Understanding and Starting an Employee Resource Group (ERG)

Employee resource groups (ERGs) are employee-led, voluntary groups organized around shared interests, identities, or experiences. ERGs foster belonging, offer peer support, raise awareness, and serve as a channel for employees to support diversity, equity, and inclusion (DEI) initiatives across the organization. Employees may form ERGs based on gender, ethnicity, religion, sexual orientation, age, disability, military status, lifestyles, causes, or other shared interests, such as parenting, caregiving, mental health, or hobbies.

Human resources (HR) departments and leadership teams formally support employee resource groups. With effective policies, guidelines, and support in place, employees have the framework to create and join thriving groups that benefit both employees and employers. Regardless of the current state of DEI, experts believe that ERGs are here to stay. ERGs were first established in 1970 when the CEO of Xerox created The Black Caucus, and since then, they have evolved into a vital tool for workplaces. 

Are ERGs Legal?

ERGs were developed to meet the needs of groups that have a history of being marginalized. Today, “ERGs may be unlawful if they are not open to everyone,” explains Ogletree Deakins.  Groups should not exclude employees or segregate members by protected characteristics. What matters most is how you structure the groups. 

“You can center Black, Latinx, AAPI, LGBTQ+, and Women’s experiences. You cannot bar others from joining based on race, gender, religion, or any other protected trait. Focus is legal. Exclusion is not.” – Shari Dunn on LinkedIn.

Types of ERGs 

Employee resource groups are employee-driven initiatives that have executive sponsorship and HR support. Regardless of the specific focus of the group, each group must permit open participation and allyship by allowing any employee to join. The many types of ERGs fall into five categories.

• Identity-based groups: This category is for groups that are formed based on shared demographic characteristics such as gender identity or racial identity. They may be established for underrepresented groups or for a specific demographic, but membership must remain open to anyone and be willing to include other employees as allies. This identity-based category also includes groups for parents, young professionals, and multi-generational groups. 
• Professional development groups: The focus of professional development groups is on developing leadership skills and expanding career knowledge. They focus on networking, mentoring, workshops, and continuing education. 
• Community service groups: Employees who are interested in volunteering, charitable donations, and community service join these groups. The focus is on causes, community action, giving back, and assisting local organizations. 
• Health and wellness groups: Supporting employee well-being is the focus of health and wellness groups. Groups could include healthy eating, stress management, or mental health. 
• Interest-based groups: Employees who have shared interests, passions, or hobbies can come together in interest-based groups. The possibilities are vast, ranging from fitness to book clubs. 

Benefits of ERGs

Social connections are essential for employee wellness. In addition to fostering relationships, belonging, and a more inclusive workplace, ERGs have many beneficial impacts for both employers and employees. As a result, they are an effective way to decrease employee turnover. 

• DEIB: Diversity, equity, inclusion, and belonging initiatives are strengthened by ERGs. Employers can assist in meeting the needs of a diverse workforce and foster inclusion and belonging through ERGs. The groups help employees to feel heard and accepted.
• Community building: According to McKinsey, “ERGs are more likely to be effective in community building than any other dimension.”
• Peer support: When employees feel psychologically safe, they can build trust, peer support, and allyship, thus increasing feelings of belonging. 
• Connection: They build meaningful relationships by bringing employees together to bond, share experiences, and strengthen connections across teams.
• Employee wellness: When employees have peer support and a safe place to discuss shared issues, employee wellness is boosted.
• Psychological safety: ERGs help to cultivate psychological safety by providing a safe space where employees can be themselves and speak up. 
• Personal growth and professional development: Networking, mentoring, and workshops help employees to experience personal growth and develop the professional skills they need for career advancement and performance management. 
• Improved physical environment: Another benefit is ensuring that the physical environment is accessible and comfortable for all employees. This could include ergonomic office equipment, gender-neutral restrooms, and accessibility improvements for people with disabilities.  
• Leadership development: As leadership skills are supported, practiced, and refined, ERG leaders become better equipped for career promotions and to lead diverse teams. When managers receive support, both employees and employers will experience the benefits.
• Risk management: When employees have a place to freely express concerns instead of suppressing them, it prevents emotions from escalating into larger conflicts and risky situations.
• Identify issues: The groups bring awareness to workplace issues that affect specific groups. Together, ERG members work to advocate for meaningful change and help shape organizational priorities. 
• Innovation: When employees feel safe being themselves at work and feel connected with their peers, innovation flourishes, which benefits the entire company.
• Employee retention: ERGs help employees feel more connected and satisfied at work. As a result, morale, engagement, and company culture are strengthened. All of these areas contribute to increased employee retention. “AT&T, at one point, reported that retention among participants in its 11,000+ member Black ERG was over 85%,” stated MentorcliQ. 
• Recruiting and onboarding: Employers can attract top talent by highlighting their ERGs. During onboarding, ERGs help new hires form social connections.

Examples of ERGs

While large companies likely have many ERGs, small companies may only have one group. Some small businesses are adding employee resource groups to foster a sense of belonging. Great Place to Work describes how Once Upon a Farm, a small business with only 87 employees, is successfully running one employee resource group focused on engagement and empowerment. In addition to functioning as a crucial listening channel, the group plans events for awareness months and holidays. 

At Georgetown University, employees who would like to start an ERG need to submit a proposal by completing an application and reviewing a sample charter template. They must have a designated senior leader who will sponsor the group, five employee members, a mission consistent with the university’s mission and values, and submit annual reports. There is currently a list of six approved ERGs: AAAPI, disability, LGBTQ+, Black Diaspora, bicycle commuting, and Latin employees.

“Today, 90 percent of Fortune 500 companies have ERGs,” reports McKinsey. There are nine ERGs at Microsoft: BAM (Black and African American), GLEAM (Global LGBTQIA+ Employees and Allies at Microsoft), disability, military, Asians, families, HOLA (Hispanic and Latinx Organization of Leaders in Action), women, and Indigenous. 

According to the Together Platform, the Teachers Insurance and Annuity Association of America (TIAA) has 12 ERGs, which include these notable groups: YoPro (young professionals), Empowered for African American voices, and SoPro (seasoned and experienced professionals).

Employer Steps To Support Employee Resource Groups

In order for ERGs to become a thriving part of your company culture, the process begins with employers and requires ongoing organizational support. Before employees can start an employee resource group, employers need to create a framework. When human resources and executives create a pathway for ERGs, employees will have the tools they need to create and run them. 

Step 1: HR Creates a Pathway for ERGs 

The human resources department needs to lay out a formal process for ERGs to be created and to receive ongoing support. When employees want to create an ERG, they need a process to follow that includes templates, approval, funding, recruitment, and sponsors. It is up to HR to identify the need for ERGs and to provide the tools and encouragement for employees to start them. 

Step 2: Create a Structure and Guidelines

Start by creating bylaws and a charter for ERGs to share with employees. A charter explains the why and what, while bylaws explain the how and the rules. Provide employees with a checklist, application form, and template for creating ERGs. 

Step 3: Establish Metrics

It is up to HR to determine the metrics that will be used to measure the success of ERGs. MentorcliQ provides an actionable guide for 10 ERG metrics to consider tracking and how to measure them. Metrics may include membership numbers, participation rates, satisfaction rates, retention rates, and ROI. 

Employee Steps To Start an Employee Resource Group 

Employees who want to start an ERG should follow specific steps created by the organization. ERG founders will need to do multiple tasks, including creating a mission statement, getting an executive sponsor, and recruiting members. 

Step 1: Determine the Level of Interest

The first step is to determine how many employees would be interested in the group. The minimum number of members that you need depends on the size of your company. For small businesses, aim for 10 members to start. 

For groups targeting specific demographics, inquire with HR about the company demographics. Running an employee survey can also help gauge the level of interest and the types of ERGs that employees want. Even without a survey, you can use your own observations to determine the potential audience. For example, if you notice many recent college grads at your company, then there could be a demand for a group for young professionals. This group could include seasoned professionals to serve as mentors. 

Step 2: Create a Mission Statement

Create a mission statement that is one or two sentences. Refer to examples of mission statements from other ERGs to guide your efforts. This is where you really want to focus on the group’s purpose and the best way to state it. Identifying your audience and goals will aid in creating your mission statement. 

Step 3: Get Executive Buy-In

Be prepared to make your case to the leadership team to show the need for the new ERG. Each ERG also requires an executive sponsor. From explaining the group’s purpose to presenting proposed activities, a budget, and completed forms, gather everything you need to make your case. Be sure to align your proposed group with core values and organizational goals. Your executive sponsor will be instrumental in reaching your goals. 

Step 4: Promote the Group

Now that your group has been approved, it is time to advertise the group and recruit members. HR can advise you on the best ways to promote your group. Remember to include allies in the group and ensure that the group is open to any employee who wants to join. From talking with your co-workers to posts on internal communication channels, you have many ways to promote your group.

Step 5: Hold Your First Meeting

The first meeting will set the tone for your future meetings. Ask each member to share what they are looking to gain from the group and who is interested in holding a leadership position. As a group, create goals, brainstorm activities, and identify causes to support. 

There are many leadership roles available in an ERG. Depending on the size of the employee resource group, the number of positions will vary. A small group may only have a few leadership roles initially, and then add more as it grows. A large group could have as many as eight to 10 members on the leadership team. In addition to the president and vice president, positions could include secretary, treasurer, membership lead, communications lead, event coordinator, and mentorship lead. 

Step 6: Obtain Ongoing Support

For long-term success, your ERG will need organizational support. Set your budget and find out how to request organizational funds. Hold regular check-ins with your executive sponsor, who can guide you on the best ways to secure organizational support.

ERG Best Practices to Avoid Pitfalls

Many companies experience pitfalls that can make ERGs ineffective. McKinsey’s research identified these four best practices for an effective employee resource group:

• Use a clear purpose: Focus on a clear purpose and goals that align with your organizational goals. It is essential to avoid the pitfall of strategic misalignment.

• Provide deliberate communication: You can eliminate the disconnect between expectations and reality by ensuring that the organizational communication about a specific ERG is detailed, deliberate, and accurate. ERG leaders and DEI teams need to align to prevent additional pitfalls.

• Ensure ample leadership support and funding: Each ERG at your company should include a similar level of leadership support and access to ample funding. A centrally aligned approach and tracking metrics will increase effectiveness.

• Provide support to ERG leaders: Being an ERG leader requires time, resources, collaboration, and support. Some companies provide additional compensation to ERG leaders, while others are uncompensated for the extra responsibilities of running an ERG. Companies that value, support, recognize, and reward ERG leaders will increase the likelihood of ERGs becoming change engines.