What are Employee Resource Groups?

An employee resource group (ERG) is a formally supported, voluntary, employee-led diversity and inclusion program. ERGs are often established around shared identities, hobbies, or backgrounds to assist employees by offering networking opportunities and fostering a more inclusive workplace. Organizations refer to ERGs by a variety of names such as corporate resource groups, affinity groups, inclusion resource groups, or network groups (among many others)!

Though employee resource groups have been around in some form since the 1960s, they now represent far more broad demographics, such as a women's ERG or a Latine ERG, and more particular groups, such as single parents, veterans, or cancer survivors.

What are the benefits of Employee Resource Groups?

According to BetterUp online, when people feel comfortable bringing their entire selves to work, creativity and belonging can thrive.

ERGs foster high-trust connections and help employees spark dialogue, introduce new perspectives on topics, and stimulate creativity.

Plus, when executives at companies delve further into their Trust Index© survey data, they are often surprised. If there are disparities in experience throughout their workplace, leadership teams can often look to ERGs to close parts of the achievement gap or find qualitative insights to rectify that imbalance.

How should an Employee Resource Group be formed?

Top-down and bottom-up ERGs are both effective. First and foremost, management and leadership teams must provide support — both material and cultural — for the group. This includes funding, social support, and sincere commitment to creating a unique space for the employees. One commonly effective practice is to have a top company leader serve as the executive sponsor and a full participant within each ERG.

Then, organizations can encourage all employees to participate, either as members of the selected group or as allies.

How does this connect to Diversity, Equity, and Inclusion (DEI)?

When companies talk about increasing diversity in the workplace, it typically means hiring and retaining individuals from a variety of backgrounds, ethnicities, orientations, and perspectives. Equity means ensuring that systems and programs are unprejudiced, fair, and produce the best possible outcomes for all of these individuals. Finally, inclusion is about creating a workplace where all employees can feel a sense of belonging.

DEI initiatives are critical to creating a successful company culture, and even a more successful, growth-minded company. These three distinct but intertwined concepts have the ability to take each industry to new highs of innovation and invention, but for this to be successful, first steps like creating ERGs, evaluating staff happiness levels, and formal commitment to change are essential.

Leadership Makes a Difference

Over the last year, most major companies have reported improvement and recommitment to their diversity, equality, and inclusion (DEI) efforts. However, creating a workplace culture where all employees feel included as valuable team members is not a one-and-done effort. Professionals in human resources, executive-level leadership, and the DEI space must continue to find ways to build a culture of belonging for members of their workplace.

To fully realize DEI initiatives and establish this culture of belonging, leaders should consider the following actions:

1. Consider cultural addition rather than culture fit.

For many recruiters and talent professionals, "culture fit" is a common selection criteria for new hires. However, hiring someone with beliefs that match those of the company and who fits well with the present staff may unintentionally foster a culture of prejudice and limit diversity. Organizations that only look for more of the same will inevitably suffer from limited creativity and “out-of-the-box” thinking. As Forbes puts it, diverse and inclusive companies make 87% better decisions and they have 60% better results. Fostering multiple, varied perspectives gives those organizations an advantage in innovation and problem-solving.

Instead of focusing on "culture fit," recruiting managers can prioritize "culture add," which encourages diversity and challenges the current quo. Employees who challenge the established culture in organizations have the ability to jumpstart necessary, beneficial change.

2. Recognize unconscious prejudice.

Leaders are human, and individuals, by definition, have biases based on their experiences and perspectives. Rather than always trying to be all-inclusive, leaders must be open to addressing their blind spots and preconceptions. These learning moments can lead businesses toward inclusivity, collaboration, and belonging.

3. Choose a variety of sponsorship and mentorship opportunities.

Employees frequently seek mentors and sponsors who look like them, so creating a pathway of equal opportunity for professional growth is essential for inclusion initiatives to succeed. In many ways, ERGs can plug into and expand this network of mentors, mentees, and lifelong learners.

4. Encourage community involvement.

To create an environment where everyone feels welcome, leaders must be intentional in their actions and in how they communicate. The end goal is a workplace where employees can feel a sense of belonging, be respected for who they are, and feel invested in the businesses’ long-term success.

So… why does it all matter?

Organizations that want to move the needle on employee belonging must go beyond simplistic or one-by-one DEI training or initiatives. Executives and leadership teams can and should learn more about how to handle both the business and the human aspects of their organizations. By creating and sustaining long-term structural efforts to support their diverse teams, such as employee resource groups and increased family or lifestyle benefits, leaders can play a critical role in the overall success of their company.

Some workplace benefits, like on-demand legal guidance from TurnSignl, support the “full person” of employees, as well as their family and friends. Other benefits such as a meal delivery service, remote work, or fitness class stipends, further support a culture of well-being that benefits both the financial and mental health of an organization.

Learn More

To discuss adding TurnSignl to your workplace benefits package, contact the partnerships team at info@turnsignl.com. With face-to-face guidance from an attorney over video chat during accidents and traffic stops, TurnSignl’s mission is to make sure that civil rights are protected for everyone — every time.