If you’re in Talent Acquisition, you already know the hiring market is freezing. Over the last two years, job openings fell by 27%, new hires dropped 14%, and voluntary departures–typically a sign of a healthy labor market–are down 18%. Early optimism about a surging U.S. economy in 2025 has darkened as economic forecasts predict shrinking GDP, and consumer confidence has fallen to a 2-year low. 

All of this uncertainty is driving companies to slow their pace of hiring. Still, technological advances, particularly in AI and automation, have CEOs focused on recruiting the skills of the future as an existential mandate. This leaves recruiting leaders at the crux of a paradox: How do you recruit new, high-demand talent as your organization’s appetite for new hiring is at an all-time-low?   

The answer is looking to early career talent, and this is possibly the most important internship season in the last 5 years.

Internships: The Best (and Cheapest) Way to Future-Proof Your Organization

In a year where recruiting budgets are tight and full-time hiring is slow, Early Career Recruiting–both full-time and particularly internships–offers a lower-cost, high-reward strategy to win the new skills organizations need. One analysis found that hiring early talent can save up to 50% in costs compared to hiring someone with 3-5 years of experience, a huge cost advantage that allows organizations to develop talent and new benches of skill at a fraction of the cost. 

And it’s not just about cost—it’s about impact. Early career talent is uniquely positioned to fill critical skill gaps. They’re digital natives, often more proficient in emerging tech and integrating AI into workstreams than more senior hires. Some companies are already shifting to win this group. In a moment where lateral hiring is slowing, Early Career recruiting is projected to accelerate, particularly for tech or tech-enabled industries. So, the race for early career (tech) talent is already on, but how do you win it? 

 

Intern-to-FT Conversion: The Smartest Bet in a Slow Hiring Market

 

In a frozen hiring market, one of the smartest ways to highlight the value of Early Career Recruiting to the organization? Prioritize intern conversion. Interns represent a ready-made pipeline of skilled, pre-vetted talent who understand your organization. 

For Heads of University Recruiting, this is the year to double down on internships. For Heads of University Recruiting, this is the year to double down on internships and boost conversions by designing an intern experience that’s as enriching as it is practical. 

• Make the work matter: Assign projects that are tied to real business outcomes, not just “intern busywork.” When interns see how their contributions fit into the bigger picture, they’re more engaged and invested.
• Build real-world skills: Make sure interns walk away with tangible growth—whether it’s sharpening technical skills, leveling up communication, or learning how to navigate a professional environment. The more prepared they feel, the more likely they are to say yes to a return offer.
• Foster belonging: Create a sense of community through intentional culture-building. From mentorship and team inclusion to executive roundtables and social events, ensure interns feel like they belong and can see themselves at your company long-term.

 

A winning internship program doesn’t happen in a vacuum. Intern conversion works best when it’s aligned with headcount planning. Without coordination across business units, even the strongest intern won’t have a seat to return to. That’s why workforce planning has to go hand-in-hand with experience design. We know workforce planning is one of the toughest pieces of the puzzle—which is why our research team is digging into it more deeply in the weeks ahead.