What Are Employee Resource Groups?

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Summary. Employee resource groups, also known as ERGs, are employee-led groups that connect volunteer members with similar traits or interests to promote diversity and inclusion within the workplace.

Your company wants the best workforce possible. You want your employees to be efficient and effective, both as individuals and as a team.

Yet sometimes, for your employees to be at their best, they need to feel like they belong. A sense of belonging goes a long way toward improving motivation and productivity. What’s more, it is the morally right thing to provide for any person.

That is why employee resource groups (ERGs) are a critical component of any organization’s diversity, equity, and inclusion (DEI) strategy. Embracing ERGs in your company can be the difference maker in uplifting your employees to reach their full potential.

Key Takeaways:

ERGs can be based on any shared trait, such as race, gender, religion, or lifestyle interests.
ERGs build trust among employees and employers, as well as help make more informed decisions with DEI strategy.
A diverse workforce will reveal new leaders and help fuel innovation.
The executive leadership of a company must genuinely support their ERGs, actively and financially, if they want to see legitimate progress.

What Is An Employee Resource Group?

An employee resource group (ERG) is a voluntary, employee-led group that promotes diversity and inclusion with the support of the organization. ERGs are organized around common traits, characteristics, or interests shared by the employees, such as:

Race
Gender
Sexual orientation
Religion
Nationality
Cultural beliefs
Lifestyle interests

ERGs connect people to build a supportive community. This is especially true for those who feel underrepresented by company policy, and it gives them a platform to voice their needs effectively. This can be accomplished by providing resources such as:

Networking opportunities
Career development
Education and training
Access to resources that increase well being
A safe space to discuss issues

ERGs focus on inclusivity, which means members can come from diverse backgrounds outside of the group’s identity. That is to say; ERGs encourage allies to their cause. However, it is important that the ERG remains committed to whatever its initial needs lead to its founding.

ERGs are also known as affinity groups, inclusion resource groups, or network groups.

Why Employee Resource Groups Are Important

Employee resource groups are important because they help underrepresented employees build a more supportive, inclusive work environment. Specifically, ERGs:

Build trust. If employees can feel more secure in their needs and they see their organization following through on their support, then they will be more willing to trust their leaders and their peers.
Create a sense of belonging. Inclusion welcomes employees to feel comfortable with who they are and accepted by their peers.
Spread awareness. ERGs can voice the concerns of their members with the backing of the organization so that they reach a bigger audience.
Create constructive changes. ERGs can focus attention and resources so that company policies can have a more informed approach to their diversity, equity, and inclusion (DEI) strategies.
Improve physical work conditions. The unified voice of an ERG can provide the necessary leverage to build a more inclusive work environment.
Improve health and well-being. Employees will feel greater satisfaction and reduced stress if they have an ERG as an outlet to address their needs.
Make employees feel valued. ERGs affirm the values and needs of their members, which builds a sense of respect and community.

On an individual level, ERGs respect the fundamental human needs of their members. In the big picture sense, ERGs strengthen the entire workforce of a company by uplifting talented employees who might otherwise be lost due to unfair, discriminatory business practices.

Why Employee Resource Groups Are Good For Business

ERGs are not just good for the people they serve but for the organization as a whole. This is because ERGs provide benefits such as:

Increased employee engagement. Employees are more likely to feel connected to their company when they know they have support groups that will vouch for them.
Reduced employee dissatisfaction and turnover. When people are unhappy with their workplace, they need an outlet. Organizations that don’t address the needs of employees, particularly those who are underrepresented, risk high rates of turnover.
Better recruitment. A company will be able to pull from a larger candidate pool because applicants from diverse backgrounds will be more interested in a company that provides ERGs. This might even be accomplished through the networking opportunities that ERGs offer.
More diverse workforce. The improvements to recruitment and retention over time result in more employees of different backgrounds joining and sticking around.
Identifying and developing leaders. The ERGs give individuals with leadership qualities a chance to show off their skills. These individuals may take a leadership role within the ERG, or the ERG may encourage them to take leadership roles elsewhere in the company.
Increased innovation. Underrepresented employees will feel more comfortable sharing their ideas if they have a safe space that will not judge them unfairly. Also, just by the nature of having a more diverse workforce, a company will have a large collection of different perspectives.

At the same time, ERGs help avoid negative consequences like:

Discriminatory legal action. ERGs provide a safe outlet for a diverse workforce to address company behaviors that might otherwise devolve into toxic discrimination and legal repercussions.
Negative public perception. Companies that do not have an ERG are at risk of having a culture of exclusion. On top of being unfair, this can harm a company’s attempt to reach certain markets as well as reduce the number of applicants to open job positions.
Unmotivated or openly hostile workforce. Without the support of ERGs, underrepresented employees will be less engaged. A lack of an outlet for their needs can manifest in insubordination.

Companies should use ERGs as part of their diversity, equity, and inclusion (DEI) strategies. The goals of the ERGs should align with the overall DEI strategy so that an organization is working, both from the top down and the bottom up, to develop a robust, diverse workforce.

Types of Employee Resource Groups

ERGs can be broken down into four general categories. They are:

Diversity resource groups. These are ERGs for employees who are a minority within the workforce. Diversity resource groups are the most focused on building support and inclusion. They look to provide appropriate resources for their members and encourage organizational leadership to take inclusive action.
Volunteer groups. Volunteer ERGs are focused on helping their communities. They may promote awareness of issues or source volunteers for events.
Affinity groups. An affinity ERG is essentially a social club for employees with mutual hobbies or other lifestyle activities.
Professional development groups. Professional development ERGs are geared towards sharing knowledge and building up certain skills. This can take the form of classes or mentorship programs.

Examples of Employee Resource Groups

An ERG can take many forms. It all depends on the employee population of an organization. Some common examples of ERGs include:

LGBTQ+ ERG
Women’s network
Single parent and working parents ERG
Veterans support group
Environmental awareness group
African, Black, American, Caribbean (ABAC) ERG
Interfaith ERG
Book club
Professional mentorship program

How to Start an Employee Resource Group

If your organization wants to develop an ERG, then it will want to commit to the following steps:

Set up a diversity council. A diversity council will bring together stakeholders in your organization’s DEI strategy. Your diversity council will provide valuable insight into the policies and procedures that best meet your needs.

Membership can include internal representation from your board of executives, human resources, middle management, and concerned employees. You may want to consider including outside membership, such as local community leaders, educators, academics, and consultants, to provide a greater knowledge base.
Provide executive and financial support. It is crucial that the leadership of your organization supports your ERGs both through their words and their actions. Buy-in from executive management will encourage the ERGs to pursue their goals, while an appropriate budget will allow them to act effectively.
Help align ERG to organizational mission, values, and DEI strategy. While the ERG is led by employee volunteers, you will want to make sure the steps they take work in tandem with the overall objectives of your company. This prevents any conflict that would reduce the effectiveness of the ERG.
Provide required resources. Your ERG may need physical meeting spaces, access to technology, food, or anything else that can bring people together for their goals. Along with a healthy budget, your organization will want to enthusiastically offer any of its resources to help the ERG succeed.
Embrace the autonomy of the ERG. ERGs are employee-run, and they target the specific needs of those employees. It is important that you respect this and acknowledge boundaries. Do not dictate their goals or try to interfere with their plans.

Set expectations at the beginning so that your ERGs know exactly how much independence they have, and develop a system of accountability, so things run smoothly.
Maintain clear purpose, communication, and support. ERGs rely on the organization’s full support. Therefore, you should let it be known why you want your ERGs to succeed and always be available to their needs should they ask for help.

Set up clear channels of communication that incentivize two-way communication. Both you and your ERGs should be running constant conversations with one another to help provide energy and momentum.
Periodically evaluate. ERGs are not perfect, and when they are poorly implemented, they can have their disadvantages. Work with the leaders of your ERGs to set up key performance indicators (KPIs) to help them evaluate their progress. Be mindful that the ERGs should be the ones leading the analysis.

Tips for an Effective Employee Resource Group

ERGs are only beneficial when their members feel legitimately supported in their inclusivity needs. Consider the following tips to help your ERGs be effective:

Make sure expectations meet reality. Poorly implemented ERGs can quickly disillusion their members, especially if the groups do not accomplish what they claim they are meant for. Help ERGs be clear on their goals and set realistic objectives.
Make sure ERG has proper resources. Even if the aims of an ERG are realistic, their efforts may be hampered by a lack of resources. This is why your organization has to offer full support, not just with its words but with its actions.
Allow ERGs to function during company hours. ERGs are usually voluntary, so to increase membership and activity, let the ERGs meet while their employees are at work. If possible, provide financial incentives to increase engagement.
Involve executive leadership. The ERGs can feel isolated if they don’t have a strong connection with executive leadership. Have your company’s leaders play a role by involving themselves in your ERGs. Be careful not to overstep boundaries and let ERG leaders still take the primary role.
Avoid ERG leadership burnout. Leading a volunteer group is not easy. ERG leaders are placing a lot of extra time and energy on their shoulders which can get out of hand. Provide leaders with resources to delegate tasks.

Consider offering extra time off or some form of compensation to hold on to their leadership. ERGs can live and die by the type of leaders they have, so if you find a good one, do all you can to keep them.
Promote ERGs activities. Your company has the power to support your ERGs and expand its audience. This will allow them to have an even greater impact. Use your resources to raise awareness among employees, clients, and the community.

Employee Resource Group FAQ

What does an employee resource group do?

An employee resource group connects employees of similar traits or interests to build a supportive and inclusive community.

ERGs are voluntary and led by employees. Their goals vary depending on the community they are trying to build and serve. In general, an ERG will focus on providing the necessary support so that its members can succeed.
Do employee resource groups get paid?

No, employee resource groups do not get paid. ERG membership is made up of volunteers. However, it is possible to provide financial incentives to strengthen ERGs. For example, a business can offer ERGs to meet during work hours so that members are still paid for their time.
Should companies support ERGs?

Yes, companies should support ERGs. ERGs provide support to needs that may not be addressed by the company. Additionally, ERGs help build inclusivity and engagement, which results in a healthier, more productive workforce.
Are there any disadvantages to ERGs?

ERGs can have disadvantages when not properly implemented. This usually occurs when there is a lack of communication and support between the ERG and the leadership of the company. ERGs can be especially ineffective when their members discover that their goals do not align with the goals of the company.

References

Employee Programs

Author

Conor McMahon

Conor McMahon is a writer for Zippia, with previous experience in the nonprofit, customer service, and technical support industries. He has a degree in Music Industry from Northeastern University and in his free time he plays guitar with his friends. Conor enjoys creative writing between his work doing professional content creation and technical documentation.