Everything You Need to Know About Employee Resource Groups

Large group of happy entrepreneurs attending an employee resource group

Your employees are your most valuable resource, so why not invest in making sure they feel comfortable and supported at work?

Employee Resource Groups (ERGs) are one way to do just that. But what goes into making an ERG successful? This blog will explore essential concepts that every ERG should consider in order to make employees feel welcomed, safe, and satisfied.

Employee Resource Groups, properly executed, encourage inclusivity and promote diversity within the company. Many ERGs invite allies to join their groups or support in some way without infringing on the ERG’s “safe space” benefits. These groups provide a platform and a resource for employees who may otherwise be marginalized or silenced. Moreover, these groups can function as an in-house think tank that produces innovative insights.

Benefits of Employee Resource Groups

There are many potential benefits to an ERG. However, the opportunity they provide for growth cannot be overstated. When individual employees grow, the whole company grows. There are also many specific benefits that ERGs provide both to employees and the organization as a whole.

Employee Benefits

Employees in ERGs often experience many benefits, and the group can be credited with many in-office accomplishments, including:

  • Culture: Improving work culture for marginalized groups
  • Growth: Professional and personal growth and development
  • Resources: Members from various departments provide support and resources
  • Leadership: ERGs provide leadership opportunities for promising members

Organization Benefits

A business can take full advantage of its ERGs to identify gaps in business strategies and governance. There are also many specific ways organizations can benefit from ERGs, including:

  • Insight: Specialized ERGs provide information on the company as a whole and growth opportunities
  • Improvement: Members can discuss and innovate on company solutions and pain points
  • Alignment: Groups forge relationships between business and diversity strategies
  • Recruitment: Prospective employees view ERGs as evidence of a positive company environment

Types of ERGs

Businesses are filled with diverse employees who all contribute to a healthy, innovative environment. There exists a multitude of different types of ERGs, but the following are some of the most common types.

  • People with Disabilities
  • Women
  • Faith-based
  • Culture or Ethnicity
  • Gender Identity Minorities
  • Sexual Orientation Minorities
  • Age Minorities
  • Working Parents and Guardians

Employee Resource Group Toolkit Basics

The first step in creating a sense of belonging in your ERG is to define what it is. An employee resource group (ERG) is a voluntary, self-organized group within a company that supports the goals of diversity and inclusion in the workplace. It can also focus on certain areas such as race, gender, sexual orientation, religious or cultural backgrounds, and more.

Once you’ve identified your ERG’s focus, you can then outline the goals and objectives for the group. This will help to ensure that the ERG is in line with both business and diversity goals, as well as identifying key metrics for success.

Elements of an ERG Toolkit

The toolkit should also include the following elements:

  • A clear mission statement and vision for the ERG
  • An understanding of the target audience and how to best reach them
  • A roadmap for achieving group goals
  • Communication strategies, including how to communicate both inside and outside the company
  • Tools for monitoring and measuring progress
  • An evaluation process for understanding what works and what doesn’t

By having a clear plan of action, you can ensure that your ERG will be successful in creating a sense of belonging for all members.

The benefits of an ERG are twofold. On the one hand, they can help create a supportive and inclusive workplace, while on the other hand, they can offer tangible benefits to employees such as networking opportunities, mentorship programs, training sessions, and more.

A Guide to Implementation

All ERGs are sponsored by their organization. This means that every employee resource group has the company’s support, and communication is encouraged between leadership groups. An organization can go about establishing ERGs in several different ways, but there are some commonalities to consider.

  1. First, consider the size of your company. If you have a company of a few dozen employees, consider forming a diversity council, as there may not be enough individuals to form a true ERG.
  2. Second, develop standard practices. Perhaps a diverse leadership board can develop a standard set of policies for proposing a new ERG.
  3. Third, set aside resources. Your organization needs to support your ERGs directly. For smaller companies with limited capital, this can be achieved by renting a dedicated meeting room. For larger companies, this can be in the form of a monetary fund for ERG programs.
  4. Fourth, set ERG goals. This doesn’t mean that the company dictates the goals for each ERG, but makes a standard that each ERG should set goals for itself. This could vary from a goal of creating a safe space to direct, actionable growth within the organization as a whole.
  5. Fifth, regular check-ins. Neither an ERG nor an organization will benefit from a lack of dialogue. Establish regular times for information sharing and communication between ERG leadership and the organization as a whole.

Because ERGs exist for a purpose, here are eight suggestions for starting employee resource groups:

  • Honor Your Company’s Diversity
  • Keep the Door Open for Your Team
  • Impact All Areas of the Business
  • Push Innovation for Employee Experiences
  • Make Remote Space for Team Members
  • Prioritize Employee Socialization
  • Promote Company-Wide Equity

An Incubator in Leadership Development

Employee resource groups are an increasingly valuable source of cultural competence and innovative thinking in award-winning companies.

Also referred to as “affinity groups”, ERGs are made up of people who join together in their workplace based on shared characteristics or life experiences. Some of the most common ERGs are based on ethnicity, disability, veteran status, LGBT, women, generational, religious affiliation, parents, and fitness. Once primarily a support and networking function, ERGs have expanded to become a powerful influence inside organizations. Many members have become thought leaders in talent acquisition, leadership development, community engagement, and advancing the employer brand. Organizations and members alike benefit.

Ways Employee Resource Groups Drive New Business

How do Employee Resource Groups help drive new business?

To help your company utilize Employee Resource Groups to help drive new business, we asked HR experts and business leaders this question for their best tips. From talent and leadership development to fostering a sense of belonging, Employee Resource Groups offer several effective ways to drive new business.

Here are ten ways Employee Resource Groups can help drive new business:

  • Referrals
  • Talent And Leadership Development
  • Attract Top Candidates
  • Authentic Bonds
  • Company Culture
  • Higher Retention Rates
  • Provide A Sense Of Belonging
  • They Make You An Employer Of Choice
  • Develop A World-class Workforce
  • Connect Companies With Local Communities

Northern Trust Stands Out

Northern Trust has a variety of BRCs (Business Resource Councils) that are led, initiated, and governed by employees who any employee can become a member of. A few that stand out include L.I.F.E., which stands for Live in Fullness Every day. This was designed to be a shared space that welcomes people of diverse beliefs and religions. They promote inclusion, facilitate educational programs, and provide opportunities for professional and personal growth. Another Northern Trust BRC is the Advancing Professionals, which provides employees with networking, professional development, education, and community involvement. 

Employees can join a council dedicated to prompt awareness and advocacy (Abilities) as well as the Working Families group. “The Working Families Business Resource Council was formed to provide a forum for parents, caregivers, potential parents, and others affected by work/life balance challenges relating to their families. Additionally, WFBRC sponsors subject matter workshops/events, suggestions for policy improvements and acceptance, marketing for current policies, and facilitates mentoring relationships for employee development and retention. L.E.A.P. (Leveraging Experiences and Perspectives) is also available. “The purpose of L.E.A.P. BRC shall be to provide tools and resources to support the development of an inclusive culture that values and leverages Diversity, Equity & Inclusion to achieve and sustain superior business results.” 

These are among many other unique programs open to Northern Trust employees.

Taking Care of Employees in the Workplace

Creating a sense of belonging for employees is essential to the success and growth of any company. By investing in an effective Employee Resource Group (ERG) toolkit, companies can foster relationships among their employees and build a strong, supportive workplace. 

The key is to provide resources that will help employees feel valued and appreciated. Whether it’s providing exclusive access to training and development programs, celebrating individual accomplishments, or setting up a private online forum, every small step toward creating a sense of belonging in the workplace can make a big difference.

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