More and more large companies are understanding the importance of the social factors of management. Supporting employees who are part of underrepresented groups can happen in a number of ways. One of them is the creation of employee resource groups.
What are they?
Employee resource groups (ERG) are groups in which a person joins on a voluntary basis. They are led by and bring together employees who share an interest in a particular aspect of diversity. The most popular groups support women, LGBTQ+ employees, employees from different ethnicities or specific communities. Other examples include networks based on age, ability, parental status, religion or even mindset.
ERGs are also known as affinity groups, employee networks, business resource groups, or people networks. These different names suggest the shift in attitudes and how ERGs help both their members and the organization.
Not all groups that bring employees together are considered ERGs. The key question is whether the group was disadvantaged and faced additional barriers in the workplace and in life.
Why are they needed?
ERGs serve as a resource for their members, promote diversity and inclusion, and drive business results for the organization.
Each group can have different goals, play different roles and bring different benefits depending on the organizational and societal context and what the members and the organization itself need.
Key benefits for members include a shared community, the opportunity to make the workplace more inclusive, leadership development and skill building, career advancement and visibility. Key benefits to the organization are increased employee engagement, support for achieving diversity, equity and inclusion goals, talent pool, customer insights, business innovation and community connections.
How does ERG fit into diversity and inclusion policies?
If properly organized, ERGs are an important part of the diversity, equity and inclusion work of the organization. This includes work related to the people employed, but also work related to the customers and communities in which the company operates. Companies that have diversity and inclusion policies in place have been proven to be more profitable and profitable.
ERGs can help improve performance at various levels of the organization, organize mentoring and leadership development programs, or initiate policy change that benefits all employees. In terms of external work, employee networks can be used to develop services and products and build corporate social responsibility.
