Why do firms prefer undergraduate interns?
In the midst of my job search, I am looking to gain a better understanding of what employers are looking for so I can tailor my approach accordingly. I have applied to roles that interest me, focusing on asset management with a specific interest in fundamental equity research and asset allocation. However, I have found it challenging to break into these fields due to a lack of experience.
Considering this, I thought it would be fair for me to pursue an internship, even if it means accepting lower pay ($1-1.5k) for 3-6 months in order to gain valuable experience. However, I have noticed that firms appear to be less receptive to graduate interns. This has left me wondering why this is the case.
One possibility that comes to mind is that firms offer internships as a way to attract potential candidates for full-time positions after they graduate. Those who graduate without interning at a finance firm may be perceived as not truly interested in pursuing a career in finance. While this reasoning may make sense from an employer’s perspective, it can feel limiting to individuals basing their future opportunities on past experiences.
Alternatively, undergraduates are often seen as fresh, bright, and quick learners who are highly sought after by firms. On the other hand, those who have recently graduated may be viewed as being part of the “older” labour market, potentially seen as less adaptable or capable of learning quickly. This perception may shift, however, if recent graduates pursue further education such as obtaining a graduate degree like an MBA. The reasoning behind these biases can be difficult to comprehend.
Regardless of employers’ attitudes towards different types of interns, I am determined to find a way to showcase my abilities and prove myself in this competitive job market. It is important for me to gain a deeper understanding of employers’ perspectives in order to refine my job search strategy and increase my chances of success.
Before any criticism is directed towards my description of recent graduates as “labour market leftovers,” please understand that I am simply trying to capture the sentiments I have encountered. Similarly, my speculation about the perception of recent graduates as being “less able to learn” is based on my interpretation of potential employer attitudes. I am here to gain insights into the current dynamics of the job market.
One response
Firms may prefer undergraduate interns for several reasons:
Long-term Recruitment: Many firms use internships as a way to identify and attract potential full-time employees. By offering internships to undergraduate students, they can gauge their potential as future employees and possibly offer them a job upon graduation. Graduate interns may already have set career paths or different aspirations, making them less likely to accept full-time offers.
Fresh Perspective: Undergraduate interns are often seen as young, eager, and able to absorb information quickly. They may bring a fresh perspective and new ideas to the company, which can be valuable for innovation and growth. On the other hand, graduate interns may be perceived as having established ways of thinking and working, which may not align with the firm’s culture or goals.
Cost-Effectiveness: Undergraduate interns typically accept lower pay compared to graduate interns or full-time employees. This cost-effective option allows firms to allocate resources efficiently while still providing valuable experience to interns.
Eagerness to Learn: Undergraduate students are usually at the beginning of their career journeys and are eager to learn and gain experience. They may be more willing to take on new challenges and responsibilities, making them attractive candidates for internships.
Competition: Undergraduate interns are often in high demand, as many firms look to recruit talented students before they graduate. This competition may make firms more likely to prioritize undergraduate interns over graduate interns, who may have fewer opportunities available to them.
While these are some common reasons why firms may prefer undergraduate interns, it’s essential to remember that individual firms may have their specific preferences and criteria for selecting interns. As you continue your job search, it’s crucial to showcase your skills, enthusiasm, and willingness to learn to stand out to potential employers. Tailoring your approach and understanding employers’ perspectives can help you navigate the job market more effectively.