ERG Leader Compensation

Managing an ERG is a significant commitment, often added to a leader’s regular workload. As an ERG Program administrator, provide structure and set clear expectations across all ERGs. Encourage leaders to create a charter and set realistic goals while defining the time commitment for events and initiatives. Consistency across ERGs is key, especially when evaluating leader compensation. Most importantly, ensure the ERG leadership experience is both professionally and personally rewarding.

Financial Compensation

Let’s address the elephant in the room, some organizations do provide financial compensation to their ERG leaders. If budget permits you could consider a similar approach to reward your ERG leaders for their work. If you are trying to get buy-in for this at an executive level, it’s important to show the value of the group and define what initiatives are planned for that group. In cases where ERG leaders are compensated for their time, it’s important to set very clear expectations around their roles, responsibilities, and length of commitment. As it essentially becomes another job or role within your organization, you’ll want to structure it as one, including a role description and compensation structure that is equitable across all ERGs. You will be more successful if the strategy of the group is clear, and in line with the company’s DEI goals and the core purpose of your ERG program.

In addition to monetary compensation, some companies choose to reward their ERG leaders by allowing them to donate to a cause of their choice.  You could also choose to reward the ERG’s leadership team as a whole, by providing a grant or donation to support an organization of their choice. 

When offering monetary compensation to ERG leaders, there will likely be increased focus on the impact of the ERG to help justify the spend. Here are some tips for how you can show the impact of your program:

  • Consider measuring the business impact by looking at talent development, an ERG’s ties to talent acquisition and recruitment, as well as employee engagement levels and retention of ERG members
  • Employee engagement surveys can yield valuable insights that can be leveraged in compensation exploration and in measuring the impacts of ERG leaders’ efforts
  • Tie any compensation justification to specific, measurable goals, and then measure progress against those goals throughout the year

Other perks and benefits

When financial compensation isn’t possible, there are many other ways to recognize ERG leaders for the work that they do. Many organizations reward their ERG leaders and committee members by formally acknowledging the work they do during year-end reviews. Consider arming your ERG leaders with a template that helps them track the skills they have developed to be shared with their manager for formal recognition. You may also be in a position to send feedback directly to the ERG leader’s manager to be incorporated into their annual performance reviews. 

It is also common to provide additional training and learning/professional development opportunities to ERG leaders.  Feel free to ask them if there are particular skills they want to develop, or training they may be interested in to tailor the experience for them. These could be internal or external opportunities such as industry conferences, or events that could be relevant to their ERG or their personal professional development that they can be encouraged to attend. 

Ensure ERG leaders receive exposure to the executive team and broader organization in the work that they do. Recognize ERG leaders in company newsletters or other company-wide communications or design ERG leader “badges” that they can leverage internally and on LinkedIn.

Invite your ERG leaders together regularly for a retreat or day of team-building. They can use this time to collaborate and connect. Similarly, if you have a company suite at an athletic/concert venue, offer it to your ERG leaders for an evening out to celebrate their accomplishments and hard work! You could also consider offering a mentorship program specifically for ERG leaders from senior leaders within the organization, or establish the opportunity for other ERG leaders to mentor one another. This could be especially beneficial if ERG leaders work within term limits and have to formalize their handoff from one leader to another who may be less experienced or new to the organization.

Preventing Burnout 

No matter how you choose to recognize your ERG leaders, preventing burnout amongst these leaders is crucial to ensure a healthy ERG program. Take a look at your organization's ERG strategy as a whole and consider if establishing a recruitment pipeline for future ERG leaders would be a fit for you. Setting terms for leadership (recommended 1 to 2 years) will allow leaders to develop their skills and build some formality into the pipeline. If possible, coach your ERG leaders on delegation and succession planning to help identify future leaders in their ERGs and keep that recruitment pipeline healthy. 

As your ERGs grow,  help to formalize their structure and roles to provide clarity while reducing burnout and turnover. Without a defined structure, group members are more likely to take a passive role waiting on the ERG leader to drive all functions leading to issues with engagement. Ensuring that there are co-leads, committee members, as well as support roles such as Secretary, Treasurer, and someone in charge of Communications, will help to spread the work across multiple team members. In the same vein, encourage ERG leaders to narrow down group priorities and focus on fewer, but more impactful, initiatives rather than trying to do too much. You can encourage your ERG leaders to plan activities and events annually to help reduce the amount of work they need to do. The recognition that ERG leaders may be at risk of burnout is an important one, and steps to avoid that burnout should be taken whenever possible. 

In managing an Employee Resource Group, it's vital to recognize the significant workload ERG leaders undertake alongside their regular job responsibilities. Providing clear structure and expectations for ERG leaders is paramount to prevent burnout and ensure the success of the program. By prioritizing the well-being and recognition of ERG leaders, organizations can foster a culture of engagement and inclusivity within their ERG programs, ensuring their overall success.

Was this article helpful?
0 out of 0 found this helpful

Articles in this section

Announcements
Stay up-to-date on what's happening at Benevity.