When it comes to change, what we see on the outside is often a reflection of what’s on the inside. That means organizations looking to maximize their positive impact on the world and engage top talent may need to build some internal infrastructure first. Fortunately, employers have many tools available for fostering employee fulfillment and satisfaction. One of these is creating employee resource groups (ERGs).
These cohorts can amplify your company’s existing DEI (diversity, equity, and inclusion) initiatives and help your team members feel like they belong. But wait – what is an employee resource group, exactly? And how do you build one? Let’s take a look.
A paraphrased definition of an employee resource group is a collection of employees within the same company who unite over a shared characteristic or purpose. Employees often create ERGs of their own volition without direct involvement from company management, though employers can play vital roles in the development of these groups.
The Xerox National Black Employees Caucus, launched in 1970, was one of the first employee resource groups at a major U.S. company. Its members started the group partly in response to the 1964 Rochester, N.Y. race riots and the lack of upward mobility for Black employees in the company.
Since then, the mission of many (if not most) employee resource groups has been rooted in workforce equity and inclusion.
Employee resource groups often center around a shared identity or protected class. A few examples of common employee resource group characteristics include:
Apart from identity-based ERGs, some employee resource groups have a specific purpose, such as increasing volunteerism or promoting inclusive hiring practices.
Is your company destined to fail without ERGs? We wouldn’t say that it is—you know your business better than anyone else. What we can confidently say is that your company has a great chance of experiencing decreased employee turnover, increased internal and external goodwill, and higher rates of employee engagement.
The corporate world has seen tremendous strides in equality and inclusivity, but we argue the work is not finished. Only 25% percent of C-suite leaders in the U.S. are women, and only one in 16 are women of color. Employee resource groups can help women leaders, for instance, feel less isolated and more confident. Those circumstances can have a trickle-down effect that encourages more women to seek leadership positions.
The C-suite is not the only place in the corporate world where women see fewer opportunities. For every 100 men promoted to senior positions, only 87 women get the same opportunity. That statistic exists despite women making up more than half of the U.S. workforce.
The days of expecting employees to simply perform their responsibilities without being involved in the company’s direction or public image are over. Workers now want to feel engaged. They want to feel like they belong.
Employee resource groups are one of the best and most efficient ways to increase employee engagement. When employees feel engaged with the company, they’re more likely to be excited about its overall mission.
Some of the best publicity your company can get involves charitable endeavors or social justice initiatives. ERGs—especially ones consisting of employees in protected classes—grease the wheels for these kinds of campaigns. Your ERG workers will feel an even greater sense of satisfaction when you highlight charitable activities in external (and internal) communications.
Starting an ERG is not difficult. More than 90% of Fortune 500 companies have some sort of internal employee resource group. If the big guys can do it, you certainly can. Here are three essential steps to get an ERG off the ground at your business.
A well-rounded employee resource group can serve many purposes, but you need to start with your priorities.
Identify your company’s deficits: are employees feeling unsatisfied or disconnected? Is employee turnover hurting productivity? Do you want to see more diversity in the office? Setting priorities as north stars during ERG creation can ensure your organization’s needs get met.
Clearly stating the purpose of an ERG is crucial in the planning stages. Your employees can do so in the ERG’s charter.
They will want to define the ERG’s broader purpose, identify strategies and tactics to accomplish the purpose, set up a governing hierarchy, and name individuals who are accountable for accomplishing the goals. Want to go the extra mile? Create a handbook.
A successful employee resource group needs acceptance and buy-in from management and other workers who might be affected by its mission.
Make sure everyone who might want to be involved in the ERG has their voice heard. The same principle guiding ERGs applies to other workers—those who feel involved will make positive contributions.
Fulfilling every step needed to create an ERG is imperative for a successful group, but here are some ways your employees can maximize its utility:
Answering the question, “What are employee resource groups?” is easy enough. Setting up these groups in your company and ensuring their success can be a little more challenging.
Having an existing DEI strategy and CSR initiatives can provide blueprints for employee resource groups, but a comprehensive, web and mobile-friendly platform is essential for long-term stability.
Groundswell offers intuitive software for enterprise and small and mid-sized companies looking to start or expand CSR initiatives. Our platform can help you track employee volunteerism, match donations, manage grants, and distribute funds to nonprofits more efficiently than you ever thought possible.
Empower your ERGs to launch and oversee initiatives like volunteer activities, giving campaigns, strategic grantmaking, and more. Groundswell’s low fees and rapid distribution timelines help you see the impact of your ERG’s efforts quickly and reliably.
Open new doors for employee involvement in your social impact efforts with an accessible solution like Groundswell. Ready to learn more? Book a demo to see our platform in action.
