Hurst, J. L., & Good, L. K. (2008). The dynamics of increasing conversion rates: Practical implications for retail-related businesses. Journal of Cooperative Education and Internships, 42(1), 76-91.
Employee turnover in retailing has always been high. Nevertheless, due to the abundant, young labor force in the United States, retailers experienced high turnover with minimal consequences, until now. Experts predict a labor shortage, due to retiring baby boomers and small number of the next generation entering the workforce. Yet, as the pool for entry-level employees shrinks, and the job market continues to get more and more competitive, retailers will need to revisit their current attraction/retention strategies quickly in order to effectively respond to this upcoming labor shortage. One potentially viable strategy is for retailers to offer internships opportunities to college students. Internships allow both the intern and the company the opportunity to determine if the intern possesses the qualities necessary to adapt to the firm's culture. Converting good interns to full-time employees is becoming the preferred path to a permanent position within the firm; however, conversion rates within the retailing industry are lower than employers would like. Therefore, to assist retailers in finding ways to increase internship conversion rates, we studied interns' intent to accept a job offer upon successful completion of their internship program. Data was collected by partnering with companies and faculty from five universities who have access to internship students. The survey instrument was on-line. A structural equation procedure was used to test a model of internship conversion. Findings indicate significant and positive path coefficients for the most hypothesized paths. Findings will assist in the development of organizational strategies that can improve accuracy of internship conversion.