From Impact to Income: Advocating for Fair Compensation as an ERG Lead
Last year, we noticed a trend in our blog statistics: an article by Cultivate CEO Steve Garguilo, Paying for Priceless Work: A Case for Compensating ERG Leaders, quickly became one of our most popular posts. As people applied to join our community, many referenced the article and their need for more resources and support. The topic resonated with Cultivators, and we knew there was an opportunity to dive deeper.
Affinity groups or Employee Resource Groups (ERGs) and other workplace communities continue to grow in popularity. Indeed, a study on employee experience finds that 40% of companies surveyed had implemented ERGs, with a 9% increase in 2021 alone.
However, paying those leading these communities has yet to become the norm. Culture Amp found less than 5% of Fortune 500 companies pay ERG leaders. In an article for Fast Company, researchers found that less than 30% of the respondents received compensation for leading an ERG at their companies.
This scenario remains true today despite ERGs having demonstrably positive outcomes for organizations and their employees, including improved retention, culture building, and leadership development within organizations.
For example, at T-Mobile, "Employees can participate in any of…six Employee Network Groups (ENGs) — Access for Disabilities, Veterans and Allies, Multicultural, Multigenerational, Pride & Allies and Women's Leadership — and 53 local D&I chapters around the country. In 2017, retention rates were significantly higher among employees who actively participated in [the] D&I network." Retention is significant for organizations, with the cost of replacing an employee ranging from one-half to two times the employee's annual salary, according to Gallup.
“It's essential to recognize that ERGs are often created by and for employees with underrepresented identities.”
As Steve said in our first article about paying ERG leaders, "This means companies are asking already underpaid minority employees to do extra work without improving compensation."These employees are already more likely to be impacted by wage gaps based on their caregiver status, disability status, gender, race, sexuality, and other identities*. Add the responsibility to lead affinity groups on top of their official duties; these folks are paid even less for this critical work.
But how do you advocate for fair compensation as an ERG leader?
A Step-by-Step Guide to Negotiating Pay
Your work as an ERG lead is important, and you deserve compensation for it.
With that in mind, we wanted to build on our last article by providing you with advice, tips, and a step-by-step guide to asking for a compensation increase and other tangible support as an ERG lead:
Step 1: Write Up a JD
Start by cataloging in writing the tasks, skills, competencies, and experience you bring as an ERG lead. Listing this information lets you get clear on what you do. It also provides a tool for leadership to understand your responsibilities.
Try writing out answers to the following questions as a starting point:
What is required of you right now?
How many hours of the average week do you spend on ERG-related duties?
What kinds of tasks and responsibilities will you be taking on over the next year or your term as lead?
What outcomes are you responsible for?
Elizabeth Carter, VP of Clinical Strategy and Business Operations at Highmark Health, who has experience in this area, speaks to the importance of creating clear goals for your role as a community lead, even if no one is asking you to.
Step 2: Do Your Research
Before you know what to ask for, it helps to know about industry norms. Research companies that are compensating their ERG leads in various ways.
Here are some places to start:
Be sure to research different forms of compensation.
“Sometimes, the pay comes in the form of the company investing in you as a leader and providing opportunities for professional growth and skills development.”
Maceo Owens, CEO and ERG Program Developer at The ERG Movement and a former Program Manager at OpenTable and KAYAK, is planning the first in-person conference for their global ERG leads at the time of writing. Due to timezone differences, it can be difficult for ERG leads to connect and learn from each other. The company has decided to bring all their community leaders to Denver in 2023 to support their growth, show appreciation, and grow their sense of internal community.
Step 3: Get Clear on Your Ask
Knowing your boundaries and what feels fair to you is extremely helpful in framing your ask and negotiating.
One ERG lead I spoke to shared that at her organization: "ERG leads are compensated in a couple of ways. There are awards given annually…the winners are awarded a cash bonus (in my case, it was 2.5% of my salary after tax). Also, I have found that ERG leads are often selected for company-paid conferences and leadership development programs. These are perks, but they are not fully paid positions…I do know that Manager support is key. Some managers will incorporate ERG work into the performance review criteria. So it could be 20% of your "work" is expected to be ERG work. That, I think, is a step closer to making it paid."
Think about your answers to the following questions as you work on framing and refining your specific ask:
What kind of compensation are you looking for?
Is there a range that you’d be comfortable saying “yes” to?
Are there other forms of compensation you might be open to (additional paid vacation time, a robust professional development budget, a budget for your ERG itself)?
Step 4: Show Your Impact
Be prepared to show your ERG's impact at present and project how it will benefit your organization in the future.
There are several ways to do this: you may gather data by surveying your ERG members, collecting and sharing testimonials (with consent!) from members, and tying your impact--which ideally includes the financial aspect--to business outcomes.
On that third point, we will be frank with you: It sucks to have to "prove" that your meaningful work is…well, meaningful. That said, showing the financial impact of your ERG is one of the most straightforward ways to demonstrate the value of what you're doing.
Considering these questions as you consider how to frame that type of impact:
How much has employee retention saved the company?
Has your product line reached a new market due to ERG input?
What metrics does your company care about the most? Start by looking at what your company cares about, that top-line bug hero metric, and work backward to consider how you and your ERG impact it now and how you might impact it in the future.
Bonus Tips: Be mindful of your context & other strategies you can apply to achieve your goal
Some additional things to keep in mind throughout this process:
Organizational Context Matters: In our conversation, Maceo spoke about the importance of context. While stories of $10,000 pay increases are wonderful, Maceo cautions that at many companies, that is more than the budget for the entire ERG program. When seeking funding, she says that coordinating with your executive sponsor is key, as is being willing to start small. In her experience, an annual $1,000 ERG budget can go far if you thoughtfully consider how you will spend it.
Do you know when your company determines their yearly budget? Has your company recently experienced a round of layoffs? Knowing what is going on financially for your company and when budgets are being set and decided can help move your request forward at the right time. It also sets your leaders up to be able to support you.
Your Context Matters Too: To that end, consider the social factors impacting you as an ERG lead that could contribute to compensation. Things like rising inflation and social or political happenings that affect the amount of labor you have done as an ERG are worth bringing into the picture. Christie Lindor touches on her experience of this in this article, discussing the additional emotional labor and program planning she experienced while running an ERG in the wake of Trayvon Martin's death.
Seek Leadership Buy-In: If your ERG has an executive sponsor, are they someone who might support you in this initiative? Once you have your JD, research, and business impact case, consider speaking to your executive sponsor or a leader you trust for feedback and support. If you don't have support from leadership, it may be helpful to build grassroots support (more on that in the next bullet point!).
Team Up: As an ERG lead, you know that community is a powerful force for change. Consider coordinating your efforts with other ERG leads at your organization. This will allow you to make a more coordinated ask and build solidarity between individuals doing this vital work. At the very least, you will have a community and their encouragement as you move through this process.
One ERG lead, who asked to remain anonymous, leveraged the collective power of ERGs in their organization to bring about pay for all. As one ERG lead said, "The most important aspect was having a small dedicated group of folks who have an honest and thoughtful debate about what was needed and who we were working to serve, and then presenting this and getting buy-in from senior business leaders." We couldn't have said it any better.
Our bottom line? ERG work is valuable, and it should be valued.
Want additional tools, tips, and support as you navigate your negotiation process? Need a hype crew to cheer you on? Join us in the Cultivators Community.
Let us help you make impactful and engaging workplace communities! Check out our Employee Resource Group Toolkit.
Note: Wage gaps and other forms of inequity are compounded the more identities you hold. Check out our four-part blog series to learn more about this intersectional lens.
