Employers participating in NACE's 2006 Experiential Education survey reported plans to increase the number of interns they bring into their organizations by nearly 10 percent this year.

"The increase in intern hiring tracks with the increase we're seeing in full-time hiring," said Marilyn Mackes, NACE executive director. A NACE report released in April found that employers expected to increase their new college graduate hiring by 13.8 percent in 2005-06 over 2004-05.

More than three-quarters of respondents (75.9 percent) said the primary purpose of their internship program is to feed their college hiring program. In fact, on average, respondents converted 53 percent of their interns from the class of 2005 into full-time hires.

"Internship programs are a way for employers and students to test each other out," said Mackes. "Employers get the chance to see the students in action, to see how they perform and fit into the workplace. At the same time, students have the opportunity to see if they fit the organization and the work."

College graduates find that having an internship pays off in terms of the starting salaries they are offered for full-time jobs. Nearly half of the employers (46.2 percent) participating in the survey said they offer higher starting salaries to new college hires who have internship experience.

Among those offering higher starting salaries to candidates with internship experience, more than half reported that they have a set percentage that they add on top of their entry-level salaries. On average, they add 6.8 percent more to the position's entry-level salary.

Others reported that they add a set dollar amount to their entry-level salaries, or base the extra on the candidate's experience itself or on a combination of factors.