Silicon-rich and rare-earth-doped nitride materials are promising candidates for silicon-compatible photonic sources. This work investigates the thermal conductivity and photoluminescence (PL) of light emitting samples fabricated with a range of excess silicon concentrations and annealing temperatures using time-domain picosecond thermoreflectance and time-resolved photoluminescence. A direct correlation between the thermal conductivity and photoluminescence dynamics is demonstrated, as well as a significant reduction of thermal conductivity upon incorporation of erbium ions. These findings highlight the role of annealing and stoichiometry control in the optimization of light emitting microstructures suitable for the demonstration of efficient Si-compatible light sources based on the silicon nitride platform.