Employee Resource Groups 101: How ERGs Can Benefit Your Business
Employee Resource Groups (ERGs) are key to creating a workplace where everyone feels included and valued. This guide explains what ERGs are, why they matter, and how they can help your business thrive. By understanding the benefits of ERGs, you can build a stronger company culture, attract diverse talent, and boost overall success.
What is an Employee Resource Group (ERG)?
Let’s get to grips with the basic anatomy of an ERG: what is it and why should you care about it?
Employee Resource Groups are voluntary, employee-led groups that aim to foster a diverse, inclusive workplace. ERGs bring together employees who share common characteristics or life experiences, like race, gender, sexual orientation, or interests.
But these groups don’t just provide a supportive space for members. They also allow members to give insights and feedback for their organisations, promote professional development, and contribute to overall company culture.
Eager to understand the state of ED&I in 2024? Download OnHand’s Beyond Diversity white paper today to get fresh data and insights from industry experts.
ERGs: Why Do They Matter?
The clue is in the name: these groups are a valuable resource for your organisation.
Speaking at OnHand’s Beyond Diversity webinar, Caroline Rainford, Head of ED&I for Pokerstars & Betfair International, explained just how useful these groups are.
“Utilise the resource groups that you’ve got. If your business does have employee networks, then you utilise their knowledge. They’re a free resource that’s readily available who are comfortable talking about the issues.
”
Watch the webinar for more expert insights.
When you’re seeking to build a culture that nurtures inclusion and diversity, your ERGs are essential. They know what they’re talking about, and for organisations, listening to ERG insights is key to creating a safe and inclusive workplace.
Here are a few key reasons why your company should care about its ERGs:
Fostering Diversity and Inclusion: ERGs help create a sense of belonging among employees, which is essential for an inclusive workplace. By providing a platform for underrepresented groups, ERGs ensure that diverse voices are heard and valued.
Professional Development: ERGs can offer mentorship, networking opportunities, and professional development programs. These initiatives can help members advance their careers and build skills.
Improving Employee Engagement: When employees feel included and valued, they are more likely to be engaged and motivated. ERGs contribute to higher job satisfaction and employee retention. In fact, a sense of belonging is the single greatest driver of engagement at work – 91% of employees who feel they belong also feel engaged in their workplace.
Enhancing Company Culture: ERGs can significantly impact the overall culture of an organisation by nurturing values of respect, understanding, and collaboration.
How ERGs Can Benefit Your Business
Creating authentic inclusion and respect at your company should be the fundamental goal of your ERG program. But, as an added perk, integrating ERGs into your organisation also benefits your business.
Here are the top 5 ways that ERGs can benefit your business:
Attracting Top Talent
Companies with active ERGs are often seen as more attractive to potential hires, especially those from diverse backgrounds. Prospective employees are more likely to choose a company that demonstrates a commitment to diversity and inclusion.
Millennial and Gen Z employees care about their employers’ values: 39% of Gen Z workers and 34% of millennials have turned down employers that do not align with their values.
Plus, a huge 89% of employees believe it’s important to work for a company committed to the values they believe in.
2. Boosting Productivity and Innovation
Diversity breeds creativity, innovation, and better problem-solving. ERGs can facilitate this diversity of thought, leading to increased innovation and better business outcomes.
For instance, racially diverse workplaces show higher revenue growth (11.1%) than their less diverse counterparts (8.6%).
3. Enhancing Employee Wellbeing
ERGs provide support networks that can help employees navigate challenges, both personal and professional. This support can lead to improved mental health and overall wellbeing.
Research shows that employees who feel like they belong at work are far more likely to have a greater sense of wellbeing. 78% of employees who feel like they belong at work rate their wellbeing favourably, this drops to 28% for those who don’t feel a sense of belonging at work.
4. Improving Market Reach
Companies with a diverse workforce are better positioned to understand and serve diverse customer bases. ERGs can provide insights into different market segments, helping businesses tailor their products and services effectively.
Speaking at OnHand’s Beyond Diversity webinar, Michael Barrington-Hibbert, co-founder of 10,000 Black Interns, explained that organisations could miss out on millions of dollars worth of business if they fail to diversify.
“There was a female-led organisation that sold female products and my client turned up to pitch for the work with an all-white male leadership team all over the age of 50. They lost the deal and this company listed for over a billion dollars, multiples of billion dollars, and it really impacted their bottom line.”
Insights from an effective ERG and diverse voices could have directly won billions for this organisation.
5. Strengthening Community Ties
ERGs often engage in community service and outreach activities, enhancing the company’s reputation and strengthening its ties to the community. This aligns with corporate social responsibility (CSR) and environmental, social, and governance (ESG) goals.
Within local communities, ERGs encourage volunteer activities and charitable giving to causes they care about. And they do it well: research from McKinsey found that the most effective aspect of ERGs was their ability to build community.
How OnHand Can Help
OnHand’s on-demand volunteering and impact platform was built with diversity and inclusion in mind. Our platform offers a comprehensive solution to support your company's CSR and ESG initiatives, including the establishment and management of ERGs.
We also offer educational resources. One of our most impactful opportunities is our collection of bitesize talks: 20- to 30-minute interviews recorded by OnHand CEO Sanjay Lobo and a guest speaker on a topic that we’re championing.
Whether it be disability awareness, racial inequality, gender discrimination at work, the climate crisis, homelessness, loneliness, or other social and environmental issues, we’re committed to disseminating information in the most accessible way possible; that is, free and short talks that users can watch from the comfort of their home, whenever suits them.
With key speakers like Michael Barrington-Hibbert (co-founder of 10,000 Black Interns), Celia Chartres-Aris (disabled activist and investor) and Saasha Celestial-One (co-founder of OLIO), we’re dedicated to uplifting the strongest voices in the communities we fight for, and striving towards a more level, equitable approach to learning and volunteering.
We understand that volunteering has to be intersectional to truly make an impact. Without inclusivity, and without accessibility, doing good becomes a tool only for a select group of people. Through OnHand, we have revolutionised the ability to make a difference, regardless of employees’ circumstances.
Likewise, we are ensuring that, through our wide range of opportunities, we are highlighting hundreds of causes that need attention. After all, with our thousands of volunteers eager to get stuck in and enact a change, there’ll be at least one person who can make that difference.
Takeaways
Employee Resource Groups (ERGs) are more than just support networks; they are powerful drivers of diversity, inclusion, and innovation within a company.
By understanding ERGs and how they can benefit your business, you can enhance your company culture, attract talent, and achieve your CSR and ESG goals. At OnHand, we’recommitted to helping you create a thriving, inclusive workplace through building ERGs, and through on-demand community action and education.
Keen to hear more? Book a demo to discover how our platform can support your ERGs and ESG goals.
