How employee resource groups can fulfill their original promise

Since their inception in 1968, employee resource groups have become a cornerstone of corporate diversity, equity and inclusion efforts. Despite the integral role they now play in more than 90% of Fortune 500 companies, many ERGs still face challenges in recognition, compensation and influence within their organizations. These challenges will only become more pronounced as DEI backlash increases across the federal and private sectors, putting the work of ERGs at risk. For companies still committed to supporting the work of ERGs, what strategies should they use to support them? Are these groups still worth the investment in a rapidly changing corporate landscape? To find those answers, recognizing the challenges these groups and their leaders currently face is a necessary starting point. NextGen Marketing Summit Join us for a crash course on Gen Z, DTC marketing and the creator economy Register today A lack of recognition and compensation ERGs provide essential support for their members, often serving as safe spaces for dialogue and growth across a range of different demographic groups. They have frequently been cited as the driving force behind improved workplace conditions for general staff. Yet many ERG leaders operate without recognition or compensation, despite their often immense contributions. A 2020 study from The Rise Journey showed that nearly a quarter of ERG leaders contribute up to five hours of work weekly on top of their full-time responsibilities. Ironically, this burden often falls on the very individuals ERGs were designed to support, with 80% of ERG leaders being women, many of whom are women of color. Addressing these challenges requires a multifaceted approach that recognizes the value of ERGs and provides them with the resources they need to thrive. A few strategies any company can enact include: Mentorship ERG leaders should have access to a senior-level sponsor who can serve as a voice for their community within the organization. Regular check-ins between ERG leaders and their executive sponsors, such as bi-weekly or monthly meetings, can ensure ongoing support and guidance. Fair compensation Compensation for ERG leaders can take various forms. For example, spot bonus payments or official time allocations for ERG leadership roles can provide tangible recognition of their contributions. Spot bonus payments will vary by organization, but usually $500-$2,500 annually per ERG lead, depending on group and company size, is a good place to start. Companies should be transparent about the compensation process and ensure it reflects the level of commitment and effort required by ERG leaders. Policy influence ERGs can play a significant role in shaping company policies that reflect the needs of their communities. To ensure this, companies could establish formal channels for ERGs to provide input on policy decisions, such as regular consultation meetings or representation on decision-making committees. Gen Z Career Forum Get practical advice on launching your career and excelling in the industry Register today Professional development ERGs should also be venues for their members' growth. Offering leadership training or education on topics such as emotional intelligence or time management could be part of the ERGs offerings. Visibility Regularly spotlighting the work of ERGs in company-wide communications can raise their profile and ensure their efforts are seen and appreciated by the wider organization. What do ERGs in action look like? To provide a clearer picture of the impact of ERGs, let's imagine a typical year in an ERG focused on gender equality. In January, the group might kick off with a strategic planning meeting to outline their objectives for the year. In March, a panel discussion or workshop for International Women’s Day aimed to empower and educate staff could supplement events designed exclusively for members, such as an ERG social. Super Bowl ad review The best and worst commercials from the Big Game Click here Throughout the year, the ERG might run a mentoring program, pairing junior employees with senior mentors. In June, the ERG could conduct a survey to gather input on the company's parental leave policies, leading to policy recommendations delivered to HR in July. As Q4 approaches, the group could focus on ways of ensuring a healthy work-life balance for parents as the holiday season approaches. In December, making a charity drive for a nonprofit organization that supports educating high school girls in STEM fields could be an altruistic way to close out the year and foster community among members. ERGs and the current DEI landscape ERGs have come a long way since they were first founded at Xerox in 1971 as a way of addressing racial inequality. While diversity, equity and inclusion initiatives face unprecedented pushback, ERGs continue to be a driving force for good that advocates for staff across a myriad of backgrounds. It's more important than ever for businesses to recognize the value of these groups and take concrete steps to nourish and empower them. Ad Age Best Places to Work 2025 50 companies doing a standout job See the full list here

How employee resource groups can fulfill their original promise

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