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Starting Employee Resource Groups: Fundamentals & Best Practices

Author: Arnav Lahiry

Employee Resource Groups (ERGs), also known as affinity groups, are voluntary, employee-led groups, typically based on shared characteristics or life experiences, such as gender, ethnicity, or interests. ERGs provide a space for employees to connect with colleagues, offer chances for leadership and development, and create cultures of inclusion and belonging. They can also be an effective way to increase employee engagement and participation in volunteering and giving programs.

 

Main Takeaways

  • ERGs play a crucial role in promoting diversity and inclusion within organizations by providing a platform for employees to connect, share experiences, and advocate for their needs.
  • Young employees have a demand for these spaces, with 86% of Gen Z respondents to a survey saying they expect companies to have ERGs or DEI strategic working groups they can actively participate
  • Establishing a successful ERG requires careful planning, support from leadership and passionate employees, and clear guidelines to ensure inclusivity.
  • Effective ERGs can lead to improved employee engagement and retention by creating a sense of belonging and providing opportunities for professional development.
  • Employee resource groups and ERG champions can be valuable partners for CSR teams in driving engagement and leading social impact initiatives.

 

ERG Basics

History

ERGs and affinity groups began forming back within companies in the 1960s as a response to the social justice movements at the time and the need for minority representation in the workplace. Over the years, they have evolved to address a wide range of employee needs and interests, becoming an integral part of many organizations’ inclusion efforts.

Purpose

Employee resource groups enable employees with shared interests to come together to support each other and learn from one another. The primary purpose of ERGs is to create a supportive environment where employees can connect, share experiences, and advocate for their needs. They also serve as a platform for professional development and community outreach, helping to foster a more engaged workforce.

Benefits

ERGs offer numerous benefits, not only supporting individual employees to feel empowered, but also adding value to an organization. This can take the form of increased employee engagement, improved retention rates, and a stronger sense of belonging. Additionally, the perspective and expertise from employees in different affinity groups can provide valuable insights to companies on diversity and inclusion issues, helping to shape policies and practices that support a more cohesive and collaborative workplace.

 

Setting the Foundation for Groups

Prerequisites for Introducing ERGs to the Workforce

  • Strong leadership commitment is essential to ensure that all ERGs have the support and resources they need to succeed.
  • Clear objectives and goals help to define the purpose and direction of the various ERGs, ensuring that they have the necessary autonomy to operate from within and the power to effectively contribute to the organization’s diversity and inclusion strategy.
  • Any potential resources and budget that may be needed to establish and grow ERGs must be scoped out by a business ahead of time. This could be to fund events and outreach efforts or tools to manage and house ERGs.
  • Employee interest and participation are crucial for the success of the ERG. Companies should gauge how much excitement there is from employees and how to rally this enthusiasm to help drive engagement in the groups.

Quick Assessment: Is Your Organization Ready for ERGs?

  • Does your organization have a workplace culture and inclusion strategy that will enable the establishment and growth of ERGs?
  • Are there employees interested in leading or participating in an ERG, and do they have the necessary skills and commitment to drive the group’s activities?
  • Is there support from senior leadership, including executive sponsors who can advocate for the ERG and help secure resources and support?
  • Are there resources available to support ERG activities, including budget, meeting spaces, and technology tools?

 

Steps to Starting Employee Resource Groups

Building a Business Case

  • Gather data and employee sentiment to understand the needs and interests of your workforce and to build a compelling case for the establishment of different ERGs.
  • Calculate potential ROI and business impact by identifying the benefits that ERGs can bring to the organization, such as improved employee engagement, retention, and performance.
  • Build a compelling presentation for leadership that outlines the benefits of the ERG, the resources needed, and the potential impact on the organization.

Securing Organizational Buy-In

  • Find and approach executive sponsors who can advocate for ERGs and help secure the necessary resources and support.
  • Present the benefits of ERGs and demonstrate the potential return on investment to the stakeholders involved in approving such a project.
  • Get HR and legal buy-in by ensuring that the ERG’s activities and initiatives align with the organization’s policies and practices and by addressing any potential compliance issues.

Structuring Your ERGs

  • Identify the specific groups that your workforce is interested in creating or engaging in by asking employees and finding employee champions for each one.
  • Consider how to best develop a leadership structure and assign responsibility to employee champions across the various roles involved in managing an ERG, whether it be President, Secretary, Treasurer, Event Coordinator, Membership Lead, or Communications Manager.
  • Put together an ERG charter that outlines the ideal purpose, objectives, and governance structure of a group, providing a clear framework for employees to build upon.
  • Create any necessary oversight mechanisms to ensure that the ERGs continue to operate in a way that aligns with the organization’s overall strategic goals.

Goal Setting and Planning

  • Set goals and KPIs to define each ERG’s objectives and to measure its progress and impact. These could include membership growth goals, a desired number of events or meetings, engagement survey results, or involvement in related giving and volunteering opportunities.
  • Plan out an annual activity calendar to schedule upcoming ERG initiatives, ensuring that they align with the group’s objectives.
  • Budget and allocate resources to support all the ERGs’ activities, such as events and meetings, or outreach and engagement campaigns.
  • Identify technology and tools needed to support ERG activities, such as communication platforms, project management tools, and data analytics tools.

Launch & Implementation

  • Market your new ERGs internally to raise awareness and generate interest among employees, using channels such as an intranet, company meetings, or emails from leaders.
  • Develop a first 90 day action plan to guide the promotion and initial activities of ERGs to ensure that they get off to a strong start.
  • Organize kickoff events to launch each ERG and to connect employees, providing opportunities for networking, learning, and collaboration.
  • Implement member recruitment strategies to attract and retain members, such as professional development opportunities or incentives to engage in events.

Measurement and Long-term Success

  • Track the key metrics identified in the goal setting and planning phase for each ERG.
  • Measure the wider impact of ERGs on workplace culture, by capturing data and sentiments around employee engagement, retention, and job performance. This can demonstrate the value of affinity groups to the organization and bolster future conversations on budget or securing greater leadership buy-in.
  • Ensure ERGs can continue to scale and grow by offering the resources they need and building strong partnerships between groups and other stakeholders in the organization.

Leveraging Tools & Software

Purpose-built software and tools can help you manage your employee resource groups efficiently. Platforms like CSRconnect that house employee resource groups offer a centralized location for employees to find groups, help maintain structure, avoid the need to build out in-house communication or tracking functionality, as well as connect your ERGs to your company’s employee giving and volunteering initiatives.

Connecting affinity groups with the charitable causes that are most important to their members can be a fantastic way to increase engagement in fundraising or giving campaigns. It can also be an effective method to identify employees for skills-based volunteering. For instance, members of a ‘Women in STEM’ ERG may be uniquely qualified to support a charity that is looking for volunteers that can provide mentorship to girls in school looking to get into STEM fields.

 

Quick Tips to Level Up Your ERGs

  • Develop education or training processes on ERG leadership to prepare for transfers in responsibilities within groups, and to provide employees with professional development opportunities.
  • Foster cross-functional collaboration between employee resource groups and departments to partner on employee engagement, inclusion, or giving and volunteering initiatives.
  • Consider strategies to support remote and hybrid employees who may be interested in participating in ERGs through virtual meetings, online communication channels, and an inclusive lens on engagement.

 

Capgemini Employee Resource Groups Case Study

During the pandemic, Capgemini employee resource groups experienced greater attendance and event participation, despite the tough times. Capgemini’s CSR team attributed this success to the influx of social events and meaningful wellness opportunities that provided employees a safe place to check-in and relate with one another.

Pulling ERG stats through their employee engagement platform, YourCause CSRconnect, Capgemini discovered that the ERGs were tracking more volunteering hours than any year before, were being promoted throughout the company two times more than normal, and were retaining members at an 8% higher rate.

To recognize the exceptional efforts of ERG leaders and ambassadors, Capgemini introduced its first ERG Awards, featuring categories such as ERG of the Year and several individual awards like Rockstar Rookie, Creative Changemaker, and Executive Sponsor of the Year. The awards celebrated the hard work of Capgemini employees in fostering a sense of community and making a positive impact.

Check out the full story here!

How YourCause Can Help

YourCause is uniquely positioned to help organizations make the most of their employee resource groups and connect their inclusion and belonging practices with social impact. Learn more about how we can support your ERG initiatives. Our platform provides the tools and resources needed to manage affinity groups, increase engagement, and tie groups to the causes they care about – all while tracking progress and measuring impact.