Should You Compensate Your ERG Leaders?
Most employee resource group (ERG) leaders work day and night to support their fellow group members. More often than not, they perform this work for free or receive very little monetary compensation.
Their work is viewed as volunteerism, and they are provided minimal resources to support their efforts. The professional goals of ERG leaders are put on the back burner, compromising their career ambitions. It is a position that requires communication, creativity, innovation, determination and a deep reservoir of emotional bandwidth.
Companies that truly value diversity, equity and inclusion are willing to provide their ERG leaders with the resources necessary to achieve success.
The Significance of ERGs
An employee resource group, also known as an affinity group or a business network group, is a collection of employees brought together by shared characteristics and experiences.
The purpose of an ERG is to support employees by providing opportunities for upward mobility within the company, allowing the voices of marginalized individuals to be heard, reducing bias and discrimination and so forth.
Historically, ERGs have served marginalized groups including, but not limited to, the LGBTQ+ community, people of color, people with disabilities and women. In the modern world, ERGs have expanded to incorporate volunteerism, environmentalism, mental health, physical wellness and other activities.
ERGs have been known to support branding and marketing, learning and development as well as employee retention. ERGs that align with your company’s values will cultivate a sensationally diverse, equitable and inclusive workplace.
Facts and Statistics about ERGs
Companies that compensate their ERG leaders are seeing a huge increase in engagement. Software Advice conducted a survey in the United States, and discovered the following:
70% of individuals, ages 18 to 24, were more inclined to apply for work at a company with ERGs
52% of individuals, ages 25 to 34, were more inclined to apply for work at a company with ERGs
50% of individuals would continue to work for a company with ERGs
What Is an ERG Leader?
An ERG leader is an employee that guides other employees within the group. They may create activities, seek career advancing opportunities, facilitate collaboration, drive employee engagement and lead important discussions among other things.
To put simply, ERG leaders are the backbone of ERGs. They contribute a commendable amount of time and effort to the success of these groups.
Generally speaking, ERG leaders come from underrepresented groups and understand the importance of a space solely for individuals like themselves. Their passion to help other professionals from underrepresented groups leads to the elevation of the ERG and the company as a whole.
Business Case for Compensation for ERG Leaders
In order to secure funding for compensation, you may need to create a business case to present to executives, COOs, CEOs and others in leadership positions.
Your business case should explain why compensation is important and how it will better your company’s diversity, equity and inclusion program (among other benefits).
Common points include:
Attraction and Retention of Top Talent
Increased Creativity and Innovation
Enhanced Problem-Solving Abilities
Improved Customer Relations
Better Financial Performance
10 Ways to Compensate ERGs Without a Budget
Nominate ERG Leaders for an internal award for their work ethic, professionalism and overall success.
Identify mentorship opportunities. As marginalized individuals, ERG leaders are often overlooked for mentorship opportunities that will help them advance their careers. Connect them with a senior leader or vice president and create a mentorship schedule so that they may work together.
Showcase ERG leaders within management. Notify managers, VPs and other leaders of the impressive skills, relentless effort and accomplishments of ERG leaders.
Utilize employee recognition platforms and softwares (e.g., Achievers and OC Tanner) to promote recognition within the organization.
Attempt to secure an end of the year bonus for ERG leaders (even if it’s small!).
Provide exclusive learning and development opportunities. In other words, training, workshops, resources and opportunities that are not available to all employees. These opportunities should help them as an ERG leader and contribute to the growth of their leadership career within the organization.
Share positive, unsolicited feedback with their managers year round and during performance review season.
With regard to performance management, create a “giving back to the company” or “volunteer work” area for company performance. This will allow ERG leaders to be recognized for their contributions.
Nominate them for an external award for their work ethic, professionalism and overall success.
Provide them with a LinkedIn skill endorsement. Skill endorsements publicly attest to the professional ability of an employee. This will earn them recognition from colleagues, managers and important stakeholders.
Treat Your ERG Leaders Well!
While the aforementioned ideas are an excellent place to start, they should not replace monetary compensation for ERG leaders. Ideally, they should be provided in addition to monetary compensation. ERG leaders deserve a level of recognition that matches their efforts to support their groups and their organizations.
Diversity, equity and inclusion programs would be severely impacted without the presence of ERGs. Tomorrow is a new day, let’s strive to treat ERG leaders well.
