That was the question I was mulling this week when I chatted to Jinan Younis, the founder of the WeCalibrate which helps organisations enhance their cultures through trust, inclusion and technology.

We sat down with a group of leaders of Employee Resource Groups (ERGs) from top UK businesses to ask what the opportunities and barriers are to leadership presented by their roles.

ERGs have become a significant part of the corporate ecosystem, helping to foster diversity, equity, and inclusion (DEI) within organisations. However, ours was part of a growing conversation about how ERG leadership is recognised and rewarded and the communication challenges ERG leaders face.

Here are some of the challenges we are hearing and some practical solutions on how to tackle them. Each comes back to the idea that the best communication starts with stopping talking, and listening.

Recognition and reward

What are we hearing? ERG leaders often receive informal rewards, such as verbal commendations or gift cards, but formal recognition and financial remuneration are less common. Although some companies offer compensation to global ERG leaders, this does not always extend to regional leads, creating a disparity in recognition. Fragmented responsibility for ERG reward — shared between HR, DEI teams, and local leadership — adds to the confusion.

What’s a solution? A cohesive strategy for recognizing ERG leadership across all levels is needed. Furthermore, many ERG leaders express a desire for general career coaching, as leadership in these groups often provides valuable skills but doesn’t always translate into formal career advancement.

Impact on career outcomes

What are we hearing? Serving in an ERG leadership role can provide soft rewards such as networking opportunities and skill-building. However, it rarely leads to hard rewards like bonuses or performance review enhancements. Balancing ERG responsibilities with regular job duties can also be a challenge, as each arrangement is often customised based on the relationship with one's line manager. ERG leaders sometimes face difficult situations where they must address unpopular issues with senior leadership, which can pose a risk to their career trajectory.

What’s a solution? By establishing clear policies for protecting ERG leaders' time, you will allow them to balance core responsibilities with ERG duties. And by training line managers on how to support ERG leaders and understand the value of their work will be a huge benefit to the organisation and the individual.

Leadership perception and organisational impact

What are we hearing? The value of ERG work to senior leadership often varies based on organisational priorities. While some leaders recognise the importance of ERGs, this recognition can diminish when other business priorities emerge. Demonstrating how ERG participation affects employee retention and organisational culture is crucial.

What’s a solution? It all comes back to the data. If you link ERG participation directly to business outcomes such as employee retention, engagement, and innovation, you will have an easier job convincing senior leadership that this is something essential to make business as usual better.

Pathway to leadership

What are we hearing? ERG leadership can be a stepping stone to more formal leadership roles, but its value as a talent incubator isn’t always fully recognised. Senior leadership sponsorship and support are essential for ERGs to drive structural change and for ERG leaders to navigate organisational complexities.

What’s a solution? Define a clear roadmap showing how ERG leadership can lead to executive roles, with a focus on skills development and sponsorship.

We know that our employees are crucial ambassadors for any company, representing its values both internally and externally. Given the vital role ERGs play in keeping employees engaged, motivated, and happy day to day, keeping their leaders engaged and happy is also crucial.