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Déjà Leonard is a copywriter and freelance journalist based in Calgary.
Employee resource groups (ERGs) are voluntary, employee-led groups that work to create a more diverse and inclusive workplace while building a stronger overall culture. For example, many companies have ERGs for women in tech, Black employees, LGBTQ+ employees and more.
In Sequoia’s 2021 Employee Experience Benchmarking Report, 40 per cent of companies reported having employee resource groups in 2021, a nine per cent increase from the year before. Also, seven per cent of companies have rolled out new diversity, equity and inclusion (DEI) programming during 2020-2021 to create a more inclusive culture.
During this time, the social justice reckoning of 2020 put many ERGs centre stage within companies, taking on even more volunteer work such as helping educate employees internally, crafting public statements and helping with DEI strategies.
However, more work and higher expectations didn’t necessarily mean more – or any – pay.
Exacerbating that issue further, is the fact that many ERG members are women or other minorities, who historically are paid less than their peers.
More companies are looking at pay
The Rise Journey’s 2021 State of the ERG Report states that in 2020, only 6 per cent of survey respondents indicated their organizations compensated ERG leads. In 2021, the percentage rose to 28.
Of those who said they don’t compensate ERG leads, 48 per cent said their organization was currently discussing ways to compensate their leads – up 24 per cent from 2020.
While these numbers are promising, there is still work to do and it can be hard to know there to start.
How to create a compensation structure
The report shares that some of the most common ways companies are supporting ERGs are through stipends, bonuses and quarterly rewards. It’s noted that when rewards are tied to company results, instead of ERG-specific results, rewarding people for their impact can be more challenging.
Justworks, an HR technology company, publicly shares how they compensate ERG leads with cash, additional stock options, budget for external participation in ERG conferences, access to management coaching and formal mentorship. They also have formal reviews on ERG performance.
If you’re not sure where to start, the 2021 State of ERG Report suggests compensating at minimum for five hours per week, at $15 per hour, with a quarterly payout plan.
As the role of ERGs continues to rise in importance – both internally and publicly – so will the need for a fair, structured way to reward and support these key employees.
What I’m reading around the web
- There’s been plenty of talk around normalizing career breaks, and this article in Forbes outlines how you can actually make it happen – and return to work with confidence when the time is right.
- Data shows that twice as many women as men say they would quit their jobs if they were asked to return to the office five days a week. This Wall Street Journal article shares how embracing flexibility could backfire on women in particular when it comes to potential career progression.
- If you live in a Canadian city that’s built for cars, this article from The Sprawl about walking to school might resonate. It goes into the benefits of walking, how cars can be a safety hazard for kids and how students are coming up with their own solutions to the challenge.
- Depending on your role and the size of your organization, you might still be scheduling interviews manually, and that can mean tons of emails, screening assignments, time zone issues and more. Here’s how automation tools can help companies keep up in a tight labour market.
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