Do you pay your employee resource groups (ERGs)? You should!
At the start of 2021, LinkedIn reported that jobs related to diversity, equity and inclusion (DEI) are among the most in-demand on the job market, but because of the labor shortage, the lack of existing training and the novelty of the topic, it’s difficult for companies to find DEI professionals. Failing to hire this scarcity, companies can turn to committees or employee resource groups (ERGs) for advice. But beware of paying for this extra work!
What is an Employee Resource Group (ERG)?
Employee resource groups, also known as affinity groups, serve and support corporate culture. Typically, they are organized around a common identity, such as ethno-cultural background, gender, age, sexual orientation or mental health. They serve as a safe space, providing a physical or virtual place for under-represented employees to come together and avoid feelings of isolation.
What are the benefits of having ERGs?
In this day and age, many employee resource groups have evolved from social groups to entities closely aligned with corporate objectives and career development. ERGs bring many benefits to organizations:
- They can identify and help develop internal leaders
- Their presence generally leads to higher retention rates
- They can train employees – including managers – through internal events, panels, workshops, etc.
- They can also help companies recruit under-represented individuals and develop a talent pool.
Why and how much should you pay your employee resource groups?
LinkedIn began paying the leaders of its employee resource groups in July 2021. LinkedIn explains, “Historically, these employees take on leadership roles on top of their day jobs, contributing time and energy. And despite the enormous value, visibility and impact for the organization, this work is rarely financially rewarded.” As of this summer, GRE co-leaders have a two-year mandate and will receive $10,000 at the end of each year of service.
Two other companies that have also started paying their leaders: Twitter and Justworks.
It’s not easy to put a dollar figure on the invaluable benefits employee resource group leaders bring to their companies, but that doesn’t mean we shouldn’t try. A recent study by The Rise Journey found that only 5.56% of the 70 companies surveyed currently pay their ERG leaders.
How do you estimate how much to pay? Start by asking how much time leaders devote to these functions. For JustWorks, this is 10-20% of their time. If the ERGs are involved in recruiting, you can also estimate how much time they spend and how much, for example, other recruiters are paid, and try to determine an amount.
What’s important to note here is that the leaders of employee resource groups tend to be ethnoculturally diverse people and women. This means that companies are asking employees who are historically paid less than the majority group to do extra work. This is not fair.
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