Hiring incredible team members is critical to a company’s DNA—it’s also a perennial challenge. Talented new graduates who are unfamiliar with the work-scape may default to pursuing “big name” companies. The scramble for outstanding candidates becomes even more competitive in industries like high technology, engineering, and accounting—not to mention emerging fields like social media marketing and user experience design.

Recently, internship programs have become the number one way for employers to hire new graduates, and for good reason: the internship, often viewed as an extended interview, reveals a student’s strengths, cultural fit, and capacity for growth. Economically speaking, recruiting costs run up to 20%-35% of a new hire’s starting salary. Whereas a recruiter will charge you $20,000-$35,000 to hire an engineer (a conservative estimate), you could hire four summer interns for the same amount. Should you hire even one of those interns, you’ll have beat the system.

To successfully convert interns into full-time employees, make sure you cover the bases below.

Build Brand Visibility

Attracting potential full-time hires to your company means making a name for yourself among students. While some companies are fortunate to have massive consumer brands that already appeal to students (Google and Facebook are familiar examples), most companies’ brands don’t readily lend themselves to students—and many companies can’t claim any brand awareness at all.

In 2011, employers reported that the number one reason they attended career fairs was to build a brand on campus. With students increasingly relying on online resources, creating a Campus Hub is another solution that places your company in front of top talent nationwide. Its customizable features showcase the benefits of working with your company in particular. In terms of creating a lasting web presence that promotes a positive student experience, a Campus Hub packs a punch.

Plan Ahead

Big companies begin recruiting efforts in September and October, so to remain competitive, start your hiring cycle early. This entails reaching out to hiring managers, determining hours and pay, posting internship listings, and interviewing candidates—all on a timeline. Consider creating internship programs reserved for college sophomores and juniors to build student relationships early in an undergraduate career; this also positions your company to invite them back for summer periods. As your confidence in your interns grows, you may prepare to make an offer as early as their senior year of college.

Perfect the Internship

Students talk, so it’s crucial to manage a successful internship program that challenges students and enriches their professional lives. For a comprehensive guide to setting up your internship parameters, refer to our FAQ and Guide On How to Hire Interns. We always advise employers to offer paid positions, both to stay within the Fair Labor Standards Act and to generate more excitement around the role.

During the internship, evaluate your intern’s potential to become a full-time employee. Gauge his or her initiative, enthusiasm, and follow-through—qualities you’d look for at any stage of the hiring process. One elucidating tactic is to increase the position’s responsibilities over the course of three or four months, transitioning the internship into employment. Our Ten Tips to Effectively Manage Interns will help you steer your internship and build a good foundation for hiring later on.

Incentivize the Sign-On

Once you’ve found the right student, make sure you’re ready to make a compelling offer at the end of their intern stay. Given that an exceptional employee can make a huge impact on your company’s growth, you may add incentives to an offer of employment. Boeing, for example, famously pays for its employees’ tuition, enabling them to take career-furthering classes and pursue higher degrees. Alternatively, employers can help with relocation costs—an especially enticing offer for newly graduated students who hope to begin careers in urban hubs like New York, Chicago, or San Francisco. Other incentives may include a healthy benefits package, a signing bonus, or equity.

The Bottom Line

Converting interns into full-time employees ensures that new additions to your team are suited for the position. To save on recruiting costs and time, build an employer brand that appeals to Gen Y, develop a standout internship program, plan for early hiring cycles, and offer incentives that seal the deal.