Internships

Internship Program Retention Rates Underscore Long-term ROI

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Internship programs are about more than just getting quality hires in the door: Retention metrics reported in NACE’s 2026 Internship & Co-op Report demonstrate the long-term ROI of having a program.

According to the report, more than three-quarters of new hires who had an internship with the employer are retained after one year, and more than half remain with the organization after five years. (See Figure 1.)

The retention rates remain elevated for employees with internship experience at other organizations; nearly two-thirds remain after one year and nearly half stay on after five years.

However, the percentages drop among employees with no internship experience, with less than half still on board after one year and only around one-third still with the organization after five years.

However, higher retention rates are just one of the benefits of internship programs. Employers hail these programs as effective recruiting tools that allow them to identify early talent and develop skills in and strengthen ties to top talent in order to convert them to full-time roles following graduation. This effort is showing up as the conversion rate surged to 63.1% for 2024-25 interns, the highest rate in five years.

NACE surveys its employer members yearly to gather benchmarks on internship and co-op programs. NACE conducted the survey for the 2026 Internship & Co-op Report, sponsored by 12twenty, from October 15, 2025, to January 4, 2026. A total of 284 organizations took part, including 192 NACE member organizations (26.1% of eligible member organizations), 48 12twenty member organizations, and 44 other companies. Participants can access the NACE’s 2026 Internship & Co-op Report and dashboard in MyNACE.

One-year and five-year retention rates for interns
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Kevin Gray is a senior editor at NACE. He can be reached at [email protected].