Employee Resource Groups (ERGs) are voluntary, employee-led communities that provide a platform for their members to foster connections, develop skills, and enable organizational diversity, equity, and inclusion (DEI) objectives.
Photo by Jason Goodman on Unsplash
Employee Resource Groups (ERGs) are voluntary, employee-led communities that provide a platform for their members to foster connections, develop skills, and enable organizational diversity, equity, and inclusion (DEI) objectives.
ERGs are typically focused on a specific demographic, identity, or shared lived experience — often those that are historically and currently marginalized in society. Often, you’ll see workplace ERGs for women, BIPOC communities, 2SLGBTQ+ folks, disabled people/people with disabilities, veterans, newcomers, or religious groups, but the list of options is endless.
ERGs are exceptionally common in the workplace. 90% of Fortune 500 companies have ERGs in place. The average number of ERGs for a single organization ranges from six to eight, with many of those ERGs having sub-entities based around geographic chapters or nuanced intersectional identities (i.e., a Transgendered employee community within a larger 2SLGBTQ+ ERG).
In simplest terms, I often refer to ERGs as “student clubs, but for adults.” Yes, it’s cheeky, but there are a lot of parallels. If you choose to engage, these often unpaid and totally optional extra-curriculars tend to be the most memorable part of your campus/workplace experience.
What Value Do ERGs Bring?
ERG impact varies. From almost no-existent to glorified social committees, many ERGs are often sequestered to the “nice to have” or “not worth the investment” corners. This strategic sidelining is often warranted, but as a DEI practitioner specialized in ERG enablement, it’s frustrating to hear because ERGs can be so much more. High impact, established ERGs do exist and have the capacity to both inform and catalyze business priorities across functions, not just DEI.
Here are three examples of how ERGs can drive meaningful business value:
Inform more innovative offering development and delivery
ERGs can provide a unique perspective on customer needs and preferences. ERG leaders are usually members of marginalized communities or deeply connected to these communities and bring forward diverse, often overlooked perspectives. Their input can lead to the development of more representative and innovative products or services, which can translate into increased market share and customer loyalty. For example, Procter & Gamble’s Hispanic and African Ancestry ERGs played a pivotal role in the development of products like Pantene Gold Series, a line of hair care products specifically designed for natural hair, resulting in increased sales and market share.
Drive the attraction, retention, and advancement of diverse employee segments
ERGs can play a critical role in attracting and retaining diverse talent. ERG members are often highly plugged into their own communities and can act as liaisons to historically overlooked candidate pools. Once talent enter the organization, ERGs provide community and voice to the members, cultivating safe spaces for connection and advocating for their needs. By fostering an inclusive work environment, ERGs can contribute to increased employee engagement, satisfaction, and retention. Additionally, ERGs can provide professional development opportunities for their members. ERG leaders themselves benefit from the high visibility and accelerated learning that often comes from these roles. For example, at Dell Technologies, the Women in Action ERG has helped increase the retention rate of female employees and has been instrumental in promoting gender diversity in leadership positions.
Foster new community investment and social impact partnerships
ERGs can also aid in fostering meaningful community investment and social impact partnerships. ERG members often have a deep understanding of the needs and challenges facing their communities, and can leverage their networks and resources to create relevant change. By identifying and engaging with potential community partners, ERGs can have a greater impact and contribute to social justice efforts. For example, Microsoft’s Black and African American ERG has partnered with local organizations to create initiatives that address the digital divide and increase access to technology for underrepresented communities.
Overall, ERGs are more than a “nice to have”. They can bring significant value to businesses by informing more innovative and representative offering development and delivery, driving the attraction, retention, and advancement of diverse employee segments, and fostering new community investment and social impact partnerships. However, it is important to recognize that ERGs are not a panacea for all DEI issues, nor do they magically appear within organizations. Effective and sustainable execution of ERGs requires intentional effort and investment. When effectively championed, engaged, and resourced, ERGs can be powerful drivers of organizational success and positive social impact.
