How Employee Resource Groups Can Strengthen Your Team

Think back to your first day at a new job—you’re probably checking out the vibe, seeing who you’ll click with. It can be exciting to meet new people and figure out who’ll be your work buddies! But— unfortunately—this isn’t always the case. This moment can be outright nerve-wracking if you don’t immediately see where you fit in. 

Too often, DEI gets treated like a one-time checkbox, but it’s so much more than that. Diversity has the power to transform your teams and fuel innovation. Studies show that gender-diverse teamsoutperform homogeneous ones by 50%—proving that investing in inclusion pays off big time. And on the flip side, a lack of diversity can drag down performance and morale.

So, how do you move from checking the box to real change? Start by fostering equity through employee resource groups (ERGs). These groups help create a workplace where everyone feels like they belong. Ready to unlock the full potential of your teams? Let’s dive into how ERGs can lead the way.

What Are Employee Resource Groups? 

An Employee Resource Group (ERG) is a worker-led collective designed to foster diversity and inclusion within the workplace. These groups are typically made up of employees who share a common identity or are allies to a particular community, such as gender identity, race, ethnicity, religion, or lifestyle. ERGs provide a space for individuals to connect with peers who understand their unique experiences and challenges, often discussing how these factors influence their work environment.

ERGs serve as more than just a place for discussion—they are powerful resources for sharing information and guiding employees on navigating company policies or accessing support systems. For example, members might help new hires understand how to utilize HR services or take advantage of wellness programs. 

ERGs are a strategy with long legs—the first group dates back to the 1970s: the Black Employee Caucus at Xerox. Today, ERGs are widespread, with 90% of Fortune 500 companies offering these groups, and many large organizations host multiple ERGs to reflect the diverse needs of their workforce. By supporting ERGs, companies not only create spaces for inclusion but also foster environments where all employees feel they belong, increasing engagement, satisfaction, and retention across the board.

Business Benefits of Employee Resource Groups

Employee Resource Groups (ERGs) are one of the most powerful ways to align business goals with diversity initiatives. Here’s how ERGs can support both your employees and your company,

Improve the Work Environment for Marginalized Employees

Research shows employees are more likely to leave when a company does not invest in DEI. In fact, 81% of employees surveyed by GoodHire said they’d quit if their employer didn’t commit to DEI. 

ERGs are a concrete way to show that commitment. They provide a safe space for marginalized employees to connect, share resources, and feel supported. This not only improves the work environment but also makes your company a place where all employees can thrive.

Help Identify Future Leaders

Pay attention to the employees who step up to lead ERGs—these individuals may be your company’s future leaders. ERG leadership gives employees the chance to demonstrate initiative and grow their leadership skills, often highlighting talent that might otherwise go unnoticed. And promoting diverse leaders isn’t just good for morale—it’s good for business. Companies with diverse leadership teams generate 19% more revenue than their less diverse counterparts.

Improve Organizational Culture 

ERGs play a key role in building a supportive and inclusive culture. When employees feel valued and included, they’re more likely to stay, and your business becomes a more attractive place for top talent. ERGs can help shape your organizational development by driving meaningful cultural change thatboosts both retention and recruitment.

Address Issues

Unaddressed DEI issues can create a toxic environment, leading to disengagement and higher turnover. ERGs provide a structured way to surface and address these issues before they escalate. By tackling challenges head-on, ERGs help foster a healthier, more inclusive workplace culture.

How to Overcome Common Hurdles Employee Resource Groups Face

While these groups are incredibly valuable, there can be challenges. Here are a few that come up and how to mitigate them. 

Pushback from Non-Participants

ERGs focused on women or minorities can sometimes lead to discomfort among other groups, particularly white men, who might feel left out. To prevent tension and foster inclusivity, it’s important to secure visible management support for ERGs. When leadership backs these groups, they are seen as an essential part of the company’s culture rather than exclusive or divisive. Offering a variety of ERGs, including groups centered around shared interests or hobbies, ensures everyone has a space to belong. Regular communication about the purpose of ERGs is also key. When employees understand that ERGs exist to elevate underrepresented voices and contribute to a more inclusive workplace, the groups are seen in a more positive light.

Lack of Leadership

One common issue ERGs face is the burden placed on minority leaders who are already managing full-time responsibilities. This can lead to burnout and disengagement if their ERG duties go unrecognized, such as preparing for group meetings. To address this, it’s crucial to offer compensation or extra support to ERG leaders. Acknowledging the additional time and effort they put into leading these groups not only prevents burnout but also underscores the company’s commitment to DEI by showing that this work is valued and essential to the company’s success.

Difficulties with Meeting and Communicating 

For ERGs to thrive, they need more than just approval to exist—they need clear logistical support. This means ensuring access to physical or digital meeting spaces where members can connect. It’s helpful for leadership to define when and where ERGs can meet, whether that’s a reserved conference room or a designated virtual space. Additionally, clear communication and the right tools make it easier for ERGs to function effectively. Consider offering a dedicated channel on a messaging platform like Slack or Microsoft Teams can help ERGs stay organized and connected, allowing members to discuss ideas and plan events without unnecessary roadblocks. 

Strategies Companies Use to Facilitate Successful ERGs

So ERGs can make a big impact on your organization’s culture—but how do you get them off the ground? Here are a few key ways to support and facilitate these groups effectively.

1. Allow Time for Groups to Meet: ERGs shouldn’t have to squeeze in meetings after hours. Provide time during the workday for these groups to meet because their contributions benefit the entire company. By recognizing the importance of their work, you signal that ERGs are a valued part of your organizational initiatives.
2. Offer Financial Support for ERGs: For ERGs to thrive and drive change, they need financial backing. Consider providing a budget or compensating team leaders for their time. This support can help fund meaningful initiatives like hosting a workshop on inclusion or bringing in a guest speaker. Financial resources empower ERGs to create tangible improvements within the company.
3. Offer Resources: The right resources can amplify the impact of an ERG. Offer support in the form of meeting spaces, team-building activities, or event planning tools. These practical resources help groups organize effectively and expand their influence throughout the company.
4. Advertise ERGs to Employees: It’s essential that both new and current employees know ERGs exist. Make sure to promote these groups through newsletters, onboarding materials, or announcements at company meetings. When employees are aware of the opportunities ERGs provide, they are more likely to get involved and contribute to your inclusive culture.
5. Involve Executives: Executive involvement can be a game changer for ERGs. Having leadership directly support these groups not only mitigates potential challenges but also shows diverse employees that they have advocates at the top. After all, the first ERG was launched byXerox’s CEO, setting a strong precedent for leadership engagement.
6. Quickly Approve ERGs: To demonstrate your commitment, streamline the process for approving new ERGs. A quick approval process shows that leadership is serious about supporting these groups and allows them to start making an impact sooner rather than later.

Leveraging ERGs for Better Company Culture

ERGs can elevate your company culture in a variety of impactful ways. By tapping into their unique perspectives, ERG members offer valuable insights that help create a more inclusive environment. They also play a key role in boosting employee engagement by encouraging their peers to take full advantage of the benefits and resources your company provides. Here’s how you can leverage ERGs to maximize their contribution to your culture.

• Spreading Resources: ERGs are a fantastic channel for distributing resources throughout your organization and ensuring they reach the right audience. When you roll out new programs, ERGs can show employees how to make the most of them. For instance, if you introduce teletherapy services, ERG members can guide their members on how to access and benefit from this offering. They can also help educate specific groups, like working parents, on policies such as parental leave, ensuring everyone feels supported and informed.
• Networking and Mentorship: ERGs provide a built-in network for creating more inclusive mentorship programs. Employees of color, for example, may face unique challenges, such as limited diversity among potential mentors or implicit biases from colleagues. ERGs help bridge these gaps by offering a space where employees can connect with mentors who understand their experiences. Pairing new hires with mentors from their ERG can foster more meaningful, supportive relationships that help navigate company culture and overcome challenges.
• Feedback Mechanisms: ERGs are also an excellent resource for gathering feedback on how well your company’s culture and programs are working. The members can offer direct insights into the effectiveness of current initiatives and highlight areas where improvements can be made. Their input allows you to refine your goals and tailor your offerings to better meet the needs of a diverse workforce.
• Hosting Events and Workshops: Your ERGs can be a powerful force in organizing and promoting DEI-focused events and workshops. With their established connections, they can encourage broader employee participation in activities like stress management seminars, diversity challenges, or awareness campaigns. These events not only foster a stronger sense of community but also align with the specific interests and needs of the ERG’s members, making your workplace more inclusive and engaged.

Unlocking the Power of Employee Resource Groups with Wellness

Employee Resource Groups (ERGs) can be game-changers for your inclusion efforts, creating a workplace where people feel connected and empowered. With a strong ERG program, you’ll build an environment where employees are excited to show up and thrive.

Boosting DEI is just one part of the puzzle. ERGs also show employees that their overall wellbeing matters. Offering wellness programs that cater to diverse needs proves your company is serious about supporting people—mind, body, and beyond. And it works! With 98% of people saying that belonging at work drives their wellbeing, these initiatives have a huge impact.

Even better, investing in wellness drives results. A whopping 95% of companies tracking ROI on wellness programs see positive returns. Prioritizing these efforts leads to happier, healthier employees and a stronger bottom line.

Ready to create a culture where people feel amazing and perform at their best? Speak with a Wellhub Wellbeing Specialist today!

References

• Casey, J. C. Employee Resource Groups: A Strategic Business Resource for Today’s Workplace. Boston College. Retrieved November 21, 2023, from https://www.bc.edu/content/dam/files/centers/cwf/research/publications3/executivebriefingseries-2/ExecutiveBriefing_EmployeeResourceGroups.pdf 
• Goode, S., & Dixon, I. (2016, August 25). Are Employee Resource Groups Good for Business? SHRM. Retrieved November 21, 2023, from https://www.shrm.org/hr-today/news/hr-magazine/0916/pages/are-employee-resource-groups-good-for-business.aspx 
• Hastwell, C. (2023, January 7). What Are Employee Resource Groups (ERGs)? Great Place To Work. Retrieved November 21, 2023, from https://www.greatplacetowork.com/resources/blog/what-are-employee-resource-groups-ergs 
• How Diverse Leadership Teams Boost Innovation. (2018, January 23). Boston Consulting Group. Retrieved November 21, 2023, from https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation 
• Inclusive Mobility: How Mobilizing a Diverse Workforce Can Drive Business Performance. (2017, March 30). Deloitte. Retrieved November 21, 2023, from https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-inclusive-mobility-mobilize-diverse-workforce-drive-business-performance.pdf 
• Lasley, S. (2021, November 15). The Importance of Employee Resource Groups Today. EveryoneSocial. Retrieved November 21, 2023, from https://everyonesocial.com/blog/importance-of-ergs/ 
• Most Staff Would Quit Job if Employer Lacks DE&I Commitment. (2022, August 12). Fair Play Talks. Retrieved November 21, 2023, from https://www.fairplaytalks.com/2022/08/12/most-employees-would-quit-job-if-employer-lacks-commitment-to-dei-efforts-reveals-survey/ 
• Sakpal, M. (2019, September 20). CIOs should embrace DEI to build successful teams. Gartner. Retrieved November 21 2023, from https://www.gartner.com/smarterwithgartner/diversity-and-inclusion-build-high-performance-teams 
• Trigg, S. (2021, April 5). ERG: An Acronym You Should Know | TopMBA.com. Top MBA. Retrieved November 21, 2023, from https://www.topmba.com/blog/erg-acronym-you-should-know 
• 2021 State of the Employee Resource Group Report. (2023, December 2). Squarespace. Retrieved November 21, 2023, from https://static1.squarespace.com/static/5edaae2030bfe75bcae4635e/t/61b21486eefc5913a872da95/1639060632373/RJ_2021_ERG_Report_R8.pdf