How to Start an Employee Resource Group
Seven top tips for new ERG leaders
Employee Resource Groups (ERGs) are working groups that form to represent the interests of a particular group of people in the workplace who are connected to a specific cause; for example, disability awareness, a certain racial or ethnic group, business ethics, anti-discrimination, giving back to the community, or educational outreach.
ERGs are finding a new and elevated prominence in organizations in recent years, as workplaces become increasingly connected to social movements. More now than ever, with work-from-home at an all-time high, there is a need for organizations to closely link their internal initiatives to support their employees in bringing their whole selves to work and feeling psychologically safe and welcome in their professional environments.
Many organizations will create an ERG (or more than one) as part of their wider Diversity, Equity and Inclusion (DEI) and corporate social responsibility (CSR) programs. The success of these ERGs lies with many different people, but the actual ERG leader has particular agency in ensuring the group does exactly what it needs to in order to make a difference. This article explores the top seven ways an incoming ERG leader can achieve this.
1. Clarify goals and responsibilities
Creating and sustaining an effective ERG starts with setting goals, mapping direction and essentially thinking about what the group will aim to achieve in the long term. This is not a short process, nor should it be taken lightly. A common pitfall of ERGs and sadly, one which is all too common, is that they are cobbled together too fast and given unrealistically swift deadlines to achieve action or results. Leaders must take some time to work with senior leadership and key stakeholders on mapping out a core purpose of the group and its mission. Once this has been considered, the leader should create SMART objectives – ones which are specific, measurable, achievable, relevant, and time-bound – to turn strategy into action. In the case where the leadership team is taking on the process of setting up ERGs, they should clearly define these expectations, as well as budget (more on this in tip #4), before recruiting a leader to run the group.
The final part of this critical ‘planning’ process is to set out what the group members will be doing. Once again, it is all too easy to be vague in assigning duties, or simply not bother altogether. An ERG works best when everyone has an equal part to play and a specific role to fill, for example secretary, treasurer, meetings & events liaison and so on.
Establishing role descriptions will not only clarify such roles but will also make it easier to recruit people for the ERG. When creating them, leaders can clarify professional development and skill building opportunities, demonstrating to candidates that ERGs can positively impact career progression.
2. Values-based recruiting
Role descriptions are not the only way to encourage great people to join an ERG. These groups work best when the people involved and working in them have strong investment in the group’s purpose and goals. Very often, employees are ‘pushed’ into joining an ERG, maybe because nobody else wanted to do it or simply because there was pressure on a manager to provide someone - a classic case of “my boss told me to be here”.
ERG leaders must carefully discover and headhunt people who actively want to be a part of these group. Advertising the ERG’s mission and making it clear that its purpose is to make a real difference will encourage the right people to join; for example, for a mental health advocacy group, someone whose life or loved ones have been impacted by this issue would have a unique insight into what needs to happen to make the workplace more inclusive of people who face challenges with mental health. For ERGs focusing on community outreach, source those with strong local links and connections. It’s critical that the membership of the ERG includes people who are from the group that is being represented, otherwise it will be very difficult to accurately represent the group. We at Crescendo have seen two forms of ERGs:
“For Us, By Us” ERGs - groups where membership is exclusively open to people the group is representing
Ally-Inclusive ERGs - groups that are open to everyone
The type of group you choose should depend on the goals you set - if the primary focus is more about creating a support system and hearing from the represented group, a private “For Us, By Us” group might be best. If, on the other hand, the focus is about involving everyone in advocating for equity for a specific group, an ally-inclusive group might be more appropriate.
3. Attract senior-level buy-in
An ERG will only be truly effective if the organization’s senior leadership are onboard and aligned with its aims and objectives. Unfortunately, this begins outside of the ERG leader’s control, with the recruitment or appointment of senior leaders who understand the importance of ERGs and how they can benefit the organization. This is especially true for ERGs formed from a grassroots effort. One great way to get - and maintain - leadership buy-in is to seek an executive sponsor who can represent your group and advocate for you in senior conversations.
Nevertheless, ERG leaders can add credibility to their initiative by demonstrating its impact. The best way to do this is through data and numbers, which should be broken down to be easily digestible by senior leadership. Increasing the ERG’s visibility through presence at town hall meetings or regular scheduled face-to-face meetings between the ERG leaders and senior leadership will also help. With Crescendo Copilot, ERG leaders regularly pull insights for their ERG members and for the broader organization, and are able to connect the dots between their ERG initiatives and the company’s overall state of inclusion.
Finally, inviting senior leaders to ERG meetings or inviting them to play a part in events or moments of ERG recognition will be a quick and impactful away of keeping them onboard.
4. Understand funding and budget
Even the simplest, smallest-scale ERG will need some form of budget and financial control. In typical corporate settings, ERG activities are rarely seen as contributing to the financial performance of the organization, and the group will likely be seen as a cost-making division.
As part of the goal-setting process, ERG leaders should meet with senior leadership to agree upon a realistic budget which the ERG leader can provide evidence for. It’s important to go into this meeting with a clear plan based on the projected activities, and estimated costs over a timeline. It’s important to be clear, straightforward, and well-thought-out, and to build a business case for the budget you are requesting - demonstrating the projected impact in your proposal is key.
Appointing an ERG member from the organization’s finance team makes this an easier process, as does planning carefully and honing basic knowledge about finance and budgeting.
Note for senior leaders and budget-holders: some organizations pay their ERG leaders a stipend to perform this work - consider doing this to compensate these leaders for their contributions to inclusion in your organization. Recognizing the value of DEI work is part of the larger shift in making DEI an essential part of a company’s success planning.
5. Encourage collaboration between different committees and/or ERGs
Some larger organizations might have different ERGs for different needs, as well as other committees, all of which might vie for the same limited pot of resources or time provided to complete activities. ERG leaders might be very passionate about their own group and cause but do need to be aware that competing programs all will have the same good intentions and high standing in the organization.
A collaborative approach is essential for all ERGs to work together harmoniously. ERGs can work together on cross-cause activities, and can share meeting space, members and even a budget. The success of such collaboration requires all ERG leaders to have a ‘win-win’ mentality, as well as exceptional conflict management skills and a high degree of empathy and emotional intelligence.
If there are many ERGs in your organization, it might be beneficial to set up a meeting for the leaders of each ERG to come together. Some of our partners at Crescendo have seen success with a monthly or quarterly meeting, attended or hosted by a senior leader, to encourage collaboration and also provide an outlet for ERG leaders to raise concerns and share success stories with leadership stakeholders.
6. Recognize and reward
A successful ERG is the product of hard work, and contrary to common belief, being a part of one isn’t a walk in the park. ERG leaders must recognize this, that their team members will have taken valuable time out of their week to contribute to what are hopefully impressive achievements.
In the same way they would do when completing a business goal, ERG leaders must recognize and reward their team in times of accomplishment. Feedback can be anything from a simple “well done” to more tangible rewards such as gifts, vouchers, or a team building activity. If the resources allow for it, some ERG leaders financially incentivize their members.
Where diversity, equity, and inclusion work used to be considered a “side-of-desk” responsibility, recent movements have seen more organizations compensating DEI leaders at all levels of the organization, from Chief Diversity Officers to ERG members. This is an encouraging sign of change, and ERG leaders can be part of driving this shift in their own organizations by demonstrating strong results.
7. Measure success
As a cost centre rather than profit centre, ERGs need to demonstrate to the organization the impact being made in their communities or to their stakeholders. Success can be measured both qualitatively and quantitatively (though often senior leaders look to quantitative data to measure scale of impact).
Qualitative measurement involves the promotion of the group’s activities and achievements through mediums such as social media and meetings. Think about what success looks like for your group, then seek to tell those stories. Did you make an impact to someone? Make it easier for someone to get that promotion? Remove a barrier for an underrepresented employee? All of these are meaningful and contribute to a stakeholder’s understanding of your group’s purpose and impact.
Quantitative measurement concerns the sharing of numbers and statistics, which are very useful for top level analysis and communication to senior leaders. In this case, you’ll want to set up clear objectives ahead of time and measure against those through the performance period.
Both approaches are important for an ERG leader in demonstrating how the ERG is living up to its mission.
. . .
ERGs don’t come together easily. Although their standing in organizations is becoming increasingly prominent, ERG leaders still must communicate the groups’ purpose and how they are contributing – and aligning to – organizational values.
ERG leaders must treat their group like an extension of their day job, which it effectively is. ERGs will come together through ongoing communication and basic, well-executed leadership principles. If these core skills are managed in the right way, the leader’s ERG will become a viable force for good, benefiting both the leader as a credible manager of people and resources, and the organization’s commitment to fostering diversity, inclusion, and community.
