Effective ERGs: Understanding The Role of the ERG Executive Sponsor

Employee Resource Groups (ERGs) have continued to emerge as powerful drivers of change within organizations. Over the last few years, more companies have established or started the process of establishing the groups as ERGs continue to evolve as a key part of the future of a democratized DEI at work system. Establishing ERGs is, however, only the first step. Although ERGs are highly supported by employees, a large percentage of employees still agree that leadership support is critical for the groups to be effective. Central to the success of ERGs is the people strategy , and one of the key strategic roles is the Executive Sponsor.?

A recent study shows that while the overall sentiments from leaders still indicate a desire for change, fewer organizations have a strategy to drive action, less investment in DEI initiatives, and a reduction in DEI leader roles. The ERG Executive sponsor role is a powerful avenue to drive real changes in the workplace. In this edition, we delve into the significance of the ERG Executive Sponsor role, addressing common questions on their selection as ERG sponsors and defining the opportunities within the workplace.

Essential Qualities for a Highly Effective Executive Sponsor

• Visionary Leadership: ERG Executive Sponsors are leaders who champion the group’s mission and advocate for its goals at the executive level. An executive sponsor is, therefore, someone familiar with and aligned with the ERG vision and can guide and align their strategic vision and ERG objectives with the broader organizational values and strategy that might not be apparent to all employees.
• Influence and Power: Executive Sponsors have a certain level of influence within the organization and use their influence to break down barriers and promote inclusivity within the organization. Part of scaling change with DEI initiatives is engaging leaders without a “DEI Title.” Executive Sponsors are embedded into the business; they have enough leverage in the organization that attending or amplifying the DEI initiatives provides a huge advantage.
• Time Commitment: Depending on the level of maturity of the ERGs, the time commitment required from the ERG Executive Sponsors can vary. However, the Executive sponsors served as mentors for the ERG leaders and are available to provide insights and guidance for the leadership team as well. Therefore, a certain level of time commitment will be required.

Based on these qualities, here are three key criteria to look for when Choosing Executive Sponsors for Your ERGs:

1. Alignment with ERG Goals: When the Executive Sponsor shares a vision for success with the ERG, it fosters a sense of unity and purpose. This alignment ensures that the sponsor’s efforts are directed towards initiatives that are beneficial for the ERG and aligned with the broader organizational objectives. It’s a win-win!
2. Influence and Advocacy: Executive Sponsors should have influence within the organization and a willingness to use it to benefit the ERG. Leaders with a genuine commitment and who also have the title, visibility, and organizational power can successfully advocate for the ERG at the executive level to help overcome barriers, secure resources, and ultimately drive systemic change.
3. Genuine Commitment: Look for high-level leaders who are committed to DEI and have a track record of supporting such initiatives within the organization, in the industry, or in the community. Leaders with a genuine commitment are more likely to push against the norms in advocating for meaningful changes, making them effective champions for the ERG’s mission.

Here are answers to some Frequently Asked Questions (FAQs) on Executive Sponsors:

1. Do we need Executive Sponsors??

Absolutely! Launching ERGs for the first time or further along on your ERG journey, having an executive leader invested in the group's success is critical. Companies with visible and active sponsors reported higher levels of advancement for underrepresented employees. Organizations with effective executive sponsorship for ERGs are engaging more employees, increasing their attraction and retention rates, and creating a more inclusive workplace culture. However, choosing the right executive sponsor for the represented groups is important to realize the vision.?

2. How many Executive Sponsors do we need?

The number depends on the size and complexity of your organization. I would say that having at least one Executive Sponsor per ERG would be best to ensure dedicated support. However, larger organizations or those with multiple ERGs might benefit from multiple sponsors, each aligned with specific groups, and also to relieve the time commitment required from just one sponsor to 2–3 sponsors. The key is to ensure that each ERG has the support it needs.

3. How do we select the right Executive Sponsors?

Choosing the right Executive Sponsor is crucial. Look for leaders with a genuine commitment to diversity and inclusion, a track record of advocacy, and influence within the organization. A Harvard Business Review study found that sponsors who are personally committed to the cause are more effective in driving positive change.

4. What is the “right” term limit for Executive Sponsors?

While there’s no one-size-fits-all answer, it’s advisable to have a term limit to encourage fresh perspectives. A common practice is a term of two to three years, allowing for continuity while also providing opportunities for new leaders to step into the role. Regular evaluations can help determine whether a reappointment or change is necessary for ERG sponsorship.

5. How do ERG leaders engage effectively with the Executive Sponsor(s)?

Engagement is key to a successful and collaborative partnership. Engaged sponsors contribute significantly to the success and sustainability of ERGs. Effective collaboration begins with clear communication and shared goals. ERG leaders should establish a cadence and format to update sponsors on ERG activities regularly, seek their input on key decisions, and involve them in strategic planning. Schedule periodic check-ins to update the sponsor on ERG activities and milestones. Additionally, involve sponsors in key events, ensuring their visibility and active participation. A collaborative approach fosters a strong, lasting, and effective partnership.

6. How can Executive Sponsors measure their impact?

Like project sponsors , ERG executive sponsors also need a way to assess their impact. Depending on the ERG stage, the ERG sponsors must establish clear goals aligned with the ERG’s objectives and track their progress and impact. Key performance indicators (KPIs) might include increased ERG membership, measurable diversity and inclusion outcomes, and employee feedback. Regular assessments of data and feedback loops help sponsors refine their strategies for support to maximize their effectiveness for the ERGs.

7. What role does an Executive Sponsor play in driving organizational change?

Executive Sponsors are instrumental in driving organizational change by advocating for ERG initiatives at the executive level. They can influence policies, promote diversity in leadership, and contribute to a more inclusive workplace culture. According to McKinsey, organizations with diverse leadership teams are more likely to outperform their peers. This only happens if the leaders are isolated at the top and engaging downwards. This is the impact that the ERG executive role can bring to the business initiatives?—?the voice of different groups and the needs that should be driving changes and product design.

8. How do you deal with an “unavailable” Executive Sponsor?

First, it is important to have some guidance document at the start that outlines the role expectations for an executive sponsor. However, If an Executive Sponsor becomes unavailable due to role changes or other commitments, it’s essential to have a succession plan in place and have the conversation around an established check—in period (At the end of each term year, for example). Ensure a smooth transition by identifying a replacement or having a designated interim sponsor. This ensures that the ERG continues to receive the support it needs without disruption.?

9. We don’t have an official DEI Team. Can we still have Executive Sponsors?

Absolutely!. Even without an official Diversity, Equity, and Inclusion (DEI) team, having ERG Executive Sponsors is a strategic imperative for fostering a culture of diversity and inclusion within your organization. These sponsors are catalysts for change, leveraging their influence to champion inclusive initiatives at the highest levels. By appointing ERG Executive Sponsors, you 1) empower grassroots efforts and 2) ensure that diversity and inclusion become integral to the organizational fabric. Their impact can kickstart a cultural transformation, laying the foundation for a workplace where diversity is not just encouraged but celebrated, even without a dedicated DEI team, so when the organization is ready to build more support, they have champions and allies who are paving the way.

Conclusion: As ERGs continue to play a pivotal role in shaping inclusive workplace cultures within organizations of different sizes, the significant role of the Executive Sponsors becomes even more critical.?

Executive Sponsors have a dual role that extends downwards (coaching, mentoring, and providing program guidance for the ERG leaders and members) and upwards (informing, championing, advocacy, bridging connections, and more at the organization leadership level).?

By carefully selecting the right sponsors, defining their roles, and learning from emerging trends, organizations can unlock the full potential of ERGs to address their organization- critical areas and align to the business goals, driving positive change and fostering a workplace that celebrates diversity and inclusion.

The ERG executive Sponsor is actively building bridges, as well as removing barriers for the ERG and the represented group within the organization.?

Lastly, the ERG Executive Sponsor is best positioned to champion celebrating success for the leader’s effort and raising the group’s awareness. Celebrating ERG achievements can help reinforce a culture of appreciation and recognition across the organization.

• Are you looking for DEI or ERG launch support for your organization? Learn more about how EQImindset LLC can help. Book a Discovery Call
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