A healthy, inclusive culture that creates psychological safety, allowing employees to bring their authentic selves to work, is a key to unlocking the potential of a workforce. By forming, supporting, and funding Employee Resource Groups (ERGs), employers send the important message that they value diversity, equity, and inclusion (DEI) and want to leverage DEI to develop an inclusive workplace. An ERG is a voluntary, employee-led group that represents a particular demographic or shared interest within a company. ERGs help employees connect with and support one another, providing organizations with a range of significant short- and long-term benefits. In this blog, we’ll explore the benefits of ERGs for businesses and how they can help companies thrive.
ERGs serve several important purposes for small and large organizations in all sectors. Below are some of the significant ways that ERGs can help drive business success.
Enhanced Sense of Belonging
ERGs help employees from historically marginalized groups build an important sense of community, reducing their feelings of isolation in the workplace. They provide employees with shared backgrounds, interests, and identities a place to come together, share stories, form bonds, and engender support networks. That support allows those employees to feel an enhanced connection and engagement and a stronger sense of belonging within their organization. That enhanced sense of belonging is a form of psychological safety that allows employees to bring their authentic selves and experiences into the workplace.
Improved Innovation, Creativity, and Decision-Making
When employees feel able to bring their authentic selves and experiences into the workplace, they are more likely to work harder, take more risks, identify innovative solutions, and contribute to their company’s success. Decision-making is strengthened when a higher proportion of employees feel empowered to voice their opinions and contribute ideas without the apprehension of facing criticism or reprimand if they fall short. ERGs often serve as petri dishes for creativity since they provide a safe and supportive environment for frank discussion and the sharing of perspectives. Research has proven that inclusive teams make better decisions as much as 87 percent of the time and decisions made and executed by diverse teams delivered 60 percent better results.
Higher Productivity and Employee Engagement
Because ERGs provide a sense of belonging and community for employees, they can contribute to higher levels of engagement and productivity. When employees feel engaged and supported, they are more likely to show up to work with enthusiasm, eager to tackle that day’s challenges. Employees who feel included within their organizations are about three times more likely than their peers to feel excited by and committed to the company mission. By creating a safe and inclusive workplace culture through ERGs, companies foster an environment where all members of the team feel they are equal stakeholders in the company’s success.
Increased Profitability
Companies that embrace diversity and inclusivity tend to be more financially successful. Research by Gartner has shown that companies with diverse workforces perform better financially than those that do not. ERGs are a key part of creating a diverse and inclusive workplace culture that can serve as magnets to attract top talent, including leadership talent, who value DEI and will get the most out of their employees, thereby sparking innovation and productivity and increasing profits.
Positive Brand Reputation
Building a positive brand reputation is extremely important in today’s hyper-competitive economy, and companies that promote diversity and inclusivity through ERGs are viewed more favorably by customers, investors, and potential employees. By supporting their ERGs, companies send a strong message to the marketplace that they value diversity and are committed to creating an inclusive organization that is both commercially successful and furthers the cause of social justice. Those companies that champion DEI and ERGs are respected and burnish their brands even further in the court of public opinion.
Conclusion
In conclusion, Employee Resource Groups are a powerful tool for fostering an inclusive workplace culture that benefits both employees and organizations. When companies actively support their ERGs, they attract and retain talent, experience improved innovation, decision-making, productivity, profitability, and a positive brand reputation. In the 21st century, it is essential for companies to recognize the value of ERGs and support them. By doing so, they will create a stronger, more successful organization that can thrive in today’s challenging business climate.