The value of Employee Resource Groups (ERGs) is no secret – according to the Employer Assistance and Resource Network, 90% of the Fortune 500 companies have them, including Microsoft whose GLEAM group contributed to them being ranked the number one company for diversity and inclusion for 2020.

It is critical, then, that in order to remain competitive employers have an understanding of how ERGs are set up, the role they play within a business and what best practice is for managing them once they are in operation.

Creating an Employee Resource Group
ERGs are voluntary, employee-led networks that consist of individuals from different communities who share a common goal to promote diversity and inclusion at work. Before anything else, it is necessary for employers to gauge interest and identify which employees would benefit from an ERG. Demand can be assessed through employee feedback surveys, which give staff the chance to anonymously share their perspective on particular issues, for instance representation of certain communities in the workplace. If from the survey results it is clear action is required, the next step is to appoint a network lead.

Network leads bridge the gap between the ERG and senior management, and are ultimately responsible for the overall running of the group. It’s important they are representative of the community they are supporting and are armed with all the necessary skills and knowledge needed to manage the ERG. Employers should consider providing training sessions and development programmes to facilitate this.

 An Employee Resource Group’s role
The fundamental purpose of an ERG is to boost the representation and awareness of certain groups, and to ensure the workplace is an inclusive environment for them to work. Showcasing role models for others to look up to, hosting events and fronting campaigns, as well as informative seminars all go a long way to achieving this.

It is crucial ERGs are visible, particularly during the onboarding process of new recruits. They can play a huge role in the retention of staff, as if new starters can easily identify a community they can be a part of it ensures they feel welcome in the organisation from day one.

As well as playing a part in improving employee retention, ERGs can also be extremely influential on company procedure, particularly in terms of policy creation and correction. Employers should consult the network lead on any new policies to ensure they are inclusive, and seek feedback on existing policies.

Managing an Employee Resource Group
Once the ERG is up and running, it’s important senior management take a step back and allow the network lead to take the reins and run things. While it is good practice to assist in objective setting and arranging time for progress reports and updates, ultimately the ERG should be left to it – it is an employee run initiative after all. It is management’s role, however, to facilitate operations, whether that be through providing funding or venues, or allocating time for group activity.

To help raise the ERGs’ profile, senior team members may want to put themselves forward as an executive sponsor. This involvement would go a long way to promoting and publicising the existence of such networks, advertising to people within the company and elsewhere that the business is serious about diversity and inclusion.

It comes as no surprise that most of the world’s top performing businesses have ERGs in their ranks. Their influence is clear, and multifaceted in a way that makes them truly beneficial for all involved. Their impact is felt from a personal level, making individual employees feel welcome and valued within an organisation, all the way to organisation-wide advantages such as improved recruitment and retention, and are a must-have feature for any business that is serious about diversity and inclusion.