Understand the Function of Workplace ERGs to Determine Equitable Compensation: Active vs. Community ERGs

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In 2020, only six percent (6%) of workplaces compensated employee resource group (ERG) leaders in some form. Last year46% of workplaces did, according to the 2022 State of ERG Report. (Go to our website and sign up for our newsletter to be the first to receive our 2022 Report, coming soon in Q1!)

In 2023, employees expect more from their employers, and that includes a clear commitment to creating a better workplace. For organizations looking to meet this challenge, it's not too late to take action and adapt the initiatives needed to compete with fast-adapting organizations. 

How can leaders ensure they are taking the right steps to implement the most empowered and impactful resources for their employees and work teams? Ensuring the employee resources groups (ERGs) and Diversity, Equity, Inclusion, Belonging, and Accessibility (DEIBA) centered initiatives are supported with a clear strategy and most importantly, fair compensation and financial planning is a great way to start.

A question we have seen circling the ERG conversation is: Should ERG Leaders be compensated the same amount? My response: Not exactly …

In my experience, understanding the unique functions and dynamics of the ERG can help understand your ERG’s compensation needs. I’ve noticed two emerging styles of development of workplace employee resource groups that differentiate by goals, aims, and levels of activity: ‘Active’ and ‘Community-Driven’.

Active ERGs vs Community- Focused ERGs

Active ERGs are Driven/ Motivated to Spread Awareness. They tend to prioritize initiatives that focus on expanding the community, garnering important levels of respect (internally and externally to the organization), career and compensation equity, and exploring additional opportunities in the workplace.

These groups are often committed to spreading awareness of their shared experiences and creating a community. 

Based on previous ERG surveys, LGBTQIA+ and Black employee resource groups tend to be more active, vocal, and driven to take action. This could likely be due to the increased levels of discrimination, racism, and targeted hatred these communities receive in U.S. communities and workplaces, and as well as it could also be connected to the demographic makeup of organizations.

Community-Focused ERGs Motivated to Share Resources and Support. Members of these groups are looking, more so, for a safe space to connect with others with a similar or shared experience(s), resources, and support.

In terms of operations, these groups are often interested in meeting with their workplace communities where they are at, and they often are diligent in planning fewer, but intentional and well-organized, events that better reflect the abilities of their community.

Parents and Caretakers, and Disability ERGs often are more community-driven, and these groups may choose to operate more independently, with fewer participation goals. 

In what ways do varying ERGs and ERG Leaders require different compensation models?

To start, all ERG leaders should be compensated for their extra work. What employers need to understand is how their ERGs operate best, what level of support they offer their communities, and what workplace needs that ERGs would be expected to support.

Here are a few items to consider regarding the responsibilities of your workplace’s ERG and the respective ERG leadership role, to determine appropriate compensation:

How many events do you expect the ERG to organize or participate in? How much time do you dedicate to ERG activities? It can be helpful to map out what levels of participation your workplace requires, and if expectations also fall outside of just ERG-related activities. For example, some workplaces benefit from having their ERG leader work with and support recruitment.

• Set a standard compensation amount. Set specific expectations, outcomes, and goals - and be even clearer about how they will be tracked and managed.

• Suggest having an ERG compensation re-evaluation plan. A year-long contract and plan for compensation can be intimidating for many, especially considering ERG leaders often are adapting additional responsibilities on top of their current work position. Creating opportunities for check-ins, flexibility, re-evaluation, and reflection periods can help you work with ERG leaders to ensure they're still available, willing, and able to hit the expected goals, or define what they need in support of reaching them.

• If you are considering compensating ERG leaders differently, be transparent about how it is dependent on group needs. Not all groups require or want the same ERG functions and dynamics. However, spending time understanding the needs of the group as a whole in the workplace can help outline the role of the leadership position. Give groups and individuals the flexibility and freedom to choose the type of ERG they’d like to create, and be sure to provide this opportunity to each group. 

• Work with your ERGs to set a standard compensation amount. Read through a checklist of questions to make sure you're asking and resolving need-to-know questions and instilling a relationship of transparency and clear communication between you and your workplace’s ERGs. Expect ERG leaders of different groups to communicate with one another as well! Build standard ERG lead compensation and communication plans to avoid miscommunications and inequity. Some of the questions we recommend in our ERG Question Checklist are listed below.

  Questions to ask ERG leaders:

  1. How do you anticipate supporting your community?

  2. What resources do you need to be able to fulfill your goals?

  3. How many people do you have on your board?

  Questions for organization leadership:

  1. How will you communicate the compensation strategy for ERG leaders?

  2. What criteria do you have established for determining compensation?

  3. What factors are outside of their control? 

  There are so many variables when it comes to ERG leadership models, goals, initiatives, and ultimately, how they can best support their community. However, there are still ways to find the right approach to ERG leader compensation - it just takes doing the groundwork to understand the unique functions of the ERG.