Employee Resource Groups, or ERGs—formal workplace communities that foster inclusion and belonging—are at an inflection point.
The mention of the word “ERG” in job postings has increased by 497% from pre-pandemic levels, according to global recruiting site Indeed—an incredible ascendency during the isolating years of Covid, as people sought support and community amid the move to remote and hybrid work, the reckonings following the 2020 murder of George Floyd, and the sudden (and ongoing) disruption of child care.
But, as with most things in life, the initial excitement hasn’t aged well. Over the last couple years, many employers have pulled back their support as the world has started shifting back toward pre-pandemic norms. Only 69% of ERGs had an employer-supplied budget in 2022, compared to 90% in 2020—and those that did have a budget saw an average 5% decrease in funding. ERGs may be more commonplace now than they once were, but compared to their pandemic-era peak, many of them are smaller, less effective versions of themselves.
Another issue in addition to waning institutional support: Many of the people who lead these groups are simply burned out from roles that are typically voluntary and require time investment above and beyond daily job responsibilities. ERG leaders, like the broader membership of the communities they spearhead, tend to be women and employees of color—the same groups of people who are already marginalized in the workplace.
That fatigue is to the detriment of employees and employers alike. Research has shown a strong business case for ERGs: In a 2021 Salesforce survey, some 75% of companies said their ERGs helped with employee retention, and 55% said they are a magnet for top talent. And according to McKinsey research, “when there’s a gap between what ERGs deliver and what employees desire, employees can feel less included at work.” In other words, a poorly supported ERG isn’t just ineffective; it can actively backfire.
At Josie, I’ve noticed a pattern in my work with parent and caregiver ERGs over the past few years: These ERGs were some of the most popular groups to form during the pandemic—with childcare in short supply, virtual learning in full swing, and uncertainty running high, they found the perfect conditions to expand their reach. Now, though, ongoing parental exhaustion has left many in need of a boostin need of a boost. “Our working moms group is fantastic, but we are asking the leaders to do a lot on top of their day jobs. It can easily lead to burnout and a gap in leadership,” says Sara Davies, chief people officer at healthcare research firm The Health Management Academy.
Some parent ERGs I’ve worked with, though, have managed to recharge and come back stronger than ever. I recently asked over a dozen ERG leaders to share how they’ve kept their groups energized and engaged. Here are the main takeaways from those conversations for both ERG leaders and the organizational leaders that support them:
Go slow and steady.
It’s tempting to create a pages-long charter and come up with an elaborate plan for an ERG’s next phase, but starting out small with a few initiatives can lay more sustainable groundwork for bigger goals in the future. “If you’re starting or re-launching an ERG, be targeted and focus on what really matters,” says Steve DiNardo, father of four and co-chair of the Global Families ERG at LinkedIn. “It’s okay to start with a few initiatives and build from there.”
Stephanie Solera, chairperson of the parents and caregivers ERG at consumer insights company Numerator, notes that “people often conflate ERGs with affinity groups,” which are typically less formal and more focused on community, without an ERG’s focus on making the business itself more inclusive. “It may be better to start out by forming an affinity group—it can include a Slack channel, some budget, and serve as a good way to see what people are bringing up,” she says. “This approach comes with less pressure and over time can evolve into a more formal ERG.” Hosting a lunch and learn on a topic of interest or launching an informal book club, for example, can foster connections among employees with similar interests while laying the foundation for an ERG.
Get creative with recognition and resources.
According to HR consultancy The Rise Journey, the share of organizations that pay ERG leaders rose from 6% in 2020 to 46% in 2022. Compensation helps an employer signal that it sees an ERG’s work as vital to the overall health of the business, and that the work of its leaders will be valued and taken seriously. But for many organizations in which this may not be financially feasible, there are several other ways to get the same message across:
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- Recognize their efforts in multiple settings. That means both public and more targeted efforts increasing leaders’ awareness of the work ERG leaders are putting in. For example, Davies recently highlighted the work of the Health Management Academy’s ERG leads at the organization’s quarterly all-hands meeting. In addition, she is working on ways to better educate managers and people leaders about the value ERG leaders are creating for their teams, such as fostering connections across the organization that otherwise may not happen. If your ERG has an executive sponsor, are they sharing with managers the great work that’s being done by their leads? A short email message can go a long way in helping others throughout the company recognize the effort and the value it creates.
- Tap into internal resources and talent. While monetary support is crucial for success, there are other meaningful ways companies can invest in ERGs. Allison Rivera, the Latinx ERG lead at Numerator, shared how her company tapped the graphic design team to create unique logos for each of the company’s six North American ERGs. Katherine Orsund, chair of the company’s LGBTQIA+ ERG, then had those logos printed on merchandise made available in the company store.
- Create networking opportunities. One major draw for many ERG leads is the exposure to senior executives and networking opportunities that the role offers. “You can make great friends along the way and build relationships that continue to grow during your time at the company and beyond,” says Tripp Stevens, a co-chair of RBC Capital Markets’ millennial and Gen-Z focused ERG. Orsund and Rivera also mentioned the direct access they have to the c-level executive sponsors of their ERGs. For those early in their career, that type of exposure can be invaluable.
- Recognize their efforts in multiple settings. That means both public and more targeted efforts increasing leaders’ awareness of the work ERG leaders are putting in. For example, Davies recently highlighted the work of the Health Management Academy’s ERG leads at the organization’s quarterly all-hands meeting. In addition, she is working on ways to better educate managers and people leaders about the value ERG leaders are creating for their teams, such as fostering connections across the organization that otherwise may not happen. If your ERG has an executive sponsor, are they sharing with managers the great work that’s being done by their leads? A short email message can go a long way in helping others throughout the company recognize the effort and the value it creates.
- Tap into internal resources and talent. While monetary support is crucial for success, there are other meaningful ways companies can invest in ERGs. Allison Rivera, the Latinx ERG lead at Numerator, shared how her company tapped the graphic design team to create unique logos for each of the company’s six North American ERGs. Katherine Orsund, chair of the company’s LGBTQIA+ ERG, then had those logos printed on merchandise made available in the company store.
- Create networking opportunities. One major draw for many ERG leads is the exposure to senior executives and networking opportunities that the role offers. “You can make great friends along the way and build relationships that continue to grow during your time at the company and beyond,” says Tripp Stevens, a co-chair of RBC Capital Markets’ millennial and Gen-Z focused ERG. Orsund and Rivera also mentioned the direct access they have to the c-level executive sponsors of their ERGs. For those early in their career, that type of exposure can be invaluable.
- Be proactive in sponsorship. A proactive executive sponsor is paramount to an ERG’s success. As a leader, a slight tweak from “what do you need from me?” to “I understand your goals and here’s what I’m going to do” makes a world of difference.
Link ERGs’ efforts to organizational goals.
Many ERG leaders I spoke with noted that their impact on company objectives is more indirect, such as tracking membership count as an indicator of broader employee engagement. But the need to make a strong business case for ERGs’ existence is more important than ever, especially in light of the slowdown in 2023 and the stubbornly lingering perception in some corners that ERGs are primarily glorified social clubs. The Health Management Academy’s Pride ERG, for example, helped to create more inclusive language in the company’s employee handbook and led a “pronoun session” for the entire company. Through company-wide surveys, Davies hopes to demonstrate the impact of these efforts on the organization’s overall diversity, equity, and inclusion goals for the year.
Create a succession policy.
One of the most revealing findings across my conversations was the lack of a succession plan for ERG leaders (perhaps driven by the more reactive launch during the pandemic, when the strategy for recruiting future leaders was simply not top of mind). Setting term limits with clear next steps for a transfer of responsibility helps mitigate burnout by giving leaders peace of mind that there is an end date, but they can always continue on if desired. Janki Bhoti, co-chair of RBC Capital Markets’ millennial and Gen-Z focused ERG, notes that ERGs and DEI teams can also help ensure continued interest by promoting the skill-building benefits of ERG leadership to employees.
Look for cross-collaboration opportunities.
Finally, there is an increasing recognition that cross-collaboration between ERGs can lead to powerful outcomes—often more so than when these groups act alone.
Krizia Andalajao, who co-chairs the AAPI ERG at Numerator, described how the company’s six ERGs meet together annually to set goals, share ideas, and identify ways to centralize things such as logistics and administrative support. Of course, having a strong foundation in place here is key. “The company invested in a DEI leader [that oversees all ERGs], and she really helped us create the structure we needed to be successful,” Andalajao says.
Another idea: co-hosted events and programming. In line with the fact that people identify in multiple ways, ERGs can team up to develop programming for their members. For example, Orsund’s LGBTQIA+ ERG made plans to co-host events for Black History Month and Women’s History Month with other ERGs at the organization.
As we push forward into 2024, organizations and ERG leaders have a chance to put a bit of energy into, or back into, their ERGs—and create a sustainable path forward to growth and positive impact. The lull we witnessed in 2023 can be reframed as a moment of reset and refueling that needed to happen after the intensity of the previous years. McDaniel Jeantus, co-chair of RBC Capital Markets’ millennial and Gen-Z focused ERG, sums it up nicely: “The return on doing the good work of being an ERG leader is invaluable. You glean the benefits of providing community for others, furthering your own professional development, and the fulfillment of making work feel more meaningful and fun for yourself and coworkers.” Employers: Let’s embrace the opportunity to recharge and reignite our ERGs, fueling a more inclusive and vibrant workplace for all.
Michelle Yu is CEO at Josie, whose mission is to transform the working parent experience. Her work focuses on cultural transformation at the organizational level and personalized support at the individual level to drive retention and engagement among the working parent population.