{"id":1901,"date":"2012-06-19T09:00:09","date_gmt":"2012-06-19T16:00:09","guid":{"rendered":"http:\/\/foundersnetwork.com\/?p=1901"},"modified":"2018-11-15T00:21:08","modified_gmt":"2018-11-15T08:21:08","slug":"how-to-compensate-startup-interns","status":"publish","type":"post","link":"https:\/\/foundersnetwork.com\/how-to-compensate-startup-interns\/","title":{"rendered":"How To Compensate Startup Interns"},"content":{"rendered":"

Nathan Parcells, InternMatch\u2019s<\/a> \u00a0CMO and Ashley Mosley, InternMatch\u2019s Community Manager collaborated on this post. You can find them managing the student <\/a>and employer <\/a>blogs or connecting students with awesome internships via twitter @Wayup.<\/a><\/em><\/p>\n

Crash Course: Startup Internship Compensation<\/a><\/p>\n

You\u2019ve shipped your first product and users are raving about it. With plans to add more features, it\u2019s time to expand the team by hiring a few interns. Sound like a familiar scenario? It\u2019s one that most startups \u2013 whether Venture-backed or bootstrapped \u2013 face. \u00a0Chances are that when you started your company, someone advised you on how to make hiring decisions for key employees, but they probably didn\u2019t cover much about hiring interns.<\/p>\n

From our experience at InternMatch, there\u2019s no one-size-fits-all approach when it comes to hiring and deciding on compensation for interns. Much of it depends on factors like location of the internship, company size, experience and the type of internship position. \u00a0For instance, because of their close proximity to tech companies like Google, Facebook and Apple, engineering interns in the Bay area tend to get paid more than interns any place else ($30+ more per hour). \u00a0Competing for talent with these companies mean: offering paid internships, selling students on the startup experience and building a unique and engaging internship program.<\/p>\n

We cover some of our best practices for hiring and compensating interns below.<\/p>\n

Do I HAVE to pay my interns (what does the law say law)?<\/span><\/strong><\/p>\n

Recently, there\u2019s been lots of discussion <\/a>on this subject. Use the Department of Labor\u2019s six-point standard<\/a> to determine if the law requires you to compensate your intern(s). In most cases it will. Interns at startups tend to take on lots of responsibility. To summarize point 4: any intern who provides value must be paid at least minimum wage.<\/p>\n

Click here<\/a> for a list of minimum wage requirements by state.<\/p>\n

How Much Does Top Talent Cost?<\/span><\/strong><\/p>\n

If you want to attract top talent to your company and distinguish your internship from competitors, then you should be prepared to compensate interns for their hard work and their time. The chart below gives a few industry averages for various internship roles at startups\/tech companies. These averages may vary based on location and student experience, so use your discretion.<\/p>\n

\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n
Position<\/td>\nTop 25% \u00a0(hourly)<\/td>\nTop 5% (hourly)<\/td>\n<\/tr>\n
Communication\/PR<\/td>\nMinimum Wage<\/td>\n$12-$15<\/td>\n<\/tr>\n
Marketing<\/td>\nMinimum Wage<\/td>\n$12-$15<\/td>\n<\/tr>\n
Comp. Sci.\/Engineering<\/td>\n$12<\/td>\n$15-$25<\/td>\n<\/tr>\n
MBA<\/td>\n$12<\/td>\n$15-$20<\/td>\n<\/tr>\n
Non-Profit<\/td>\nUnpaid\/Small Stipend<\/td>\n$12<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Additional reasons to pay students:<\/p>\n