Employee Organizations : Only Doing It if You’re Doing It Right
Employee Resource Groups (ERGs) (Sometimes referred to as Networks - ERNs) are internal groups formed within establishments in which there are shared characteristics. Some example characteristics include sexual orientation, gender identity, race, religion, and ability. There is no mold for size, structure or priorities for ERGs, giving groups the opportunity to define their own goals and identify their needs. ERGs bring major benefits to individuals and the organization as a whole, but doing it wrong could cause more damage than good.
Benefits to Members
It may seem obvious to onlookers and members of ERGs that there are benefits to joining, but there are far more reasons than one would think.
Community:
Frequently under-represented groups can have difficulty finding others to relate to, particularly in their day-to-day teams. ERGs provide a safe space to meet and connect others who share commonalities. Maybe relax. Maybe fight for change.
Education & Awareness:
With some topics and issues being more relevant to or more prevalent in some groups, individualized attention can be provided via these organizations.
Mentorship:
Having someone who has experience in an organization to talk to and seek guidance from is an invaluable resource for minorities in large organizations.
Specific Resources:
Different demographics have different needs. Motherhood support groups, transition assistance, gender neutral bathrooms, elevators and event sponsorship are a few examples. These specific resources may have been identified or supported by ERGs, but all individuals in the organization have access to these resources, member or not.
Network:
ERGs provide networking opportunities across the organization and across titles, shared by members and allies.
Be Heard - as a group:
Being the only person in the room experiencing something, surrounded by individuals who are not or do not have to, can be intimidating. If the others cannot relate, how could they understand? Having somewhere to reflect and connect with leadership support opens the doors to progress.
Respect & Representation:
As a minority, it can seem as though one has to fight for mutual respect. ERGs show individuals that their diversity makes them a part of a group, connecting professionals and members with others like them where they will not be separated for their differences, but welcomed for their commonalities. What sets them apart from everyone outside of the group is what makes them belong, providing clarity beyond differences and highlighting others like them who are leaders, respected throughout the company.
Benefits to the Organization as a Whole
The list of benefits of ERGs to the greater organization is extensive and ever-growing. Here are some additional benefits to consider…
Business Benefits: Statistics to Know (Fundera)
Companies that have a highly inclusive culture have 2.3x more cash flow per employee.
Inclusive companies are 120% more likely to hit financial goals.
Diverse teams are 70% more likely to capture new markets.
Diverse teams are 87% better at making decisions.
Inclusive companies are 1.7x more innovative.
Improvement & Development:
ERGs help leaders identify & address concerns of under-represented groups that may not have previously had the ability to bring them to the table or take action, making the organization overall a better place to work.
Happy Makes Happy:
A positive atmosphere brings positive results. No one wants to do business with or for unhappy individuals. Beyond this, unhappy individuals do not contribute to their full capacity nor empower others to achieve their full potential. It is hard to take pride in work for somewhere that may not take pride in employee identities.
Inclusiveness = Retention:
Individuals who feel safe and a part of a community are more likely to want to contribute to the success of the organization and bring others in. Individuals who
Public Perceptions:
As a public or private organization, perceptions matter.
Be they for a stock market rating or the success of the organization, showing shared values with society is impactful. So impactful, in fact, that in recent years companies and customers have made the decision to in some instances prioritize company values and contributions over price or offering.
Visibility:
Increase diverse visibility by working with organizations in the diversity space. This attracts both potential clients and employees or members who would not have known about the organization or may be driven by their common values.
Doing it RIGHT
Unfortunately, while it seems everyone is doing it, it is abundantly clear that not everyone is doing it right. This is a deterrent. According to McKinsey, poor ERG programs make individuals feel even less included than none at all.
Today, 14% of companies have nothing in place or on an ad hoc basis DEI program. Only 47% have transformative programs that are innovative and set up for success, aligning with business strategy, McKinsey also highlights.
In a study done by Great Place to Work of companies with ERGs…
100 percent of executive sponsors felt their company leadership encouraged ERG participation, while 52 percent of ERG leaders thought that was true.
Only 40% of ERG leaders believe involvement supports career advancement”
Amongst ERG leadership, 76% feel a sense of belonging at work.
This should be glaring. If almost ¼ of the individuals identified as leaders and champions of change feel a sense of belonging, knowing the efforts being made and steps being taken, what is telling them to keep moving forward? Hoping they can make the change before burning out? Hoping the members are getting that out of the organization?
With unrecognized efforts and budgets lower than the coffee machines, it is clear how leaders in ERGs can be discouraged.
How To
There are many companies that are already doing it. There are proven methods to make it right!
Open Your Arms:
Contribute to the belonging of employees simply by supporting and acknowledging their diversity, providing flexibility to contribute to the creation of and be a part of ERGs.
Attract:
You attract what you put forward, targetted, diverse recruitment efforts will increase diversity on the front end, intending to bring in a diverse candidate pool. Promoting inclusivity shows potential applicants that there will be somewhere for them to fit in, improving their confidence and likelihood to apply as a minority.
Walk the Walk:
Promote inclusive language, provide resources needed, ensure accessibility, host events, purposefully recruit, support and partner with external organizations.
Educate, Educate, Educate:
Make sure everyone from your L team to your entry level employees understand 1. The availability of these groups 2. The benefits to them, their teams and the organization 3. That inclusion is a top priority.
Celebrate!
Diverse events & holidays, achieving diversity goals, individuals breaking through.
Make it Official:
Support the groups by incorporating them into organizational strategy, allocating mentors, marketing, and budgets, in addition to other potential resources. Potentially even creating defined roles in the ERG space.
Listen:
The needs of a group cannot be identified or depicted by external observation. Hear employees spearheading the creation of networks, understand the goals and objectives of the leader and group
Leadership experience is leadership experience.
Empower leaders who have proven their ability in the ERG space to advance.
INCENTIVISE!
There are only benefits. Encourage membership. It can be a lot of additional work for network leaders, but the benefits to the organization are clear. Uplift these champions of change and give them reasons to want to lead.
Break the stigma of uplifting under-represented communities that exists because there are over-represented groups. Social sustainability is sustainability, without it we will not make our way into a sustainable world.
Thank you for reading. Check back in our news room for relevant updates and industry insights.
sourceshttps://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/effective-employee-resource-groups-are-key-to-inclusion-at-work-heres-how-to-get-them-righthttps://www.betterup.com/blog/employee-resource-grouphttps://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/employee-resource-groups-create-a-sense-of-belonging.aspxhttps://www.greatplacetowork.com/resources/blog/new-research-shows-leaders-are-missing-the-promise-and-problems-of-employee-resource-groupshttps://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-mattershttps://www.forbes.com/sites/forbestechcouncil/2021/11/12/how-diversity-can-help-with-business-growth/?sh=4779b9e152adhttps://www.fundera.com/resources/diversity-in-the-workplace-statistics#:~:text=Companies%20with%20equal%20men%20and,87%25%20better%20at%20making%20decisions.https://www.weforum.org/agenda/2019/04/business-case-for-diversity-in-the-workplace/