New report finds employee resource groups are abundant, but funding is not

Employee resource groups (ERGs) aren’t new, but they’ve gained traction as an idea in recent years thanks to increased conversation around DE&I. Participation in ERGs can increase employee engagement, according to some research, and improve employee inclusion. However, ERGs still face hurdles with lack of funding and even proper staffing, according to a new survey.

In May, The Rise Journey, a DE&I consulting group, published its third annual report on the State of the ERG. The 2022 report examines the role of ERGs within organizations, how they’re funded, who participates, and how leaders are compensated.

The report surveyed around 187 people across the US, and found that the most common ERGs are focused on serving the LGBTQ+, Black, women, AAPI, and Latine/Hispanic communities.

Staffing. Thirty percent of ERGs are not supported by a full-time DE&I employee, and only 9% of organizations employ a full-time diversity professional at the EVP or C-suite level. The Rise Journey found that companies with 11–50 employees are as likely to have a dedicated DE&I committee as a company with 501–1,000 employees.

Money talks. One of the biggest discrepancies between organizations of different sizes was how groups were funded. Larger organizations were more likely to fund ERGs, but overall, around one in five (21%) ERGs were operating with zero budget. Another 17% had a budget of $5,000–$10,000.

Furthermore, employees that donate their time leading ERGs frequently aren’t paid or recognized in performance evaluations for their extra work. Just 24% of ERG leaders say they are financially rewarded, while others are compensated in other ways, including gift cards, stock options, and professional development opportunities. However, compensation is on the rise: up to 46% from just 6% in 2020.

Measurement. The Rise Journey found that measuring the impact of ERGs can be difficult, but is important to prove ROI to the company. Less than one-third of respondents reported measuring ERG impact in engagement surveys, and 65% say they don’t measure how the groups influence retention rate. The report recommended that HR add questions about affinity groups to existing employee engagement surveys.