The Impact of ERGs and BRGs
Before beginning the tactical exercise of creating ERGs and BRGs, it’s important to understand your WHY for creating ERGs and how your organization will benefit from their creation. The first known ERG was the National Black Employee Caucus (NBEC) founded in 1970 by Xerox CEO Joseph Wilson. The NBEC was created in response to racial tensions in the 1960s to provide a space for Black employees to form social connections, share experiences and work through challenges.
The Strategic Impact of ERGs and BRGs
Fast forward to today. ERGs and BRGs play critical roles in the definition of Diversity Equity and Inclusion (DEI) goals and in the design of programs and products. For employees, ERGs help build a belonging and inclusive community, provides employees a voice and options for involvement, design leadership and professional development support and allows for career connections and mobility.[1] For employers, in today’s business climate, ERGs and BRGs can drive business outcomes. The digital magazine, Human Resource Executive, shares great examples of the benefits of ERGs and BRGs.
Talent acquisition
ERGs and BRGs can serve as a strong source of new talent referrals to help foster a diverse and competitive workforce. A representative workforce helps fuel innovation.
Career Development
Through ERGs and BRGs, employees may organically find mentors or sponsors and learn of other opportunities in the organization in which they have interest and expertise.
Business Growth
BRGs can help reach potential customers and shape the products and services that businesses offer, helping to expand opportunities.
Supplier base
Members of ERGs and BRGs have relationships that can bring new partnership leads to procurement organizations. This builds the diversity of a vendor base and helps create more opportunities within companies’ communities of operation.
The Role of ERGs and BRGs in BLNA Female Retention and Representation in the Workforce
ERGs and BRGs can also play a crucial role in promoting DEI in the workplace, particularly for Black, Latina, and Native American (BLNA) women. For BLNA women, ERGs are valuable platforms for fostering community, connecting with colleagues, providing professional development opportunities, and advocating for inclusion.
In the Reboot Representation report, Systems Upgrade: Rebooting Corporate Policies for Impact, BLNA women can thrive in technology organizations that offer programs that support professional development, which is defined as one of the nine cornerstone policy practices.
For women seeking to grow into leadership roles, participating in or leading an ERG or BRG not only provides opportunities for BLNA women to showcase or gain leadership skills, but also to demonstrate problem-solving and strategy planning expertise. These are essential competencies for leadership positions.
ERGs and BRGs can also contribute to helping BLNA women experience growth through networking opportunities. ERGs and BRGs frequently organize networking events with company leaders, functions and departments, furnishing BLNA women with opportunities to engage with leaders with whom they may not have regular engagement. These events may also expose BLNA women to future career paths as they learn about other businesses with the organization. Finally, some ERGs and BRGs design networking events with customers and external stakeholders, which provides BLNA women with insights into company goals and partnerships.
The Landscape of ERGs/BRGs: Survey Says!
79.4%
of Fortune 500 companies
equating to 397 out of 500, have implemented Employee Resource Group Programs.
26%
of workers
say their workplace has affinity groups or ERGs based on a shared identity, according to a report from the Pew Research Center.
More than
50%
of organizations
have ERGs for Women, LGBTQIA+, African American or Black Employees, Veterans, Latino/Hispanic, Disability, and Asian/Asian-American Experience, according to ERGs at the Crossroads: The State of Employee Resource Groups Report – 2024 by The Strategic ERG Project at the Marshall School of Business, University of Southern California.
66%
of employees
believe that their ERG is effective at fostering a sense of community, according to a McKinsey report.
These groups provide a welcoming space where employees with shared backgrounds or interests can come together, connect, and share their experiences.
100%
of the Fair360, formerly DiversityInc Top 50 companies have ERG programs.