ERGs: the what, why, and how
While many ERGs (or BRGs) popped up during the pandemic, these types of employee affinity groups started in the 1970s.
With so much conversation about DEI and belonging in the workplace, and whether or not companies are moving away from these efforts, I was delighted to hear from companies on both coasts recently that are investing in these groups and their people!
You probably know what it stands for: Employee Resource Group, or Business Resource Group—the latter term placing more emphasis on the full circle benefit of employee engagement on the company.
I have helped start and serve these groups and it can be delicate. But with some proper planning ERGs / BRGs can help increase employee engagement and productivity, leading to job satisfaction and stronger bottom-line results for the company.
Benefits of an ERG
Most consider fostering a strong sense of belonging a foundational priority of ERGs. It helps employees feel seen, less alone, and that they have someone to relate to.
Beyond belonging, there are numerous upsides for employees and the employer:
Networking: an ERG can help employees connect and build relationships across the organization. Through meeting coworkers and hearing their success stories, they see that their success is possible and learn how to go about it.
Professional development: It’s a real opportunity for high performers or emerging talent to take on responsibility or get the exposure they desire to get ahead. Mentorship, either as a structured part of the program or informally, can aid career mobility and improve employee retention.
Engagement: the strong sense of belonging can help lead to stronger engagement, job satisfaction, productivity, and retention/decreased turnover, all creating a positive impact on the company’s bottom line. If an employee was starting to become disengaged, participation in an ERG could provide avenues for dialogue and support, preventing or reversing a downward trajectory or departure.
Reputation: for companies that invest in DEI efforts including ERGs, this can be a strong boost to their reputation, helping them be seen as a desirable employer or vendor of choice. No matter the labor market, good people are always hard to find so when word gets out to employees, clients, or the community about the company’s priorities, that has a lasting positive halo effect.
Marketing and Innovation
Companies use the term BRG because they see the value their diverse teams have on company business goals and success. These employee groups can provide authentic insights into how to reach their communities. Think of all the mistakes you hear about during heritage months: products or activities that fail and backfire because the company had good intentions but bad execution. Your employees can help prevent those missteps and feel valued for their input—leading to that cycle of engagement, productivity, and retention.
As consumer needs evolve, your ERG members can help you stay ahead of trends—if you let them in to be part of the process.
Where to start?
Key things to consider if you want to start an ERG:
Listen! Respond to the employees based on what they would like or need, not based on what management assumes.
Collaborate on goals and intentions up front; why are you doing it, what is the potential for employee engagement and retention, and for business profitability. Are there short-term goals vs long-term goals.
Don’t try to be all things to all people. Start small and consider a pilot program as you figure out what works, knowing that different ERGs may have different needs and interests.
Devote some resources. Beyond budget, which senior leader(s) will devote time and attention to speaking with and supporting these groups?
Clarify accountability: who organizes the team, who do the ERGs check in with and who from management can make sure they aren’t off on an island, so these efforts do not backfire?
If you set goals around metrics or outcomes, then measure success or check in once or twice a year. Did someone collaborate on a project or find a new opportunity because of the ERG? Share that success!
Certainly, if the company already has DEI initiatives these should be intertwined. But also have them intersect with business leaders, not just human resources. Ideally, the groups have sponsorship from the highest level of the profit centers as possible.
Pitfalls?
Watch out for the demands on the ERG leaders or members. When I speak to employees, for some, the work is after hours or during lunch, not part of their normal workload. Still, it can be a teachable moment for negotiating and setting boundaries.
Avoid silos. Make sure others know the outcomes of the ERGs, how they are making a difference within employee engagement or on the business so others not part of the ERG support the effort.
Deliver what you promise. Again, if you start small, then you will be able to deliver. Setting too bold of an agenda and not being able to meet it will backfire.
Don’t assume race and ethnicity are the only groups. Caregivers, veterans, working parents, and remote employees are just a few examples of how groups have organized.
Make sure the ERG leaders are well informed on company guidelines and policies around gatherings, budgets, off-sites, and internal procedures. People really do not memorize that employee handbook!
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