Employee Resource Groups

The fundamental aim of an employee resource group is to support underrepresented employees in the workplace. To achieve this, ERGs foster diverse, inclusive, community-centric workplaces that provide personal and professional support to members.

Aspect	Explanation
Definition	Employee Resource Groups (ERGs), also known as Affinity Groups or Business Resource Groups, are voluntary, employee-led associations within an organization. These groups are formed based on shared characteristics, backgrounds, interests, or experiences, such as ethnicity, gender, LGBTQ+ identity, disability, or common hobbies. ERGs provide a platform for employees to connect, support one another, promote diversity and inclusion, and contribute to the organization’s goals and culture. They play a vital role in fostering a sense of belonging and representation in the workplace.
Key Concepts	– Voluntary Membership: Participation in ERGs is voluntary, and employees join based on their affinity or interest. – Inclusivity: ERGs promote inclusivity and aim to create a sense of belonging for all employees. – Networking: They provide opportunities for networking, mentorship, and professional development. – Advocacy: ERGs often engage in advocacy efforts, both internally and externally, to raise awareness and drive change on diversity and inclusion issues. – Community Building: They foster a sense of community among members who share common experiences or backgrounds.
Characteristics	– Diverse Membership: ERGs consist of employees from diverse backgrounds, fostering a rich tapestry of perspectives. – Employee-Led: ERGs are typically led by employees who volunteer to organize activities and initiatives. – Supportive Environment: They create a supportive environment where employees can discuss challenges and celebrate successes related to their identities or interests. – Impactful Initiatives: ERGs often undertake initiatives that promote diversity, equity, and inclusion within the organization and the broader community. – Open to Allies: While primarily formed around specific identities, ERGs are often open to allies who support their mission.
Advantages	– Diversity and Inclusion: ERGs contribute to a more diverse and inclusive workplace by promoting awareness and understanding of various perspectives. – Employee Engagement: They enhance employee engagement, satisfaction, and retention by providing a sense of community and belonging. – Professional Development: ERGs offer opportunities for skill development, mentorship, and leadership roles. – Advocacy: They can influence organizational policies and practices to align with diversity and inclusion goals. – Recruitment and Branding: ERGs can enhance an organization’s reputation as an inclusive employer, attracting top talent.
Drawbacks	– Resource Intensive: Managing ERGs can require significant time and resources from both employees and the organization. – Exclusivity Concerns: There may be concerns that ERGs, if not managed inclusively, could unintentionally create exclusivity. – Alignment: ERGs’ goals and initiatives must align with the organization’s broader mission and diversity and inclusion strategies. – Balancing Act: Striking the right balance between autonomy for ERGs and organizational oversight can be challenging. – Perceived Favoritism: If not managed well, ERGs may be perceived as receiving preferential treatment.
Applications	– Networking and Support: ERGs facilitate networking and support among employees with shared identities or interests. – Cultural Awareness: They promote cultural awareness and education through events, workshops, and celebrations. – Advocacy and Education: ERGs engage in advocacy efforts, education, and awareness campaigns to promote diversity and inclusion. – Mentorship: Many ERGs offer mentorship programs to help employees advance in their careers. – Community Involvement: They often engage in community service and outreach activities to make a positive impact beyond the workplace.

Table of Contents

Understanding employee resource groups

Employee resource groups (ERGs) are voluntary, employee-led teams whose objective is to create a diverse and inclusive workplace culture.

Those involved in employee resource groups tend to share common traits such as gender identity, religious affiliation, ethnicity, socioeconomic background, parental status, or some other demographic characteristic. ERGs can also be set up for employees in specific roles such as remote employees or working parents.

While ERGs work to represent those whose needs may be less accounted for in company policies, they are by no means exclusive.

Employee resource groups help underrepresented members connect with others in the organization, share their culture or values with others, and raise awareness around important issues.

Studies have also shown that the diversity ERGs advocate encourages radical innovation since employees feel more comfortable sharing ideas.

How to create an employee resource group

Here is a brief look at the steps required to create an ERG:

Assess employee interest

Before an organization commits to an ERG, it is important to determine whether there is sufficient employee interest to maintain one.

Questionnaires or employee demographic data can be useful here.

Obtain executive buy-in

ERG leaders must be able to explain the purpose of the group to executives and use data to prove there is sufficient need.

They must also create a plan for how the ERG will be run to secure funding for activities.

Define the ERG’s mission

Like a company mission statement, one or two sentences should clearly and concisely state the purpose of the ERG and why it matters.

Recruit members

Aside from obvious candidates, leaders must also decide whether the ERG will accept allies.

These are members who do not identify with an underrepresented group but who are nonetheless passionate about diversity and inclusion.

Host the first meeting

This is a good time to establish goals, decide on the causes the ERG will support and brainstorm ideas for activities or events.

While there are no formal rules in an employee resource group, it can be prudent to nominate a leadership committee to manage the group – especially once it reaches a certain size.

Maintain organizational support

To ensure the longevity of the ERG, it must have the continued financial support of senior management.

Group leaders must be able to work collaboratively with their superiors to explain how the ERG is impacting the organization for the better.

Employee resource group examples

We will now conclude by mentioning three companies that utilize ERGs in the workplace:

Hilton

With over 170 nationalities represented in its workforce, Hilton has nine employee resource groups which the company calls Team Member Resource Groups (TMRGs).

Groups exist for various minorities and there is also support for military veterans and those with visible or invisible disabilities.

AT&T

Telecommunications company AT&T considers ERGs to be “the cultural lifeblood of our organization” with 26 groups comprised of almost 89,000 members.

Groups include Faith@Work to foster religious diversity and FACES, established in 1985 and otherwise known as the Filipino American Communications Employees.

HSBC

Banking and financial services company HSBC utilizes ERGs to facilitate open discussion of workplace issues and create a culture that celebrates diversity.

Examples include the Nurture group for caregivers and AHERG for those with African heritage.

Key takeaways

Employee resource groups (ERGs) are voluntary, employee-led teams whose objective is to create a diverse and inclusive workplace culture. While ERGs work to better represent those who may not be accounted for in company policies, they are by no means exclusive.
To create and sustain an ERG, there must be sufficient employee interest and support from the organization. Once these points have been satisfied, the group should develop a mission statement, recruit members, and host meetings to discuss objectives and plan events or activities.
Some well-known companies that provide support for multiple ERGs include HSBC, Hilton, and AT&T. In addition to racial minorities, there are also groups for military veterans, caregivers, and religious diversity.

Key Highlights

ERG Definition: Employee Resource Groups (ERGs) are voluntary, employee-led teams formed within organizations to foster diversity, inclusivity, and support for underrepresented employees.
Diverse Traits: ERGs encompass individuals who share common traits such as gender identity, religious beliefs, ethnicity, socioeconomic background, parental status, and other demographic characteristics.
Inclusivity and Allies: While ERGs focus on underrepresented groups, they are not exclusive. Many ERGs welcome allies—individuals who don’t identify with the underrepresented group but support diversity and inclusion efforts.
Objectives and Benefits: ERGs serve various purposes, including connecting employees, sharing cultural insights, addressing important issues, and providing a platform for networking. Diversity promoted by ERGs encourages open communication and idea sharing, fostering radical innovation.
Creating an ERG:
- Assess Interest: Organizations gauge employee interest through surveys or demographic data.
- Executive Buy-In: ERG leaders secure support from company executives by demonstrating the group’s significance and need through data.
- Mission Definition: ERGs craft clear and concise mission statements outlining their purpose and contributions to the organization’s culture.
- Member Recruitment: ERGs attract members who align with the group’s focus and objectives.
- Initial Meeting: The first ERG meeting establishes goals, identifies causes for support, and generates ideas for activities or events.
- Leadership Structure: As ERGs grow, they might establish a leadership committee to manage activities and responsibilities.
- Organizational Support: ERG sustainability depends on continued financial and resource support from senior management.
Prominent Examples of ERGs:
- Hilton: Hilton’s Team Member Resource Groups (TMRGs) represent over 170 nationalities, fostering inclusivity for minorities, veterans, and disabilities.
- AT&T: AT&T boasts 26 ERGs with nearly 89,000 members, focusing on diversity themes like religious diversity and Filipino American Communications Employees.
- HSBC: HSBC utilizes ERGs to encourage discussions on workplace issues and to celebrate diversity. Their ERGs cover topics such as caregivers and African heritage.
Long-Term Impact: ERGs contribute to a diverse, inclusive, and supportive workplace culture, enhancing employee morale, engagement, and retention.