In today’s evolving workforce, employers face both a challenge and an opportunity: tapping into the energy, creativity, and potential of young talent through internships and apprenticeships. Students and youth represent a dynamic pool of workers eager to gain experience, contribute fresh perspectives, and grow into skilled professionals. For businesses, this translates into a chance to build a pipeline of talent while addressing immediate needs. But how can employers harness this potential effectively? The answer lies in structured programs like internships and apprenticeships, paired with funding streams that make hiring youth accessible and sustainable.
This guide explores the avenues available to employers, particularly in California, offering practical insights into internships, apprenticeships, financial resources, and projected costs. Whether you’re a small business owner or a corporate leader, understanding these options can transform how you engage with the next generation of workers.
Why Students Matter to Your Business
Hiring students is a positive strategic investment for employers. Young workers bring adaptability, tech-savviness, and a willingness to learn, all traits that can invigorate your company’s culture and operations. Studies show that businesses with diverse age groups often see improved innovation and problem-solving. Plus, with youth unemployment rates historically higher than the general population (e.g., 19.3% for 16–24-year-olds in California during 2021, per the Employment Development Department), employers can play a pivotal role in bridging this gap while meeting their own needs.
The key is to structure their involvement through programs that benefit both parties. Internships and apprenticeships stand out as proven models, each with unique advantages, and funding streams can offset costs, making these initiatives even more appealing.
Internships: A Flexible Entry Point for Student Talent
Internships are a familiar starting point for employers looking to engage students. These short-term, often project-based opportunities allow businesses to test talent, tackle specific tasks, and mentor young workers, all while giving students real-world experience.
Benefits of Internships for Employers
- Low Commitment, High Reward: Internships typically last a few weeks to a few months, letting you assess a student’s fit without a long-term obligation.
- Fresh Ideas: Students often bring current academic knowledge and new perspectives, especially in fields like technology, marketing, or design.
- Talent Pipeline: A successful intern can transition into a full-time role, saving you recruitment time and costs later.
Legal Considerations in California
In California, unpaid internships must meet strict criteria under the Department of Labor Standards Enforcement (DLSE). The internship must primarily benefit the intern through training akin to an educational setting, not displace regular employees, and not entitle the intern to wages unless the work directly benefits the employer. Paid internships, however, offer flexibility and attract a broader pool, ensuring equity for students who can’t afford to work for free.
How to Structure an Internship Program
- Define Goals: Are you looking for help with a specific project, like social media management, or broad exposure to your operations?
- Offer Mentorship: Pair interns with experienced staff to maximize learning and engagement.
- Set Clear Expectations: Outline tasks, hours, and outcomes to avoid confusion.
California employers can tap into programs like the Afterschool.org Opportunity Network, which connects 16–24-year-olds with paid and unpaid work experiences, including internships. This can be a starting point for finding motivated candidates.
Apprenticeships: Building Skills for the Long Haul
While internships offer flexibility, apprenticeships provide a deeper investment in skill-building. These “earn-and-learn” programs combine hands-on work with classroom instruction. For employers, they’re a way to mold students into highly skilled workers tailored to your industry.
Why Apprenticeships Work for Employers
- Customized Training: You shape the curriculum to meet your specific needs. By working collaboratively with educational partners, you can shape the training to meet any skill set: advanced manufacturing, drone technology, and more!
- Loyalty and Retention: Apprentices often stay with the company that trains them, reducing turnover.
- Cost Efficiency: Paid apprentices start at lower wages, and funding can offset training expenses.
California’s Apprenticeship Boom
California is a leader in expanding apprenticeships, with a goal of 500,000 registered apprentices by 2029, set by Governor Gavin Newsom. The state has invested heavily—over $231 million in 2022–2023 alone—targeting emerging fields like IT, healthcare, and education. The California Apprenticeship Initiative (CAI) supports new programs, while the California Opportunity Youth Apprenticeship (COYA) Grant focuses on 16–24-year-olds from disadvantaged backgrounds, offering up to $6,000 per pre-apprentice for training and stipends. Many of these grants have been distributed to local educational agencies.
Getting Started with Apprenticeships
- Partner with a Program: Collaborate with community colleges, workforce boards, or intermediaries like Student Hires to get access to highly adept youth apprentices.
- Identify a Need: Identify a need within your organization that an apprentice could fill. These can be an already existing opening, or you can custom-design a position alongside your partners!
- Recruit Strategically: Target students who demonstrate an ability to impact your organization. Students receive training support and constant guidance throughout the apprenticeship.
For example, a tech firm could develop a drone engineering apprenticeship, blending on-site UAV maintenance with coursework, preparing students for roles in an emerging field.
Projected Costs: What Employers Can Expect
Understanding the financial commitment of hiring students is crucial. Below, we break down the projected costs for an internship or apprenticeship in California over 6 months (600 hours minimum, assuming 25 hours/week for 24 weeks) at two starting wages—$16.50/hour (California’s minimum wage as of January 1, 2025) and $20.50/hour (a competitive rate for skilled roles). We’ll also compare the two and highlight cost optimization strategies.
Cost Breakdown
- Base Wages:
- $16.50/hour: 600 hours × $16.50 = $9,900
- $20.50/hour: 600 hours × $20.50 = $12,300
- Payroll Taxes (estimated at 10% of wages, including Social Security, Medicare, and California-specific taxes like State Disability Insurance):
- $16.50/hour: $9,900 × 10% = $990
- $20.50/hour: $12,300 × 10% = $1,230
- Total Direct Costs:
- $16.50/hour: $9,900 + $990 = $10,890
- $20.50/hour: $12,300 + $1,230 = $13,530
- Additional Costs (e.g., training materials, supervision; estimated at $500 flat for simplicity):
- $16.50/hour: $10,890 + $500 = $11,390
- $20.50/hour: $13,530 + $500 = $14,030
Comparison
- Difference: $14,030 (at $20.50/hour) – $11,390 (at $16.50/hour) = $2,640
- Insight: Paying $20.50/hour increases costs by about 23% over $16.50/hour for 600 hours. The $2,640 gap reflects higher wages and taxes but could attract more skilled or motivated students, potentially boosting productivity.
Cost Optimization Strategies
- Leverage Funding: Use COYA Grants ($6,000/apprentice) to cover over half the $11,390 cost at $16.50/hour, reducing your outlay to $5,390. WIOA funds can offset wages further.
- Tax Credits: Claim the Work Opportunity Tax Credit (up to $9,600) for eligible youth, potentially covering most or all costs at either wage.
- Hybrid Roles: Assign interns/apprentices to revenue-generating tasks (e.g., client projects) to offset expenses with output.
- Group Training: Train multiple students together to spread supervision and material costs, lowering the per-student burden.
These figures assume a basic setup; costs could rise with benefits or specialized equipment, but funding can mitigate this. Higher wages might yield better retention or skill levels, a trade-off worth weighing.
Funding Streams to Support Youth Employment
Hiring students doesn’t have to strain your budget. Federal, state, and local funding streams can ease the financial burden, especially in California.
Federal Funding Options
- Workforce Innovation and Opportunity Act (WIOA): Grants for youth employment programs, including apprenticeships and internships, targeting 14–24-year-olds.
- Tax Credits: The Work Opportunity Tax Credit (WOTC) offers up to $9,600 per hire for certain youth.
California-Specific Resources
- COYA Grants: Up to $6,000 per pre-apprentice, with $16 million available in Q1 2025.
- Apprenticeship Innovation Funding (AIF): $135 million over three years for non-traditional apprenticeships.
- Regional K-16 Education Collaboratives: $250 million for career pathways.
Other Avenues
- Student Hires & The Afterschool.org Opportunity Network: Technical assistance and employer of record services.
- Private Grants: Philanthropic funds via groups like the California Workforce Association.
Contact your local workforce board or DAS for details. Combining funding streams such as WIOA for wages and COYA for training maximizes savings.
Best Practices for Engaging Students
- Focus on Equity: Prioritize disadvantaged youth for diversity and untapped talent.
- Leverage Technology: Use virtual tools to reach students statewide.
- Measure Success: Track skill gains and retention to refine your approach.
Emerging Trends: Why Students Are Your Future Workforce
The demand for a skilled, adaptable workforce is reshaping how employers view students, particularly as industries like technology, renewable energy, and healthcare evolve rapidly. According to the U.S. Bureau of Labor Statistics, jobs requiring technical skills, such as software development or advanced manufacturing, are projected to grow by 10% through 2032, outpacing traditional roles. Students, immersed in cutting-edge education and digital tools, are uniquely positioned to meet these needs. In California, programs like the California Community Colleges’ Strong Workforce Program are aligning curricula with industry demands, producing students ready for roles in AI, drone technology, or sustainable design. For employers, this trend underscores a strategic advantage: hiring students now means accessing talent already attuned to the incoming job market, often at a fraction of the cost of seasoned professionals. Staying ahead of student workforce trends can position your business as an innovator while securing a competitive edge.
Maximizing ROI: Turning Student Hires into Long-Term Assets
Investing in students through internships or apprenticeships is about cultivating long-term value for an organization. A 2023 study by the National Association of Colleges and Employers found that 70% of interns offered full-time roles accept them, compared to 40% of external hires, highlighting retention potential. In California, Student Hires helps to pair students with employers in high-growth sectors, partnering with local educational agencies to bridge employer relationships. To maximize return on investment, consider integrating students into strategic projects such as a marketing campaign or product prototype, where their contributions can generate measurable outcomes. Pair this with mentorship to accelerate skill mastery, and you’re not just covering costs but building assets that grow with your company. For employers, this dual benefit of immediate help and future leadership makes California youth employment programs a huge driver for economic and regional growth.
A Partner in Your Journey
Navigating these options can feel complex, but Student Hires simplifies it. Based in California, we connect employers with motivated students, tailoring recruitment and program design to your needs, whether it’s a short-term internship or a long-term apprenticeship. Reach out to explore how we can support your goals.
Students are the future of your workforce. With internships for flexibility, apprenticeships for depth, and funding for sustainability, employers can build a robust talent pipeline while empowering youth. In California, the opportunities are ripe. Start small, scale up, or tap into a grant to start unlocking the power of youth interns and apprentices.