According to Gartner, “An employee resource group (ERG) is a voluntary, employee-led diversity and inclusion initiative that is formally supported by an organization.” Also known as Diversity Groups or Affinity Groups, they are a critical element of your company culture and DEI initiatives.
These groups consist of individuals who unite based on shared interests, identities, backgrounds, or demographic factors. Some of the more common factors include race, gender, ethnicity, religion, disabilities, sexual orientation, and age. They generally vary in size, depending on the topic of the group. While most are made up of volunteers, some companies support the organizers with a percentage of paid time or other recognition methods.
According to TopMBA, 90% of Fortune 500 companies have ERGs – so the question is, how could they benefit your organization?
The value of ERGs
Community and empowerment
At a fundamental level, ERGs help build a sense of community in your workplace.
By giving employees a collective voice, ERGs empower them to address concerns as a community – whether the issues are policy changes, cultural changes, or pertain to relationships between different levels of an organization.
It’s a way to create visibility for active members – ERGs provide diverse insights that can affect the decision-making process. By offering their experiences and perspectives, ERG members can help promote more inclusive products and services.
Lastly, ERGs support employee development by offering leadership opportunities regarding community issues and needs.
Employee recruitment and retention
At a time when talent recruitment and retention is a challenge, the feeling of community that ERGs promote can be the thing that makes your employees stay with your company – or brings in new hires.
ERGs can help existing employees bond with like-minded colleagues, fostering a stronger sense of belonging and attachment to the company.
Promoting diversity, equity, and inclusion in the workplace makes workers happier overall and less likely to turn their attention elsewhere.
In terms of recruitment, 76% of job seekers take diversity into consideration when evaluating a job offer. ERGs play an important role here, as many candidates now also look at websites like Glassdoor to see how current employees feel about the company culture, especially concerning the treatment of minority groups.
The bottom line – ERGs are an important asset
ERGs are a valuable tool in making your employees feel like they are being heard. Not only do they create an open forum and a safe space where employees can support each other and feel comfortable being themselves, but they also empower workers by offering financial and organizational support and access to leadership.
They are a key element in advancing your organization’s inclusive work culture and even help increase employee engagement. If your company doesn’t have employee resource groups already, it’s time to speak to your employees and invite them to participate.