship programmes play a fundamental role in preparing undergraduates for
entry-level jobs, it is beneficial for institutions to be concerned with the type of intern
they are producing (Verney, Holoviak, and Winter 2009). Internships are valuable
experiences that benefit the student and employer, as well as the university.
Companies create awareness and hopefully, good will about their organization
by offering internships, and internships offer college students the opportunity to
work with professionals in their field and experience the industry at first hand. For
many companies, the most successful source of new hires comes from their intern
pool (Sessions 2006). Internships give students the opportunity to experience
personally what working for a particular company really entails.
In order to compete for an optimal post-college position, students must develop a
core of marketable skills, such as communication, time management, self-confidence,
and self-motivation; all of which are now considered requirements by the industry.
Internships help students strengthen these requisite skill sets. Moreover, internships
help students sharpen job skills and work values, focus on making wise career
The International Review of Retail, Distribution and Consumer Research
177
choices, gain direct access to job sources, and even impress potential employers, all
of which help improve future job opportunities (Mihail 2006). Knouse, Tanner, and
Harris (1999), for example, found that upon graduation, business students who
completed an internship obtained jobs more readily than students who did not. In
sum, gaining work experience through internship programmes provides a plausible
way to ease the transition from an academic life to the world of work (Collin and
Tynjalla 2003; Garavan and Murphy 2001).
Employers are also benefactors of internships (see Verney, Holoviak, and Winter
2009). Internships give companies a chance to evaluate students’ work capabilities
before they extend a potential offer for full-time employment. In addition,
internships allow both the intern and the company the opportunity to determine if
the intern possesses the qualities necessary to adapt to the firm’s culture. In essence,
employers use internship programmes as a valuable recruiting tool (Coco 2000;
Gault, Redington, and Schlager 2000). Internship programmes can also help to save
costs in the recruiting channel for employers; students who have a positive internship
experience will tell other students that their internship company is an excellent place
to work (Pianko 1996), thus, making it easier to recruit students from that university.
Overall, it costs less to hire an intern, compared to an experienced external recruit.
The average cost of hiring a college student with internship experience is almost half
the amount it costs to hire an experienced individual (Pianko 1996).
The literature undeniably suggests that retail employers and universities value
internships, and that they are a benefit to everyone involved (Sheldon 1986; Pianko
1996; Cannon and Arnold 1998; Knouse, Tanner, and Harris 1999; Gault,
Redington, and Schlager 2000; Coco 2000; Cook, Parker, and Pettijohn 2004;
Verney, Holoviak, and Winter 2009). As the literature of the 1990s indicates,
students, retail employers, and universities realize the potential benefits for
establishing and engaging in internship programmes. This recognition continues to
be a trend in more recent research, as well (Cook, Tanner, and Harris 2004). Overall,
the perceived value of internships or internship programmes and the attitude
towards them have remained fairly constant over the past 20 years. However, not
everything in regard to internships or internships programmes has remained static.
We were able to identify five trends/changes that have occurred within the realms of
internships or internship programmes over the past 20 years.
Trends/changes in internships/internship programmes over the past two decades
Internships: the new recruiting tool
Over the past two decades, companies are more frequently using internships as a
recruiting tool for new hires/job placements (Messmer 1999; Coco 2000; Gault,
Redington, and Schlager 2000). According to the 2008 Experiential Education Survey,
employers are increasingly relying on their internship programmes to find new
employees (Szadvari 2008; NACE 2008). In addition, more interns are getting offers for
full-time employment from their internship employer; in 2008, employers offered jobs to
about 70% of their interns, compared to only 57% in 2001 (NACE 2008).
Marilyn Mackes, NACE executive director, states that nearly 90% of employers who
use their [internship] programmes to hire say they are very or extremely satisfied with
their interns, and employers consistently name the internship programme as one of the
most effective tools they have for hiring new college graduates. Employers see results
with these programmes (Szadvari 2008, 2).
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J.L. Hurst and L.K. Good
For many companies, this means that their Human Resource department is spending
more time recruiting the ‘right’ intern, not just any intern; therefore, many
companies have raised the bar on hiring standards for interns (Pedersen 2007).
Additionally, since companies are reducing their campus recruiting budgets in an
economy of falling income and profits, many are limiting the number of schools from
which they recruit. Targeting a limited number of top schools can reduce the
expenses of college recruiting efforts by focusing a recruiter’s time, travel budgets,
and so on to those schools where the company has a proven success record in finding
the right talent for their company (Krasna 2008).
Increased endorsement of internships by retailers and educators
For decades, retail educators and companies have agreed that internships play a vital
role in students’ retail education (Gillespie 1960; Lazarus 1978; Swerdlow 1978;
Keith 1981; Sheldon 1986; Pianko 1996; Gault, Redington, and Schlager 2000). This
endorsement of internships by retailers and educators is reflected in the curricula of
schools offering retail-related programmes (Sheldon 1986). Some university
programmes consider internships as optional; however, a growing number of
retail-related programmes are now requiring an internship as a part of graduation
requirements (Strickler 2004). Furthermore, more companies have started to realize
the strategic business advantages gained when they align their hiring goals with the
experiential learning opportunities (Szadvari 2008). College students can be
extremely valuable contributors to the organization’s mission if the internship
programme is well-organized and executed. Interns can also bring a new, structured
approach to business that is not always seen in the more seasoned employees, and
they often possess content knowledge and technical skills that full-time employees
may not (Szadvari 2008).
Internships help prepare students for the retail industry by: 1) providing them
with opportunities to apply classroom knowledge to the world of work; 2) allowing
them to reflect on their own strengths, weaknesses, and interests; 3) familiarizing
themselves with a career-oriented setting; 4) helping them assess the workplace
environment and determine the salience of their career goals; and 5) providing the
opportunity to network in the professional arena (Paulins 2008). Therefore, since
research shows that retailers who produce satisfied interns are likely to attract loyal
entry-level employees with realistic job expectations (Good and Fairhurst 1999), it is
important for educators and retailers to work together to assist students with their
internship placement so that resulting experiences contribute positively to the
student’s career and academic development (Paulins 2008). Furthermore, when
student interns perform well, the likelihood of sustained relationships between
academic programmes and retail companies is increased (Paulins 2008). Therefore,
academic advisers, retail educators, and the company’s human resources (that is,
recruiting) staff must work together to ensure a good fit between the student intern
and the internship company/internship supervisor.
For some companies, the supervisor serves as a mentor and offers career advice
and perhaps helps the intern find/secure permanent employment (Coco 2000). The
supervisor’s role is vital to a new employee for several reasons: 1) supervisors control
the degree of structure, ambiguity, and conflict in the work itself; 2) supervisors
provide informal and formal feedback to employees regarding their performance and
work behaviour; and 3) supervisors control rewards and possible job security that
The International Review of Retail, Distribution and Consumer Research
179
may benefit interns (Krackhardt et al. 1981). Moreover, research shows that the
supervisor plays an instrumental role in an employee’s decision to remain with the
company (Babin and Boles 1996; Jamrog 2002).
Paid vs. non-paid internships: a legal issue?
In the merchandising/business-related areas of retailing, internships tend to be paid,
whereas in the apparel design area, internships continue with the trend of being
unpaid (Glock 2009). That being said, a recent challenge that many companies
(especially the smaller companies, boutiques, and so on) are now facing is the strict
standards set forth by the US Department of Labor under the Fair Labor Standards
Act (FLSA). Even though the FSLA was established in 1938, there has recently been
much debate on its applicability to interns. Interns are professionals in training, and
employers who are using them are required to adhere to the requirements and
policies stated in the FLSA (Damast 2008).
To gain a better understanding of how student interns are treated under the
FLSA, one has to realize that interns are technically considered ‘trainees’. The
Department of Labor has an extensive set of guidelines regarding ‘trainees’. Certain
types of ‘trainees’ are completely excluded from the FLSA; however, the
requirements for total exclusion are quite stringent. There is a fine line between an
intern and an unpaid employee, so for those businesses struggling to decide whether
to offer a paid or unpaid internship, they should review the following six
requirements stated in the FLSA:
(1) The training, even though it includes actual operation of the facilities of the
employer, is similar to that which would be given in vocational school.
Therefore, the more the training resembles the classroom/educational setting,
the easier it will be to consider the intern a ‘trainee’. If the internship results
in a training certificate that could be listed as a job qualification on their
curriculum vitae or on a subsequent job application, then the intern is also
considered a ‘trainee’. Furthermore, if the training/internship programme is
tailored to help interns qualify for a specific job/range of jobs for various
companies, then the interns are also considered ‘trainees’.
(2) The training is for the benefit of the trainees. Ultimately, if the internship
programme increases the ‘hireability’ of the intern, then it could easily be
argued that the benefit was for the ‘trainee’.
(3) The trainees do not displace regular employees, but work under close
observation. In many companies, interns are not given sole responsibility
for corporate projects; but rather, work in a team under supervision.
(4) The employer that provides the training derives no immediate advantage from
the activities of the trainees, and on occasion his operation may actually be
impeded. This guideline is closely aligned with number three; since the interns
are working in teams or with a supervisor/mentor, any productive work done
by the intern may not be substantive and may be secondary to the training
process.
(5) The trainees are not necessarily entitled to a job at the completion of the
training period. The courts find it important to have a written agreement
ensuring that the intern has no expectation/guarantee of employment upon
completion of the internship.
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(6) The employer and the trainees understand that the trainees are not entitled to
wages for the time spent in training. Again, the courts feel it is important that
the intern and the employer sign a written agreement (namely, a contract)
explaining that payment for hours worked is neither intended nor expected.
The US Department of Labor (2009) recommends that employers only offer
an unpaid internship programme if they can meet all six criteria listed above.
However, for unpaid internship programmes, employers evade the issue by
requiring that the student complete the internship for college credit (Damast
2008). Many companies consider college credit a form of compensation. However,
George Hlavac, chairman of the labour and employment law department at
Allentown, PA law firm Tallman, Hudders and Sorrentino, and general counsel
for NACE, states that
several Labor Dept. rulings seem to suggest that as long as the internship is a prescribed
part of the curriculum and is predominantly the benefit of the student, the mere fact that
the employer receives some benefit from the student’s services does not make the student
an employee for purposes of wage and hour law (Damast 2008, 2).
Since universities are increasingly requiring students to complete an internship
for credit, it appears as if the paid vs. unpaid phenomenon will be a continual debate.
Ultimately, if companies want to remain compliant with the FLSA, the focus of their
internship programme should be on exposing interns to real-world experiences
and mentoring, rather than the amount of work produced by the intern (Narisi
2008).
Structure of internship programmes revamped
Even though the duration/length of internship programmes has remained fairly
consistent (that is, 10 to 12 weeks during the summer/semester), the structure of
internship programmes has changed significantly. Typically, internships for larger
firms were structured with a specified amount of weeks spent in different divisions
within the company. Now, it seems as if the trend is moving away from the
rotational experience to a more team-based, project-oriented approach. While there
is still a rotational experience component, most programmes focus on a specified
project that the intern works on for the duration of the internship. Many
programmes are now structured to allow interns to quickly take on
more responsibility and gain immediate leadership exposure (Coco 2000; Szadvari
2008).
For example, Abercrombie & Fitch expect their interns to be ‘active players in
helping make one of A&F’s product categories successful for the upcoming seasons’
(Abercrombie & Fitch 2009). Target’s corporate interns work with a team that
analyses/develops company strategies and they are expected to complete a
challenging project and present results to senior leadership (Target.com 2009).
Structuring internship programmes this way allows interns more responsibility and
allows them to take ownership for the work that they accomplish during the
internship (Glock 2009). This project-focused approach tends to be popular with the
Generation Y interns because they like be a part of the decision-making process and
they seek responsibility and ownership in work that contributes to the well-being of
the company (Johns 2003).
The International Review of Retail, Distribution and Consumer Research
181
Ultimately, internship programmes in which students are given the opportunity
to initiate and complete projects and receive evaluation and feedback on the projects,
enhance the satisfaction levels of interns (Paulins 2008; Hurst and Good 2009). In
sum, internship programmes should be designed to allow students a variety of
independent, as well as collaborative work assignments in an environment where
continual work performance feedback is provided (Coco 2000).
Socialization of interns: creating a bond
Since internships occur away from the academic environment, deliberate planning
is necessary to socialize the intern formally into the company culture and world
of work, immediately. Rather than simply providing knowledge regarding a
career or serving as a source of funding for their education, the internship
experience may result in an increased awareness and understanding of how to
work with others in the real world; the internship offers a maturing experience for
any intern.
Today, it appears that companies are making a more conscious effort to socialize
interns into the company culture and to involve them more actively in the company.
For example, Macy’s encourages their interns to become involved in the company’s
community initiatives, including the popular ‘Partners in Time volunteer program’
(Macy’s 2009). Through this programme, Macy’s employees renovate schools and
homes, create holiday gifts for families in need, walk in charity fundraisers, serve in
soup kitchens, and so on. This type of community service is likely to catch the eye of
Generation Y interns because according to Martin and Tulgan (2006), this globally
aware, socially conscious, and volunteer-minded generation is likely to perform best
when their abilities are matched with challenging work that helps them reach their
full potential.
Research shows that above all, interns want to be treated like full-time employees
of the company (Pianko 1996; Coco 2000; Gault, Redington, and Schlager 2000).
Employers must remember that while interns are there to work for the organization,
they are also there to learn about a career in retailing, the company and its culture.
One of the quickest ways to create a negative ‘bond’ with an intern is to have an
unstructured, unplanned internship programme and a poor supervisor/mentor. For
an internship programme to be successful in creating a positive ‘bond’ with interns,
management must be committed to creating challenging, meaningful, relevant work
assignments for interns, while providing a supervisor/mentor who gives frequent and
constructive feedback (Coco 2000). While most companies intend to provide interns
with a significant and enjoyable experience, some will fail. The results of a recent
Intern Bridge (2007) Internship Data Report, based on responses from 6,200
students and 240 organizations, revealed that overall, companies need to do a better
job of allowing interns to follow through on tasks, increase project responsibilities
and keep them busy with meaningful work.
While proper orientation/socialization into the organization is a good start,
interns must continue to receive appropriate feedback and work performance
reviews throughout the entire internship (Cook, Parker, and Pettijohn 2004).
Successfully managed internship programmes can lower entry-level recruitment
expenses, improve retention, increase organizational efficiency and enhance the
image of the company as a favourable employer on college campuses (Szadvari
2008). Data indicates that companies are recognizing the long-term power of
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J.L. Hurst and L.K. Good
successful internships and are attempting to adjust their internship programmes to
provide optimal learning experiences.
Conclusion and practical implications
In sum, the literature consistently indicates that internships and internship programmes
yield numerous benefits for students, retailers, and universities (Cook, Parker, and
Pettijohn 2004). For students, internships provide valuable real-world work experience
and potentially enhanced employment opportunities (Knouse, Tanner, and Harris
1999; Gault, Redington, and Schlager 2000). For employers, internships are an
excellent recruiting tool, a source of current information and knowledgeable workers,
and a way to ‘preview’ the skill sets of potential future employees. For universities,
internships are a powerful vehicle for marketing/recruiting prospective students and
partnering with companies (Verney, Holoviak, and Winter 2009).
Even though the quality of the internship experience tends to be the top priority
for many interns (Intern Bridge 2008), the issue of paid versus unpaid still remains.
According to Sally Cardenas, director of the Office of Internships and CommunityBased Learning at Whittier College and Michael True, director of the Internship
Center at Messiah College in Grantham, PA (Anonymous 2005), cash seems to be an
incentive for the interns to do a better job. Furthermore, True said ‘students are
committed to that project, paid or not. But, if they’re paid, they have an
accountability to that job’ (Ryan 2007). Julie Cunningham, president of the
Cunningham Group (Naperville, IL) and consultant on internship programmes is in
favour of paying interns, for the following reasons:
(1) In order to stay competitive, you must pay for top talent;
(2) paid internships help you draw a broader pool of potential candidates; and
(3) it is easier to set expectations and demand progress/performance when you
are paying for the work (Anonymous 2005).
Ultimately, if companies want to attract and recruit top talent, they should be
willing to pay for it. According to True, ‘If a student sees two internships that are
basically the same, yet one is paid and one is not, it’s no secret that they’ll go for the
paid one’ (Ryan 2007). However, in industries that typically have unpaid internships
(that is, companies that are not for profit, design, advertising, entertainment), there
are so many students competing for a limited number of positions, that they do not
need to offer pay as an incentive. In these fields, interns are more motivated by the
opportunity to be noticed and/or stand out amongst their peers in an effort to be
more competitive in the job market. In regard to unpaid internships, Cardenas says
‘If it’s a good experience and it’s unpaid, it will still come back with good word of
mouth. The top thing is that the student is treated as a young professional and not as
an unpaid slave’ (Anonymous 2005). The decision to pay or not pay student interns
continues to vary by industry and/or organization; however, having a paid
internship programme can assist the company in its mission of hiring the best
candidates (Geisel 2004).
Furthermore, in the current uneven economic times, internships are becoming
increasingly valuable, whether they are paid or unpaid. Since successful internship
programmes depend on the competency and motivation of all parties involved, the
following implications and recommendations should be considered:
The International Review of Retail, Distribution and Consumer Research
183
Implications for interns
In order to compete for an optimal post-college position, students must develop a
core of marketable skills, such as communication, time management, self-confidence,
and self-motivation; all of which are now considered requirements by the industry.
Internships help students strengthen these core skills (Mihail 2006). Internships not
only help students refine their technical competencies and improve their analytical/
problem-solving skills, they also promote an awareness of the need for adaptability
in a changing world (Coco 2000). Furthermore, gaining work experience through
internships provides a plausible way to ease the transition from the world of
academics to the world of work (Garavan and Murphy 2001; Collin and Tynjalla
2003).
Implications for universities
In today’s highly competitive job market, a diploma from a top institution is no
longer a guarantee for a job (King 1997). Employers are seeking seasoned
professionals, even for entry-level positions; internship programmes can provide
students with this much needed experience. An internship can be the most impressive
listing on a student’s curriculum vitae resume, and may be the deciding factor in
securing employment (Ramos 1997). Therefore, as academicians, we need to
articulate how internships can affect the search for post-college jobs. Internships help
validate the university’s curriculum and since it is every university’s mission to
graduate well-rounded individuals, the internship experience will continue to be an
integral part in retail education (Cook, Parker, and Pettijohn 2004).
Implications for retailers
Once the university prepares and assists in the placement of a student intern within a
company, it is possible for that company to ruin the actual experience without
proper planning and execution (Coco 2000). To maximize the possibility of a
successful internship, companies should consider the following:
(1) treating interns as a part of the organizational staff (that is, involving interns
in project planning process or inviting them to staff meetings);
(2) assigning projects that are challenging, yet are possible to accomplish;
holding interns responsible for projects and deadlines pertaining to the
project;
(3) providing regular feedback and training as needed;
(4) assigning a mentor/supervisor; and
(5) establishing a permanent hire process and sharing that information with the
intern.
Ultimately, to convert good interns into full-time employees, organizations need
to establish internship programmes that include professional work assignments
that place responsibility on the interns, while providing interesting and challenging
work (Gardner et al. 2008). By continually refining the internship programme,
retailers can provide interns with realistic job previews that clarify work expectations
and maximize the fit between what the intern wants and what the company provides.
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Limitations and directions for future research
The articles reviewed for this study are not intended to provide a complete analysis
of each and every article ever published regarding internships/internship programmes. For parsimony, we intentionally focused on identifying selected issues/
trends regarding internship/internship programmes. Thus, this review attempts to
provide an accurate and objective survey of the literature regarding the changing
nature of internships/internship programmes over the past two decades.
Continued review/research in the area should focus on case studies developed
from critical incidents of best internship practices and empirical evaluation of
internship programme structure, content and delivery methods. Due to the
temporary nature of internships, researchers often avoid using experimental or
longitudinal research designs with internship programmes/experiences. The trends
we identified demonstrate that the internship should be a focus of more rigorous and
sustained study so findings can reveal additional ‘best practice’ insights and trends
regarding internships/internship programmes.
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