There used to be lots of debate about the effectiveness of employee resource groups (ERGs.) These days, most HR experts and business analysts agree that ERGs, when managed correctly, have a positive net effect on the enterprise.
What exactly is an ERG? It’s a group of employees who meet in the workplace based on shared life experiences. The goal is to build their network, share experiences, exchange resources, and support each other. Oftentimes the ERG is comprised of employees who represent a minority within the enterprise: women, people of color, Latino/a, and LBGTQ. An impressive 90% of Fortune 500 companies have ERGs.
No doubt that employees who are part of a well-managed ERG find value in the meetings. The overall organization benefits, too. As employees in under-represented groups find a sense of inclusion, belonging, and value, they are more likely to stay with the company and some will pursue leadership roles within the organization. According to the 2018 McKinsey study “Delivering through Diversity,” companies with diverse leadership are better able to:
- Attract top talent
- Improve customer orientation
- Increase employee satisfaction
- Make better decisions
ERGs are not just for the Fortune 500, either. In fact, in small to mid-size companies, an ERG can be launched very quickly. All it may require is a conversation with the CEO, HR, and an outline of why/when/where/how/who. In larger organizations it can take a little more time. Generally speaking, the larger the company, the more likely you are to need a clear charter, schedule, budget, executive sponsorship, and answers for legal counsel regarding risk management.
One sticky question is whether or not the meetings should be open to those who are not part of the group. Operating from a standpoint of inclusiveness, our opinion is a resounding YES. It’s important for all employees to feel they can participate in the discussions, benefit from training, and lend their own opinions. In groups where the meetings are closed, suspicion generally runs high.
Momentum hosts quarterly meetings called the Women’s Resource Group Exchange. During these meetings, representatives from a diverse group of companies gather to share their experiences and resources. If interested in attending, email us for more information. ERGs require some effort to do well, but the pay-off for both employees and the enterprise can be big.