As DE&I initiatives have come under attack by some conservative activists over the last two years, employee resource groups (ERGs) have also faced scrutiny. However, a new report suggests that companies are still investing in ERGs and DE&I committees.
The Rise Journey, an ERG consultancy, recently released its fourth annual State of the ERG report, examining how companies deploy ERGs and compensate their leads.
The 2023 report combined qualitative and quantitative analyses from 239 organizations. The majority of the organizations (69%) were headquartered or have their largest office in the US; 43% have more than 1,000 employees, while almost one-quarter have 100–500 employees and the remainder fall in between.
Despite the recent politicization of DE&I initiatives, 44% of organizations reported having a dedicated DE&I professional, 12% of whom are VP-level or above, a 3% increase from 2022. Similar to the previous year, most companies with fewer than 250 employees reported not having a dedicated DE&I professional, while larger companies tended to have more support and budget.
Commitment to committees. The report recommended that companies establish a DE&I committee, a group of employees usually formed before ERGs that is dedicated to making cultural changes within an organization. Some 67% of organizations said they have a DE&I committee, and 61% of those committees have more than 10 employees. DE&I committees are ideally funded by their organizations, but the report found that a quarter do not have any budget. On the other hand, 29% surveyed had “more than $10,000.”
The report recommended that senior leaders participate in committees to promote continued DE&I support. For example, at Jobs for the Future, a nonprofit that helps prepare the workforce for new jobs, the CEO is a sponsor and member of the DE&I committee. “The first DE&I committee cohort advised on strategic DE&I initiatives and policy updates, with its outcomes including the implementation of formal ERGs, a gender inclusiveness education initiative, and alignment of our talent acquisition materials to be more inclusive,” Marina Tavares, senior manager of equity and belonging at Jobs for the Future, said in a statement.
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Investing in ERGs. Some 89% of companies had an LGBTQ+ ERG in 2023, a 16% increase from 2022. ERGs for women and Black or African employees saw a roughly 5% increase, to 75% and 56% from 69% and 51%, respectively. Meanwhile, the number of disability ERGs increased by 18%, to 39% from 21%. The AAPI community was the only one that saw a dip in ERG representation, from 57% to 45%.
The report recommends that companies only create ERGs that employees are interested in, and that represent their workforces. It goes on to say that employers should ensure each group has at least one lead, and that those workers are compensated for their time. Some 46% of leads dedicated at least three hours a week to their ERG in 2023, up from 37% the year prior. But fewer were compensated: Just 41% of organizations paid their leads last year, down from 43%. Compensation varies as well, from annual stipends, to bonuses, gift cards, and less tangible benefits, including professional development and mentorship opportunities.
Glassdoor is one company that provides monetary compensation to its leads. The company conducted market research and partnered with its ERG program manager, consulting partner, and chief people officer to determine the exact compensation.
Despite the decline in compensation, it appears that many organizations are growing their overall ERG budgets: 28% of companies had an ERG budget of $20,000–$50,000 in 2023, a 22% increase.
Regardless of budgetary restrictions, the report emphasized the importance of setting goals that are “clear, transparent, and recorded,” which more companies are doing (64% in 2023 versus 53% in 2022). While measuring the true impact of ERGs continues to be a difficult task, the report noted engagement metrics that companies can look to for guidance, with the most important being members’ meeting attendance and participation, workforce participation, event and programming attendance, and goals achievement.