Employee resource groups (ERGs) are not only essential for creating a positive, inclusive employee experience, but their existence has the potential to attract top talent and position your business as a leader. Making sure ERGs have a clear structure, that they’re able to collaborate and participate in decision-making is key to creating meaningful change.
What is an Employee Resource Group?
Employee resource groups are voluntary groups that provide a formal structure aimed at supporting employees’ unique needs and identities, as the Canadian Centre for Diversity and Inclusion (CCDI) explains. They aim to build support and community within organizations and provide opportunities for learning and feedback. They also drive change within their companies.
Within Canadian companies, says the CCDI, ERGs have formed around dozens of “personally identifying characteristics” or diverse groups focused on LGBTQ+ employees, visible minorities, Indigenous employees, working parents or people with disabilities, to name a few. Financial institution BDC, for example, has six ERGs with 10 to 30 employee members that have worked to foster conversations around Indigenous issues and put sign language interpretation in place in the company, as standard.
At Indeed, 10 ERGs, called Inclusion Resource Groups work to spark discussion and support employees, including Access Indeed, which focuses on education and awareness around inclusion for visible and invisible disabilities and All Generations Empowered.
The Business Case for ERGs
Across many companies, ERGs have been successful in raising issues in the workplace and providing input and creating change on policies affecting diversity and inclusion. They also create a workplace culture that engages employees, improves retention and attracts a diverse workforce.
The importance of effective ERGs in the workplace becomes increasingly clear in light of social inclusion statistics. According to StatsCan data , individuals in minority groups are half as likely to be represented in decision-making roles in Canadian public sector institutions and businesses. In both minority and non-minority communities, men are twice as likely than women to be in senior management positions.
Of course, simply establishing ERGs is one positive step – but ensuring their success will take further action. Here are a few ways to ensure your ERGs are working towards supporting a diverse workforce:
Ensure ERGs are involved in decision-making
In an inclusive workplace, says LaFawn Davis , vice president of Diversity, Inclusion and Belonging at Indeed, everyone is encouraged to contribute fully and thrive.
“Employee Resource Groups (ERGs) are one example of how organizations can take action to help underrepresented minorities feel included and give them a voice,” she says.
As such, in order to help their companies foster greater inclusion, managers need to give life to their ERG teams, Davis tells Medium .
Employees in ERGs viewed as effective, McKinsey data shows, report an 83% inclusion score. However, in situations where workers feel their ERG is ineffective, inclusion scores fall to 59%.
“Think of ways to transform your Employee Resource Groups into authentic business resources,” says Davis. “Give your ERGs a seat at the table, and leverage them during key business decisions such as product creation — including accessibility from concept to launch.”
At BDC for example, director of diversity, equity, and inclusion Steve Yan notes that success for their ERGs means making sure the groups are not just social clubs for employees, but that they serve a purpose beyond just meeting – that employees are actually being heard.
Structure ERGs for success
The presence of ERGs in an organization is a move in the right direction – but driving change, education, and ultimately retention and company growth means having resource groups that are less ad hoc and more formally structured.
For many companies, this means ensuring ERGs have access to the required funding and have a clear goal and mission. It also means they are able to engage and communicate with employees and have the ability to track membership and outcomes, says McKinsey .
Organizations may also want to consider remunerating employees who dedicate time to running an ERG outside of their regular role. As one recent survey found , only 5.6% of companies say they compensate ERG leads, although nearly 30% of HR professionals say their companies are considering compensating in future.
Focus on intersectionality
Having multiple ERGs operating in one company is not a unique setup – but ensuring they work collaboratively will ensure their initiatives work within the larger diversity, equity and inclusion strategy. An intersectional approach will also enable employees who identify with more than one ERG to feel heard and bring initiatives forward that acknowledge all team members.
As equity expert and co-founder of Feminuity Dr. Sarah Saska tells Bay Street Bull in an interview, as they are generally designed around, and support, only one aspect of an employee’s identity, ERGs do not usually create sufficient space to acknowledge individuals with several marginalized identities.
“Intersectionality tells us that companies should make a concerted effort to encourage collaboration between ERGs so they can create more intersectional programming and all team members can be included and seen in their activities,” says Saska.
Implementing ERG management software may be one way to facilitate this task. A number of tools on the market are designed to help companies centralize ERGs on one dashboard, connect members and measure impact.
Having ERGs in place is the first step to ensuring team members feel supported and their voices are heard within an organization. Making sure ERGs are connected, well structured and part of the decision-making process will ensure they are able to drive real change for all employees.
