Employee Resource Groups (ERGs): Best Practices
Employee Resource Groups (ERGs) are transforming workplaces into spaces where everyone can thrive. These employee-led initiatives not only enhance inclusion and belonging, but also empower individuals to drive meaningful change within their organizations.
In this article, we will examine:
What are Employee Resource Groups (ERGs)?
An Employee Resource Group (ERG) is a voluntary, employee-led group that aims to foster a diverse, inclusive workplace aligned with the organization's mission, values, goals, business practices, and objectives. ERGs are usually formed around common interests, backgrounds, or demographic factors such as gender, ethnicity, religious affiliation, lifestyle, or career path.
These groups provide support, advocacy, education, mentoring, and networking opportunities to their members. They play a crucial role in building a sense of community and belonging among employees, serving as a bridge between diverse employee populations and organizational leadership.
ERGs not only benefit their members but also the organization as a whole. They can offer insights into diverse markets, help with the recruitment and retention of top talent, and enhance employee engagement and productivity by promoting an inclusive culture.
By encouraging understanding and collaboration across different groups, ERGs contribute to the development of policies and practices that benefit all employees. They can also play a significant role in community outreach and corporate social responsibility initiatives, enhancing the company's reputation and its ability to attract a diverse workforce.
How ERGs Have Impacted the Modern Workplace
It was not that long ago that employers would not hire someone of a certain race, ethnicity, sexual orientation, or any other marginalized group.
These groups had a very limited path to challenge these institutions on their systems during those times. Ultimately, many found that they just accepted that this was how things worked and hoped to find a business to take them in.
Most people no longer accept this reality. Businesses are increasingly becoming more diverse and inclusive as we are now striving write a new chapter. This desire for diversity and inclusion is thanks to years of campaigning by representatives of these various groups, which has helped change public attitudes.
💡DID YOU KNOW: 86% of Gen Z expect a business to have an ERG.
7 Core Objectives of an ERG
All ERGs are different in makeup and based their objectives on what is currently lacking in the workplace. However, there are common themes they all seek to accomplish. Here are the foundational objectives for every ERG:
#1: Support and Networking
These groups help provide a safe zone for their members. They act as a support line if members encounter troubles or issues inside or outside the workplace. In addition, they allow members to connect and build friendships and potentially professional relationships.
#2: Advocacy and Representation
Different groups will sometimes require different needs. ERGs work as a soundboard for these groups to get their priorities into the rooms of the people in charge by participating amongst the higher-ups in making decisions and ensuring their desires are heard.
#3: Professional Development
One of these groups' top priorities is helping their members navigate the workplace. Close to 59% of workers believe training helps them improve their work performance. ERGs use workshops or coaches to help build America's future leaders.
#4: Cultural Awareness and Education
Many people are only aware of their issues and their own people's history. The problem occurs when they work with people of different backgrounds and are not fully cognizant of their history and what is acceptable and not acceptable. ERGs attempt to bridge that gap by educating the workplace by providing educational events or initiatives that highlight diverse perspectives and experiences.
#5: Employee Engagement
When a group feels its desires or concerns get pushed aside, this can lead to lower participation. With ERGs working to address this group's concerns and desires, they will be more motivated and, thus, more productive for the company. Companies with a diverse workforce are 35% more likely to have higher financial benefits than their non-diverse counterparts.
#6: Recruitment and Retention
Around 78% of people say that working in a diverse and inclusive environment is vital to them. ERGs help create that environment, thus attracting new talent and helping to retain them by maintaining that diverse and inclusive work culture.
#7: Structural Policy Changes
Workers organize or join an ERG to help bring change to the workplace. Certain groups have specific objectives, and ERGs help voice those objectives. For example, one survey found that 55% of women stated that their women resource group helped to improve parental leave benefits.
How to Start an Employee Resource Group in 6 Steps
💡DID YOU KNOW: ERGs are now present in 90% of Fortune 500 companies!
Here’s how you can get your ERG started today:
First - Identify a Need
For an ERG to be successful, there has to be a need for it. Up to 56% of workers believe DEI initiatives suit a company. There is a desire for ERG, but the organizer must ensure a practical need for the group's existence.
Second - Build a Team
A team includes the leader and the people underneath the leader. Find reliable, talented individuals with the expertise and drive to help the group flourish.
Third - Develop a Charter
Clearly outline the group's values. Also, to gain the ear of a company's executive leadership, include how the ERG benefits the company.
Fourth - Recruit Members
A group's legitimacy gets tied to how many people follow it. Use social media, emails, and events to drive up membership. Show the workforce what they stand to gain by joining your group.
Fifth - Hold an Inaugural Meeting
Emails and social media announcements are good ways to drive membership. But once you have a solid footing with your groups, organize an inaugural meeting. This meeting will help answer any further questions your members or non-members may have and comprehensively explain what your group is and why it should exist.
Sixth - Continuous Improvement
As the years go by, new problems will occur, requiring the group to change. Whether the company's leadership changes, you now have to work with a new leader, or there are new requirements from the members. ERGs need to be flexible and understand new dynamics when they occur.
Best Practices for Employee Resource Groups
ERGs, like a union or after-school program, must have specific policies to succeed. Its effective policies and structures will help attract more people. Some of the best practices for running a successful ERG are:
✅Set a Leadership and Governance Structure
People will follow leadership that they believe in and who are welcoming. The governance structure must also be so that members feel their voices can be heard even in a group of a thousand members.
✅Have a Set Focus
While every ERG must be welcoming to people of all backgrounds, there should be a focus that is not too narrow (an ERG of one person isn’t really a “group”) or too broad (an ERG with every employee is more like an all-hands meeting).
✅Look for Collaboration and Partnership
An ERG cannot invoke change alone. It should seek cooperation with other ERGs and executive leadership. These partnerships help develop a strategy and work closer with the leadership to leverage the group's initiatives.
✅Maintain Regular Communication
A point of emphasis should be engaging with the group members and keeping them informed about the group's decisions. This communication could be through WhatsApp groups, consistent meetings, or newsletters.
These communications help to send important messages to members, gather feedback, and conduct polls to ascertain the position the members wish for the ERG to take at a particular moment.
✅Plan Activities
Meetings and online communication cannot be the only time the group members come in contact with each other. An ERG should organize occasional activities to drive unity, boost membership further, and make any further announcements. Also, try to include all workforce members so that even non-members do not feel threatened by the group.
✅Prioritize a Commitment from Leadership
An ERG needs constant communication and a firm commitment to change from executive leadership. Ultimately, these will be the people invoking the changes the groups desire, so there needs to be an understanding between the two groups that they will seek to prioritize the groups' initiatives.
Examples of Successful Employee Resource Groups
There was a time when ERGs did not exist, and the concept of such a group was not on anyone's radar. However, the worker pool and consumers are increasingly looking for companies with diverse and inclusive environments, leading to the emergence of ERGs in almost every major corporation.
Below are some well-known ERGs:
The Young Professional—Created to assist the Teachers Insurance and Annuity Association of America, these groups have been designated to help integrate new hires into the workforce and help them advance through the company. Through workshops, volunteer work, and other gatherings, they provide networking and advice on career development.
Women Techmakers—This group has assisted women working in the tech industry. While primarily focused on Google, it has also expanded into other businesses. With over 81,000 members, this group has held over 605 events, all seeking to help provide resources and, more importantly, visibility to women in the tech industry.
A3TION—The Asian and Asian Americans Coming Together for Innovation and Opportunity Network at 3M has been a tremendous voice for the Asian community at 3M, providing a safe space to voice their concerns and seek solutions they encounter daily.
Interfaith—A Fannie Mae ERG; this group has helped its members maintain faith based principles. It allows its members to maintain and share their beliefs with other like-minded folks across the organization.
Appian Wellness—This Appian ERG emphasizes its members' mental health. Appian aims to help its members not lose themselves while working in a demanding AI process automation industry.