Employee resource groups: what are they?

Employee resource groups are voluntary, employee-led groups that promote a sense of belonging and support inclusivity within the workplace. An ERG typically focuses on supporting employees who share a common identity.

When setting up an ERG, you might choose to focus on:

• Race
• Religion
• Nationality
• Gender
• Sexual orientation
• Disabilities and mental health issues
• Social or economic causes

ERGs can also be formed around interests or hobbies, like sustainability or running. Regardless of their specific focus, however, the main goal of an ERG is to improve employee wellbeing and contribute to the success of your business as a whole.

In our article on what DEIB+ means and how to do the work, we found that it is important to remain agile and consider the various perspectives and lived experiences that shape a business approach. This may include areas such as employer branding, customer, client and stakeholder relationships, professional growth opportunities and learning tools.

ERGs fall under this umbrella too. The collective insights they generate can lead to more inclusive and effective business practices.

Why do you need employee resource groups?

Although ERGs are set up by the employer, they are fundamentally an employee-driven initiative. This is what empowers the group to bring about real change in the workplace and build a more inclusive environment; ERGs are not just another top-down company initiative, but a way for employees to make their voices heard.

For underrepresented groups, ERGs offer access to support, guidance and a sense of community that may be lacking in the workplace. They provide a space to talk about shared experiences and challenges, as well as a platform to drive change within the company.

ERGs can also help employers connect with employees on a more personal level and better understand the inequities that their employees face. In turn, this allows employers to create targeted policies and initiatives that directly address the needs of their workforce.

Some of the main functions of an ERG include:

• Providing a platform for group members to share concerns
• Connecting group members with mentors and organisational support
• Spreading awareness of how a certain identity intersects with workplace issues
• Increasing cultural awareness among staff
• Helping all employees feel accepted and valued
• Increasing employee engagement and overall job satisfaction
• Helping employers discover employees with good leadership potential
• Fostering better relationships between new and existing employees
• Providing professional development opportunities

If you align your ERG with the mission, objectives and values of your organisation, it can have a profound impact on the workplace as a whole. By leverage the unique perspectives of underrepresented employees to create a more diverse and inclusive environment, you foster a culture of belonging, innovation and mutual respect that benefits everyone in the organisation.

The benefits of starting an ERG

At their core, ERGs are designed to support your employees. Their primary aim is to enhance job satisfaction and wellbeing by fostering a sense of belonging and helping employees feel valued in the workplace. This, in turn, positively impacts productivity, as employees who feel supported and appreciated are more likely to be engaged and motivated in their work.

ERGs can also have a number of benefits for your business, however. They can assist with:

Building future leaders

Employee resource groups are an excellent source of community and support for your employees — but they shouldn’t be limited to a simple support group. The best ERGs also offer professional development opportunities, such as workshops and speaker series, which can help employees build the skills they need to progress in their careers.

By nurturing talent within your ERGs through mentorship, development and leadership training, you can help to build a more diverse and inclusive leadership pipeline for your company.

Attracting a diverse workforce

In today’s competitive job market, potential employees are looking for more than just a salary; they want to work for an organisation that values diversity and inclusion, and that is committed to making a positive difference in the world.

An employee resource group can be a powerful tool for attracting top talent from a diverse range of backgrounds, as it demonstrates your company’s dedication to inclusion.

Gaining awareness of inequities

ERGs give underrepresented groups a voice; they provide an opportunity to see, understand and respond to the issues faced by employees within your company. This can be invaluable for uncovering inequities that would otherwise go unnoticed and for developing solutions to address them.

In our expert guide to how to become more diverse and inclusive as a business, we explain how resource groups (such as for underrepresented genders) can create an environment where employees can also discuss their own professional challenges and barriers. 

Through ERGs like these, employers can learn about the challenges their employees face in their professional growth – and provide them with the right tools to overcome them. This could include learning more about what supports neurodiverse employees need, such as reducing sensory stimulation or speech-to-text tools.

Revealing potential DEI strategies

Your employees can be your most valuable asset, especially where DEI (Diversity, Equity and Inclusion) is concerned. They have a front-row seat to the company’s culture, and they understand what’s working well — and what needs to be improved. ERGs can gain valuable insights into potential DEI strategies that your company could adopt. 

You might ask certain groups to consult over outreach strategies, for example, or to help design training courses that target specific areas of improvement.

Learning and development (L&D) programmes and tools can work with an employee’s unique skill profile. This involves identifying their own strengths, weaknesses, particular learning styles and where there could be untapped potential. However, consider creating professional development groups for any training programmes an ERG has developed.

Furthermore, ERGs can help employers to analyse controversial technology and whether it is a help or hindrance to their employees. As we found in our guide to AI and diversity and inclusion, there is much discussion over whether some AI tools are discriminatory, or whether AI DEI workplace communications tools are the future for inclusive messaging practices. 

Employee retention

Finally, ERGs are one of the most effective ways to retain your employees by keeping them happy, engaged and committed to your company. Employees who feel supported and valued are more likely to stick around, which reduces costs associated with recruiting and training new staff.

Different types of employee resource groups

In general, there are four main types of ERG:

Diversity and inclusion (D&I) ERGs are designed to help an organisation become more diverse and inclusive. They typically focus on race, ethnicity, gender, sexual orientation, religion and disability.

Volunteer ERGs help employees get involved in volunteering and giving back to the community, with a focus on causes that relate to the organisation’s mission or values.

Affinity ERGs are based on shared interests, hobbies or demographics, and provide a way for employees to connect with each other outside of work. Examples include veteran’s groups, young professional groups and LGBTQ+ groups.

Professional development ERGs are designed to help employees grow and develop in their careers. They may offer networking opportunities, workshops and mentorship programmes.

The type of group that is right for your organisation will depend on your specific needs and goals. If you are looking to improve diversity and inclusion, then a D&I group might be a good fit. If you want to encourage skills development, a professional development group could be a better option.

How to support your employee resource groups

Wondering how you can support ERGs in your organisation? Here are a few ideas:

• Create a solid plan: Work with your HR team to create clear, concise documentation so that it’s easy for employees to understand what employee resource groups are, what their purpose is, and how to start one of their own.
• Provide financial support: Allocate a budget for ERGs to host events, professional development workshops and networking opportunities for members. Review your company’s overall budget and aim to set aside a percentage each year towards ERGs.
• Track progress: Help your ERGs set up document management systems to keep up with reporting requirements and measure their impact in the workplace.
• Offer executive sponsorship: Leaders within your company can advocate for ERGs, acting as liaisons between the group and company decision-makers. This helps bridge communication gaps to ensure that ERGs are being heard.
• Advertise events: Raise awareness on ERG events and activities through internal channels such as your intranet or company newsletter. You might also offer up space in the office for ERG meetings and events.
• Encourage participation: Make it easy for employees to get involved by providing clear information about ERGs and their benefits. Include details of existing ERGs in your employee handbook to raise awareness and encourage participation.

Supporting ERGs can have a positive impact on your workplace culture. By implementing these strategies, you can help foster a thriving environment for employee resource groups within your organisation.