askST Jobs: Why do some internships pay so much more than others?

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Q: Why do some internships pay so much more than others?

A: Internships serve a strategic purpose of helping students gain work experience during their studies, develop professional skills and build industry networks, says a spokesperson for the Centre for Future-ready Graduates at the National University of Singapore.

In addition, internships form part of a multi-faceted undergraduate experience, offering students valuable industry exposure and opportunities to build up their skills and employability, says Mr Kevin Lee, an industry relations consultant at Nanyang Technological University’s career and attachment office.

Internship remuneration in Singapore can vary widely, he says, with most industries offering stipends in the range of $1,000 to $2,000.

The NUS centre spokesperson says allowances for interns typically range from $1,000 to $1,500.

Most internship stipends for Singapore University of Technology and Design students are between $1,200 and $1,500 per month, varying according to industry and role, says Ms Angelvin Parma, head of the university’s career development centre.

However, she adds: “In some cases, the stipend can increase several-fold for specialised positions in sectors such as analytics or software engineering, where candidates are expected to demonstrate strong technical and problem-solving skills.”

Other high-paying internships include front-office roles in investment banking, sales, and trading and private wealth management at large international banks.

Quantitative finance and trading firms provide some of the most lucrative options available for interns, Mr Lee of NTU says.

The Straits Times understands that internship salaries can handily exceed $10,000 a month in some of these roles in finance and technology.

In consulting and technology firms, internship compensation also tends to be high, especially in selective firms and specialised technical roles, Mr Lee adds.

“These trends have been consistent over the years. International banks and financial institutions, global quantitative finance firms, top consulting houses and high-performing technology companies have long offered premium compensation due to intense competition for top early-career talent,” he notes.

“This is reinforced by the fact that internships serve as the primary feeder pipeline into these firms’ full-time management associate and early-career programmes.

“Employers also expect these interns to contribute immediate analytical or commercial impact, especially as demand for technical and data-driven skill sets continues to rise.”

Start-ups are also increasingly a draw for prospective interns, says Ms Parma.

“This trend is driven by advancements in areas such as artificial intelligence and digital transformation, creating more opportunities for students to gain hands-on experience,” she says.

However, Mr Lee also notes: “While these opportunities are highly rewarding, students should be aware of the associated trade-offs.

“These internships are often highly demanding, with steep learning curves and high-pressure environments.”

Ms Parma says: “Companies may also implement more rigorous selection processes, including technical assessments and multiple interview rounds with hiring managers.”

There can be substantial career benefits in high-octane internships.

These include getting in pole position for a full-time offer even before graduation, sparing students an intense job search for a highly coveted role after graduation.

“Generally, these higher-paying internships provide exposure to complex projects, specialised roles and skill sets, as well as best practices, from reputable organisations, which can enhance future employability,” says Ms Parma.

To increase the likelihood of securing higher-paying internships, students are encouraged to strengthen their technical skill sets, participate in hackathons and competitions, and build strong portfolios and resumes, she says.

“They should also research the companies they are applying to, to better align themselves with the companies’ aims and objectives.”

Ms Parma adds that career coaches can review resumes and conduct mock interviews to ensure that students are well prepared.

However, the experts also stress that salary should not be the key factor in deciding which internship to plump for.

The NUS centre spokesperson says: “We encourage (students) to consider factors beyond remuneration, such as whether a role aligns with their career aspirations, whether the job scope offers meaningful learning outcomes, and whether there are opportunities for conversion to full-time employment.

“Our focus is on supporting students in making informed decisions that strengthen their career-readiness and future employability.”

Mr Lee says it is important for students to strike a healthy balance with other pursuits during their time in university, such as their studies, co-curricular activities, personal development and family commitments, rather than view internship pay as the sole deciding factor.

“Ultimately, the most meaningful internships are those that align with a student’s learning goals and overall growth, rather than (about) compensation alone.”

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