Intern Program Cuts Costs, Connects Interns, Employers

Check back over the next month as we will be highlighting the different programs created this year by the Nebraska Legislature through the Talent and Innovation Initiative.

Entrepreneurs can face many challenges as their businesses gain steam. One of those challenges is actually two-fold: how to find and attract talented employees and how to pay them. This article, part of a series on Nebraska’s Talent and Innovation Initiative, will examine InternNE, an incentive program designed to address this two-fold challenge.

InternNE was created by Legislative Bill 386, introduced by Elm Creek Sen. Lavon Heidemann. The law became effective in June and created a program administered by the Department of Economic Development to cover some of the costs of an internship, as well as provide a portal for employers and students to find one another.

Employers and students can register at InternNE.com, a site hosted by careerlink.com, after which they can look for either internship opportunities or potential interns, depending on the perspective.

Also at the site, employers can review eligibility documents and guidelines to find out whether their business qualifies them to receive grant funding to cover a portion of the cost of the internship.

What does all this mean for cash-poor startups? Opportunity.

Consider AgilX, a Lincoln-based software development company. Founded by Jake McElroy and Dustin Clonch, AgilX is in the favorable position of having boot-strapped itself into profitability. While this keeps the company’s corporate equity safe at home, it also leaves much to be desired in terms of paying employees.

McElroy and Clonch learned about InternNE and applied after having incorporated AgilX in March. They were approved to have two internships partially reimbursed under the new program. This perfectly matched their corporate goals and culture.

“We’re not just about selling software, we’re passionate about keeping high-tech jobs in Nebraska,” Clonch said.

The two internship positions have come at an opportune time in the lifespan of AgilX. The company’s goal was to maintain as much internal equity as possible without releasing liability to angel investors.

However, now AgilX is poised to ramp up its productivity, a difficult task without employees – and employees are difficult to bring on without capital. InternNE is making it possible, through subsidies, to bring on those employees below market rates, helping AgilX make its ramp-up easier, and allowing the company to bring on talented interns.

And it isn’t just software companies that are able to take advantage of this new program. “About 22 percent of the positions that have been approved fall within marketing, market research or sales and marketing fields; other highly requested internships are within the finance/accounting, IT/computer technology and engineering and architecture fields,” said Allison Hatch, business development consultant at the Department of Economic Development.

“About 60 percent of the businesses approved for the program are located in the Lincoln and Omaha area, and nearly 45 percent of the filled internship positions are located in Lincoln,” Hatch said.

So what does this mean for you, as an entrepreneur? If you’re looking to expand your staff, and want to utilize this program, there may be grant funding available to your company to reduce the cost of an internship.

Here’s what you do:

• Go to InternNE.com and register yourself as an employer.
• Also available on the InternNE website is the “Employer” section, which contains the necessary documents to be filled out and filed with the state:
• InternNE application form.
• Program guidelines.
• Request for reimbursement form.
• Student verification and evaluation forms.
• Documentation for the Nebraska State Treasurer and the IRS.

After having completed the requisite paperwork and getting approved, companies are then able to post jobs, recruit interns and receive reimbursement for their internships.

For more information on this program, contact Allison Hatch at the Department of Economic Development. Hatch is in charge of bringing employers on board and can be reached at 402-471-3368.