Human Resources Director at CertiK.
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Employee resource groups (ERGs) are great ways to involve a multitude of individuals in activities that can make a difference. These employee-led communities are where colleagues can connect with others over commonalities in a safe environment.
McKinsey found that 90% of Fortune 500 companies have ERGs, and the groups are more likely to foster community building compared to other efforts, such as external engagement, allyship and leadership connection. Additionally, ERGs can create a sense of belonging, provide support and empathy, increase performance and decrease turnover, especially with diverse workers.
Companies of all sizes can work to create these groups, in remote and onsite settings. Here are several tips to start thinking about how ERGs can find success in your organization.
1. Conduct Surveys To Gauge Interest
When we wanted to establish employee resources groups at CertiK, we first conducted a survey to see what types of groups would interest our employees. The top choices that we decided to build ERGs around were wellness, DEI, parental support and, interestingly enough, Lego. In the upcoming years, we look forward to expanding our community options.
When we conducted the surveys, we asked pointed multiple-choice questions while leaving free-write space for people to share their feedback and ideas. This way, we allowed people to share their creative thoughts while still streamlining the responses. In follow-up surveys, we cited previous data, highlighted frequently requested ERGs and asked additional questions. To start building toward an ERG program, include survey questions about what types of ERGs would interest employees, who would be an effective ERG leader, what potential events could be hosted and what outcomes/goals the groups should have. It can also be beneficial to discuss these potential communities with focus groups or highly engaged individuals who would be apt to take on a leadership role.
2. Offer Support To Group Leaders
One of the most challenging aspects of our ERGs so far is finding a leader or multiple leaders for each one. The Lego and wellness leaders are doing a great job, but we've struggled to find people to helm the parental support and DEI-related groups. In a very busy startup like ours, many people either don't have the capacity to lead a group or don’t have prior leadership experience. That's why it's important for HR to act as a behind-the-scenes partner to help group leads navigate the budget, events, outreach and event planning.
Because ERGs are opportunities for advancement, there should be rewards for leaders to help drive interest. Some organizations offer extra bonuses or payment to leaders to incentivize them due to the extra time and work it takes to successfully run an ERG.
Connecting with your company's leadership team to obtain support is also essential. If executives are active or attend ERG events, it can have positive ramifications like additional resources for the group and connecting across levels. Executives can serve as champions by helping these communities grow through internal company networking, acting as an ally or sponsor to support the group’s mission and helping them develop goals.
3. Take Budget Into Careful Consideration
ERG leadership needs budgets for events, speakers, contests, “lunch and learns” and other activities they offer. HR can work with group leaders to plan activities and forecast how much they can spend. Part of this should involve surveying members—or even the whole company—to determine what events people are interested in. Then you can focus on an activity's impact and whether you can calculate a return on investment.
When you go to company leadership with a budget proposal, listing metrics to evaluate after each event should help with buy-in. You can always start with a smaller budget to see what activities ERG members may be interested in and then build from there.
4. Set Goals And Standards
Successful ERGs have goals, standards and metrics to ensure their effectiveness. These help align groups with organizational values and goals, formalize details like meeting frequency and set benchmarks to measure progress and successes.
For example, if an ERG for LGBTQIA+ employees wants to plan a Pride event, what goals could guide the planning and execution? Would success be measured by overall participant satisfaction, employee net promotor score (eNPS) or attendance? There are a lot of factors to take into consideration, and they should be modifiable as the ERG grows.
Employee resource groups offer a multitude of benefits. By clearly planning a path forward and involving leadership, these groups can involve employees in activities that lead to making a difference both internally and within the local community. As HR leaders, following these four steps can help ensure the success of new or existing ERGs at your organization.
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