An Employer’s Guide to Hiring Interns and Co-op Students

May 07, 2024, by Stephanie Messier |

As an employer, should you offer a co-op or internship? They’re two sides of the same coin—and the terms are often used interchangeably—but there are significant differences.

We’re breaking down these differences to help you make a more educated decision on which one (if either at all) makes the most sense for your business

Key takeaways

Both co-ops and internships involve students and early-career individuals performing short-term work for your business.
Co-ops are longer, integrated with academics, and usually paid; internships are shorter, more flexible, not necessarily integrated with academics, and may or may not be paid.
Benefits of either include creating a talent pipeline, saving in hiring costs, earning money through grants, injecting fresh ideas, increasing capacity flexibly, building employer brand, and boosting morale.
Choosing between co-ops and internships depends on preferences around duration, academic credit, pay, work experience, and schedule.
Small businesses can hire interns or co-op students, especially with the help of provincial and federal funding.

What are co-ops and internships?

At their core, co-ops and internships both involve people, often early in their careers or students, coming to work for your company on a short-term or revolving basis (this is different from staff augmentation ).

Here’s where co-ops and internships usually differ:

Co-ops are longer, more intensive, and almost always integrated into a student's academic curriculum. Students often alternate semesters of study with semesters of full-time, paid co-ops related to their field of study.
Internships are shorter, more casual, and may not always be for academic credit. They can be paid or unpaid, and offer more flexibility in duration and scheduling. Because they’re more flexible, they can take place at all times throughout the year.

Benefits of hiring a co-op or intern

There are many potential benefits of hiring a co-op or intern. As a business, going either route can help you:

Create a Talent Pipeline: Secure a stream of future employees already familiar with your business operations and culture.
Save in Hiring Costs: Leverage funding programs to reduce or offset the financial costs of hiring, making it an economical choice.
Earn Money: Access grants and subsidies that not only cover wages but can also provide a net financial gain for your company.
Inject Fresh Ideas and Drive Innovation: Introduce new perspectives and innovative solutions to your team by bringing in co-op students and interns.
Increase Capacity Flexibly: Expand your workforce as needed with motivated co-op students and interns, offering flexibility and eager participation.
Build Employer Brand: Enhance your reputation among potential candidates and educational institutions, improving your attractiveness as an employer.
Increase Morale: Provide existing employees with mentorship opportunities, boosting morale and offering professional growth.

Is hiring a co-op or intern better for me?

To decide whether a co-op or internship is better for your company, consider the comparison below.

Criteria	Co-op Programs	Internships
Duration	Several months to a year, full-time	Usually 1-3 months, can be part-time or full-time
Academic Credit	Often required for graduation, integrates with academic studies	May or may not offer academic credit
Pay	Typically paid	Can be paid or unpaid
Work Experience	Deep, immersive experience in a specific field	Broad, introductory experience
Schedule	Alternates with academic semesters	Often completed during summer or alongside classes

You might benefit more from a co-op program if you:

Want longer-term commitment to dive deep into projects
Have a bigger budget to afford longer-term hiring
Can time your work around academic semesters
Have the ability to tie in your work with school accreditation

Internships may make more sense if you:

Only need shorter-term commitments
Have a smaller budget (or no budget at all)
Need on-demand help throughout the year
Aren’t able to tie in your work with school accreditation

How do I know if I need a co-op or intern?

To know if it’s time to hire a co-op or intern, first ask yourself:

Do I have enough money to afford a co-op or intern?
Do I have enough work to go around?

If the answer is yes to both of these questions, then you can move on to other indicators. For example, you may want to make in-roads with local schools to expand your talent pool, improve your employer brand, or open growth opportunities not possible with your current team.

Still unsure? Check out these signs it may be time to hire additional staff .

Can a small business hire an intern or co-op student?

Small businesses certainly can hire interns or co-op students.

If you’re working with a smaller budget, internships may make more sense as they can be shorter and unpaid.

Funding is another option, as your business may be eligible for hiring grants. There are both provincial and federal grants, so start by searching what’s available in your province.

Here are some resources to check out first:

Even if you can’t find funding to cover your placement entirely, partial coverage can still mean big savings.

Co-op and intern FAQs

How do I ensure a successful internship or co-op placement?

A successful internship or co-op placement comes from defining upfront what you want from the role, communicating expectations to your placement, and regularly providing feedback.

What kinds of companies have internships and co-op placements?

Many different kinds of companies hire interns or co-ops, but you’ll most often see placements in these industries:

Technology (including software development, IT support, data analytics, etc.)
Finance and banking
Engineering (including electrical, mechanical, civil, etc.)
Marketing and advertising
Healthcare (including hospitals, clinics, pharmaceutical companies, etc.)

Do interns get paid?

You can decide to pay or not pay interns. It’s more common to not pay interns if their internship counts as credit. Learn more about how internships are governed in Canada .

Ready to hire an intern or co-op student?

Hopefully, you now feel more confident about whether a co-op or internship makes sense for your business.

For more help with your recruiting needs, whether you’re ready to hire right this instant or simply need answers you can trust, HR à la carte can help.

Learn how by contacting us about our

fractional recruitment services.

Tags: recruiting (5)