More and more companies are paying their ERG chiefs—Here’s how they compensate these informal leaders

Employee resource groups (ERGs) can be wildly powerful tools for companies. These groups, which connect employees of similar interests or backgrounds, often offer support to these workers, and an additional sense of belonging. They can also be leveraged by company leadership to get more insight into how workers are feeling, and used to help influence the company’s business strategy.

But they can only make an impact if they’re taken seriously by the organization and given the required resources and agency. One huge part of how influential an ERG can be is how its leaders are rewarded for their work. Without the time and help required to lead an affinity group, these leaders—often just a single non-executive employee—work for the ERG in their spare time on top of their daily job duties.

More and more companies are recognizing that helming an ERG is a job in and of itself, and compensating these leaders accordingly.

There’s no specific way to pay an ERG leader, but to get a sense of what options are out there, Fortune spoke with executives and ERG chiefs at three different companies about their approaches to compensating the heads of their affinity groups.

Here’s what they had to say.

Autodesk

ERG leader compensation: $10,000 annually

Software company Autodesk has launched nine ERGs total, and more than 4,000 employees participate in at least one affinity group. Since 2021, ERG leaders and co-leads have received an annual bonus of $10,000 for their duties. They are nominated and interviewed for the role, and must be in good standing with their manager to take on the additional responsibilities.

All new ERG leads meet with the outgoing leader to start planning the group’s strategy for next year, and regularly meet with the ERG’s executive sponsor, Autodesk’s chief people officer, other executives. They also have access to specialized training like crisis management and response. While there is no specific amount of time given to ERG leaders to oversee their group, their managers understand they have other responsibilities to handle during working hours.

Since Autodesk started paying its ERG leaders, the company has launched two more affinity groups, and ERG membership overall has grown by 50%. The company says ERG members also report higher levels of engagement, saying they feel a greater sense of belonging and connection than non-members. The groups and their leaders also help influence internal policy at Autodesk, including benefits, communications best practices, and office design. For example, Autodesk’s Portland, Ore. office created sensory-friendly workspaces in partnership with the MIND Network, its ERG for neurodivergent employees, workers with mental health struggles, and other workers with disabilities.

“I see ERGs as a part, if not extension of, my team and our ability to scale what it means to belong at Autodesk,” says Maxim Williams, Autodesk’s vice president of culture, diversity, and belonging, who leads the company’s diversity and belonging team. “It's not just volunteer work, it's not something that is extra. It is actually helping our company or employer experience, people's sense of career mobility, their opportunities to demonstrate leadership, but also from an employer brand perspective.”

Allstate

ERG leader compensation: Company time

Allstate does not compensate affinity group leaders in addition to their salary. Instead, leaders allocate at least 25% of their day-to-day work to their affinity group leadership responsibilities, meaning these responsibilities are counted as part of their salary rather than volunteer work in their own time.

The insurance giant has nine affinity groups—called “employee impact groups” (EIGs) internally—across its global workforce, totaling more than 8,000 members. Each EIG is led by one chair and four cochairs, who all integrate their leadership duties into their day-to-day responsibilities. Allstate added additional co-chair roles this year after EIGs requested more support. It also established a system of formal job titles and responsibilities for EIG leaders.

EIG leaders get a $10,000 budget for their groups, and are paired with executive sponsors they meet with monthly. Allstate says its decision to invest in group leaders has led to a greater engagement for employees who participate in ERGs. Members experience 37% lower turnover and 25% higher promotion rates than non-member employees.

Executives at Allstate realized that offering this greater support was tapping into an overlooked leadership development opportunity. It wasn’t enough to simply have affinity groups in place, the company also needed to bake a talent strategy into its EIGs.

“The past three years, we have really thought about: we have these amazing communities, these EIGs, and we want to bring more people along and create more development opportunities for employees,” says Olga Otero-Brown, a vice president and HR talent organization advisor at Allstate, and executive sponsor of Allstate’s NATIVE EIG.

Micron

ERG leader compensation: Stock units

Computer chip maker Micron has 10 ERGs, with a total of 187 chapter, regional, and global leaders. Since fall 2021, the company has given those leaders (after serving at least six months) restricted stock units (RSUs). The number of RSUs awarded varies based on the leader’s ranking within the affinity group, and the country in which they work.

ERG leaders collaborate with  executive sponsors, who offer guidance and help align them with Micron’s business strategy. All ERG members are allotted five hours per month to work on ERG-related activities, including participating in conferences for personal and professional growth.

April Arnzen, Micron’s chief people officer, says that paying ERG leaders helps improve recruitment and talent acquisition, as ERGs are often involved with onboarding new employees and helping them acclimate to their new job. They’ve also influenced the company’s policies and benefits. For example, Micron expanded its benefits offerings for LGBTQ+ workers and created a benefits guide specifically for that community, based on input from leaders at its PRIDE+Allies ERG.
“We believe our global, regional and chapter leaders play a vital role in fostering an inclusive and supportive workplace culture. They dedicate their time and energy to create safe spaces where team members from diverse backgrounds and their allies can connect, share experiences and receive support,” Arnzen tells Fortune. “This recognition validates the criticality of the work done by our ERG leaders to support Micron’s business goals and commitments around creating a culture of inclusion, as well as attracting and retaining talent.”

This story was originally featured on Fortune.com