Employee Resource Groups: 4 Benefits of ERGs

Employee resource groups, ERGs for short, are a form of employee engagement in which coworkers of a mutual demographic meet regularly to bond over shared experiences. ERGs may connect employees of similar ethnicities, sexual orientations, faiths, disabilities, and more. These affinity groups aim to provide peers with a safe space, enhance employee well-being, and foster a more inclusive workplace.

Employee resource groups are increasingly popular because of their importance in prioritizing employees' welfare and enacting companies' mission statements. Senior leadership may look to employ and empower a diverse workforce, and funding ERGs is one way to highlight a commitment to inclusive hiring and development opportunities for workers of unique backgrounds.

Employee resource groups can be influential in several ways, including:

1. 1. Cost: ERGs can be cost-effective. Human resources or ERG members may find an executive sponsor to fund these company culture efforts, saving the company money while improving the employee experience.
2. 2. Employee retention: ERGs improve the employee experience by giving workers a stronger sense of belonging, leading to stronger ties among employees and higher employee retention rates.
3. 3. Inclusion efforts: ERGs show a commitment to inclusion. Affinity groups for specific demographics—such as LGBTQ, Latinx, or working parents resource groups—provide new employees with a safe space to bond with peers and show the company is a welcoming place.
4. 4. Professional growth: ERGs can foster professional development. In addition to engendering an inclusive environment, ERGs can strengthen the work environment by providing employees with webinars, mentorship, and other programs to enhance employee growth and satisfaction.

There are several ways senior leadership and employees alike can build allyship, improve cultural awareness, and jumpstart ERGs. Follow these steps:

1. 1. Announce your plans to HR. Tell Human Resources of the plans for a group. Whomever your affinity group includes, communicate this to HR so they can send out a memo to invite employees to join your group and strengthen ties among coworkers.
2. 2. Get funding. If there is a desire for a more elaborate employee resource group—complete with professional development, guest speakers, or field trips—employees can apply for funding or seek out a benefactor who is a philanthropic member of the given community to help support these efforts.
3. 3. Set time aside. Many ERGs take on an informal capacity. Coworkers may meet monthly and hold time on their calendars to meet in person for lunch or online for remote workers.
4. 4. Speak with upper management. Keep upper management in the loop, so they can see your ERG as a model for future ones to start and grow. This will also show initiative and interest in a more inclusive workplace, which may impact hiring trends and organizational culture.

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