What's an ERG (Employee Resource Group) ?
Diversity and inclusion in the workplace as a discussion isn’t enough to promote belonging among employees. To cultivate workplace belonging, organizations need to establish genuine and practical strategies to foster inclusivity.
Creating employee resource groups (ERGs) is one of the many ways organizational D&I programs can cultivate workplace belonging. However, for this approach to be successful, the organization must learn how to effectively roll out these programs.
Find tips on becoming a leader in your organization’s ERGs here.
What is an ERG?
ERGs are employee-led groups within the organization that provide a space for support, career development and raising awareness about specific demographic’s experience. They embrace the principles of diversity, equality, and inclusivity, often reflecting a particular ethnicity, gender, age, or other identity facets.
ERGs, the acronym for Employee Resource Groups, are also known as business resource groups or employee networks. ERGs aim to promote a more inclusive workplace and socially responsible business practices that in turn build more employee trust, commitment, and sense of belonging. These networks act as miniature think tanks and catalysts for innovation in fostering understanding and collaboration with an organization.
Functioning as bridges in the organization, ERGs link employees to management, thereby enhancing the flow of ideas and supporting the company's overall DEI objectives.
At an organizational level, ERGs come with three key benefits :
Talent Attraction and Recruitment
Talent Engagement, Development and Retention
Customer Attraction and Market Outreach
These groups frequently act as internal advocates, pushing the organizational culture towards a more encompassing and compassionate direction.
Through events, workshops, mentoring, and networking opportunities, ERGs enable connections that transcend the traditional professional barriers, making them essential cogs in the modern organizational machine.
Examples of ERG Groups
ERGs operate as a vibrant collective within a corporate ecosystem. It's a unified congregation of individuals who, although operating in various departments and capacities within the organization, come together over shared common attributes, interests, or backgrounds.
Depending on the organizational location and set up, there is a wide selection of ERG groups. Some of the common ones include:
Women’s ERGs
For example, LeanIn - Offers community circles, research, and support for women in the workplace.
LGBTQ+ ERGs
For example, Out & Equal - An organization dedicated to workplace equality for LGBTQ+ employees.
Racial and Ethnic Minorities ERGs
For example, The Executive Leadership Council - Focused on the development of Black executives.
Veterans ERGs
For example, Hire Heroes USA - Supporting veterans in transitioning to civilian jobs.
Disability ERGs
For example, Disability:IN - Promoting disability inclusion in the workplace.
Why Are ERGs Essential?
ERGs are essential to change an organization for the better – they don't only create a safe space for marginalized employees, but they also serve as useful social, cultural, financial, and strategic think tanks for the business.
According to Forbes, up to 90% of Fortune 500 companies have ERGs while up to 8.5% of US-based employees belong to one.
Talent Attraction and Recruitment
When it comes to talent attraction and recruitment, ERG members can act as excellent ambassadors for the organization to attract better and more talent. Additionally, ERG members can easily represent organizations through conferences, job fairs, and even through hosting networking events.
In these instances, ERG members of the same demographic group are likely to mingle with individuals of the same group – thus, acting as ambassadors of the organization for targeted recruitment. For example, an organization with a low Indigenous representation can help inform their D&I team of organizations and events they can recruit more Indigenous talent from, in addition to representing the company at job fairs.
Talent Engagement, Development & Retention
To successfully run ERGs, there must be key players behind them. In addition to the members, there will be leaders and people that are involved in executing some of the group events and programs.
This is an excellent chance for marginalized employees to have additional opportunities for leadership and management positions. Through ERGs, members are given direct access to senior leadership and opportunity for manager skill development. Thus, an organization with a successful ERG is more likely to experience diverse talent retention and promotion than one that doesn't.
Customer Attraction And Market Outreach
A company with more representation of a certain demographic group is more likely to attract customers from the same group. However, this is not only limited to customers. In fact, according to the media company Bloomberg, more investors – of which the majority are millennials – are inclined to invest in a company not by just focusing on returns.
Such investors look at where they put their money as well – is the company diverse? Is it inclusive? Does it impact the world more positively?
Since ERGs play a key role in the retention and promotion of marginalized employees, they also impact the company’s customer acquisition and markets. ERGs directly impact the company's productivity as they also play a role in drawing in expanding market opportunity.
Open and Inclusive Spaces
ERGs serve as an inclusive and open forum for employees in a similar demographic; a safe space. This is where they can meet and support each other while also sharing common concerns or interests within the organization. After all, it is easier for an individual that shares a similar outlook/perspective/experience to identify these traits than one from a different demographic group.
They also help to further cross the bridge between the senior leadership and employees. For example, a member of the LGBTQ+ ERG will find it easier to relay their concerns to a fellow member than to someone who may not necessarily relate to their experiences.
The Scope of ERG Members and Leaders
While ERGs are important in improving the workplace environment, it shouldn't be a base for starting other organizational problems. A D&I leader will never be the organization's sole expert in marginalized groups. A D&I leader should understand the existence of different experiences and work towards reinforcing this understanding within the organization.
Furthermore, their role is to ensure these voices are included to be able to create a successful D&I strategy for that particular company. D&I leaders normally sit in HR and not in the direct business. Unbeknownst to many people, there is still a significant gap between HR and the rest of the business.
Remember, ERG leaders directly interact with their members and employees at a closer level than HR, therefore, they are better positioned to be more impactful. To seal the marginalized gap, D&I leadership should be a branch of the company – thus, these individuals are to be compensated for their work and time.
After all, their experiences and expertise are what contributes towards improving the overall organizational performance and change.
ERGs are Essential for an Effective D&I Program
ERGs play a role as both beneficiary and benefactor of an organization's D&I program. For one, they can be rolled out as part of the company's D&I program. However, they can also be used as a tool to execute an effective and successful D&I program.
After all, ERGs can be used by the senior leadership of the company to identify issues within the company that are related to D&I such as community concerns, needs, and policies. For example, a company can create policies that directly impact the business such as the rollout of products, social impact programs, and even the drafting of mission statements with the proper input from all employees.
If a company is thinking of launching a campaign, ERGs can be used to ensure campaigns appeal to all demographics and are not offensive to any group. A good example is consulting with ERGs to prevent "cringeworthy advertising blunders'' such as Ashton Kutcher’s 2012 brownface Popchips advert imitating an Indian character named Raj.
Examples of Well-Known Corporate ERGs
These dynamic collectives represent the tapestry of an organization's culture, where the threads of diversity are woven together, enabling employees to thrive in a nurturing and supportive environment.
Notable impactful corporate ERGs include:
Women at Microsoft, Microsoft Diversity and Inclusion
PRIDE at Johnson & Johnson, Johnson & Johnson Diversity & Inclusion
Black Googler Network, Google Diversity
Veterans at Lockheed Martin, Lockheed Martin Diversity and Inclusion
AccessABILITY at AT&T, AT&T Diversity & Inclusion
NextGen at Accenture, Accenture Diversity
Parents@SAP, SAP Diversity and Inclusion
How To Run a Successful ERG
The Organization Must Be On Board
The only way an ERG will have any impact is if the leadership is on board and corporate policies are developed to support these groups. This is not to say that you will not find grassroots groups in some organizations, yet, those recognized by the leadership are more inclined to be successful.
Formal support can even come with the advantage of allocated budgets which can in turn finance programs such as networking events. Companies that want to enhance diversity within the organization can make use of their ERGs if they are a formal group that is recognized and incentivized for their efforts.
Again, this falls under the category of aligning with business objectives. Thus, formal ERGs can benefit both sides. Employees that are supported by the leadership are more likely to stay with the business and be committed. On the other end, companies can benefit from more talent acquisition through these groups and even enjoy more productivity and profits.
Unity Within The Organization
Employee resource groups do an excellent job of connecting people from different levels of the organization and create a sense of community and belonging – be it a working parent support group or an LGBTQ+ network.
Nevertheless, concerns, ideas, and inputs from these groups should be properly received and included in the company's bigger picture, or else this may simply lead to bigger problems within the company with ERGs turning into complaint and solidarity groups.
Defined Charters
To successfully run ERGs, there is a need for clearly set goals and focus that both leaders and members can agree on. The point is not only to create a community and a sense of belonging but, also to effect impactful change.
Have Liaisons
Employing dedicated support for the ERGs takes the strain off of leaders and even members. It also helps to influence business decisions – it’s like having organizational allies that support the group.
The support can be from a wide range of key players whether it’s an executive sponsor, an HR business partner liaison, or a full time employee dedicated to ERGs.
ERG Overview
To reiterate, ERGs help to improve the execution of effective D&I programs, provide valuable insights from all perspectives, creates a safe space for marginalized employees and gives them a voice, bridges trust between the D&I team and the business and embeds D&I in the workplace to make it a daily organizational process at all times.
According to Janice Gassam Asare, a contributor at Forbes, starting an employee resource group is doable for any company, however, it is important to follow several key components. Senior leadership involvement facilitates a smoother and successful implementation of an ERG. Thus, to start one, there should at least be an executive sponsor, particularly one that holds a strong position within the company.
Secondly, the ERG must be realistic and address the company’s needs and set goals. For example, is the company less represented by minority ethnic groups? Does it have trouble recruiting women? Once the gap is identified, it is much easier to create a group with the necessary and specific goals and objectives.
Furthermore, it’s easier to start small and grow the group from there. It’s also a good idea to have allies that don’t necessarily belong to the group or bear similar views or experiences. These people should have a genuine want to learn more and show more support for the group.
Lastly, advertising the group is also important. This creates awareness within the organization and gets more people involved. Advertisements should be straight forward whether it's through the company’s intranet, tech resources such as Trello or Slack, newsletters, or bulletin boards. After implementation, just like any other program or project, monitoring and analysis are key. This gives you an insight into whether or not the program is actually effective.
In this case, you’ll want to address the issues that first led to the inception of the ERG. Has diverse representation increased in the organization? Are there more women being hired? This is the easiest and most qualitative way to gauge if the program works.
There’s no doubt that employee resource groups improve the overall experience for both employees and employers.
