Employee Resource Groups: What are ERGs and why do they matter?

Employee Resource Groups (ERGs) are crucial for creating an inclusive and supportive workplace. This guide delves into what ERGs are, why they matter, and how they can benefit your business. By embracing ERGs, you can foster a stronger company culture, attract diverse talent, and boost overall success.

If you’re 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.

What Are Employee Resource Groups (ERGs)?

ERGs are voluntary groups that unite employees who share common characteristics or life experiences, like race, gender, sexual orientation, or disability.

ERGs don’t just provide support for their members – they also offer valuable insights and feedback for organisations, promote professional development, and enhance company culture.

Why Do ERGs Matter?

As the name suggests, Employee Resource Groups are an invaluable resource for your organisation.

Speaking at OnHand’s Beyond Diversity webinar, Caroline Rainford, Head of ED&I for Pokerstars & Betfair International, highlighted just how useful these groups can be:

“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.”

ERGs are essential for building a culture of inclusion and diversity – and listening to ERG insights is key to creating a safe and inclusive workplace.

Here are a few key reasons why your company should prioritise ERGs:

• Fostering Diversity and Inclusion: ERGs create a sense of belonging, essential for an inclusive workplace, ultimately ensuring that diverse voices are heard and valued.
• Professional Development: ERGs offer mentorship, networking, and professional development programs, helping members advance their careers and build skills.
• Improving Employee Engagement: Employees who feel included and valued are more likely to be engaged at work. 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 significantly impact organisational culture by nurturing values of respect, understanding, and collaboration.

How ERGs Benefit Your Business

ERGs are all about promoting inclusion, but the benefits of these groups don’t stop there. They can also reap business rewards.

Here are the top 5 ways ERGs can positively impact your business:

1. Attracting Top Talent: Companies with active ERGs are more attractive to potential hires, especially those from diverse backgrounds. Millennials and Gen Z employees care about their employers’ values, with 39% of Gen Z and 34% of millennials turning down employers that do not align with their values. Plus, 89% of employees believe it’s important to work for a company committed to their values.

2. Boosting Productivity and Innovation: Diversity fosters creativity and better problem-solving. ERGs facilitate diverse thinking, leading to increased innovation and better business outcomes. For example, racially diverse workplaces show higher revenue growth (11.1%) compared to their less diverse counterparts (8.6%).

3. Enhancing Employee Wellbeing: ERGs provide support networks that improve mental health and overall wellbeing. Employees who feel they belong at work are significantly more likely to rate their wellbeing favourably (78% versus 28% for those who don’t feel a sense of belonging).

4. Improving Market Reach: A diverse workforce is better positioned to understand and serve diverse customer bases. ERGs 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 companies could miss out on millions of dollars worth of business if they fail to embrace diversity:

“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.”

5. Strengthening Community Ties: ERGs engage in community service and outreach activities, enhancing the company’s reputation and aligning with CSR and ESG goals. McKinsey research shows that the most effective aspect of ERGs is 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.

Our educational resources, like our 20- to 30-minute interviews with expert speakers, offer accessible learning opportunities on topics like disability awareness, racial inequality, and gender discrimination.

We make sure that volunteering is intersectional, inclusive, and accessible, allowing all employees to participate. With thousands of volunteers and diverse opportunities, we highlight causes that need attention and empower employees to make a difference.

Takeaways

ERGs can be seriously powerful drivers of diversity, inclusion, and innovation. By using ERGs, you can enhance your company culture, attract talent, and achieve your CSR and ESG goals.

OnHand is dedicated to helping you create a thriving, inclusive workplace through building ERGs and community action. Interested in learning more? Book a demo to discover how our platform can support your ERGs and ESG goals.