76% of job seekers consider workplace diversity an important factor when evaluating companies and job offers. As small businesses seek to attract top talent and retain valued employees, fostering an inclusive workplace culture has become a priority. Employees who feel a sense of belonging and community at work are more engaged, productive, and loyal to their employers. With so many different strategies available to foster this sense of belonging, what can small businesses do to tailor their approach to fit the unique needs of their workforce?
One strategy many businesses have used to promote the type of inclusion job seekers look for is establishing employee resource groups (ERGs). 90% of Fortune 500 companies now offer ERGs to their employees. While setting them up in small businesses can present challenges, especially with fewer employees and more limited budgets, implementing them with the right strategies can place small businesses in a better position to launch impactful ERGs to drive belonging.
What are Employee Resource Groups and Why are They Important?
Employee Resource Groups (ERGs) are employee-led groups that provide support, professional development, networking, and community engagement opportunities for their members. What’s so unique about ERGs is that they are entirely voluntary, driven by the passion and initiative of their members. Some of the main reasons employees create and join ERGs are to connect with coworkers with similar experiences, participate in leadership and development opportunities, and contribute to diversity, equity, and inclusion efforts.
Some common examples include groups focused on:
- Gender (Women’s ERG)
- Race/Ethnicity (Black or Hispanic/Latinx ERGs)
- Sexual orientation (LGBTQ+ Pride ERG)
- Cultural background (Pan-Asian ERG)
- Abilities (Neurodiversity/disability advocacy ERG)
Some other common ERG focus areas include faith-based groups, environmental advocacy, working parents, military/veterans, young professionals, recreation/hobby groups, volunteering, and health/wellness advocacy. Some companies even have ERGs focused on specific business divisions to foster connections among departments. The options are endless.
With so many possible areas of focus, the benefits provided by ERGs are also endless. Here are more benefits that demonstrate the power of an ERG:
- Fostering belonging and community: Gives members a sense of connection and support through shared experiences and backgrounds. This leads to greater satisfaction and retention.
- Advancing Diversity and Inclusion efforts: Provides feedback to inform D&I programs and contribute to diversity-focused outreach and partnerships.
- Promoting inclusion and cross-cultural understanding: Allows employees from different groups to come together, share stories/perspectives, and gain a greater understanding of one another.
- Professional development and leadership opportunities: Can provide training, mentoring, skill building, and leadership roles that support members’ career growth.
- Supporting recruitment and retention: A strong ERG program signals a commitment to diversity and inclusion to potential hires. It also improves loyalty and retention by providing groups and support systems.
Challenges of Launching ERGs at Small Businesses
With fewer employees overall, it can be difficult initially for smaller businesses to support distinct ERG groups dedicated to different demographics. Competing day-to-day operational priorities also make it challenging for small business leaders to devote time and budgets to ERG programs. So, while important for inclusion efforts, implementing ERGs in small businesses does present some unique obstacles:
- With fewer revenue streams, small businesses have less money to fund ERG activities and less staff to manage the ins and outs.
- A smaller employee population makes it tricky to determine which groups have enough members to be sustainable.
- The limited number of potential members limits the types of ERGs that can form around specific interests.
- Smaller HR teams may not have the capacity for full program management, especially as group numbers increase.
- Fewer ERG options may cause some employees to feel excluded.
Despite these challenges, small businesses should not avoid ERGs. By starting small and utilizing available resources, impactful ERGs can still take form.
Strategies for Small Businesses to Successfully Launch ERGs
By embracing the following approaches, small businesses can launch ERGs tailored to their unique needs and resources.
Assess Employee Interest
Surveying employees is important to identify the 1-2 most feasible initial ERGs based on high-engagement topics and backgrounds. Short online polls through email or collaboration tools allow for direct input on interests. Analyze results to determine where interest is strongest for minimal groups.
Prioritize Foundational Focus
Instead of launching 5-6 ERGs at the same time, start with just 1 chapter focused on an essential or underrepresented area like women, LGBTQ+, racial/ethnic minorities, or disability inclusion. This makes coordination achievable with limited resources. Go deep on fostering belonging for one group before expanding.
Leverage Available Tools
Digital collaboration platforms like Microsoft Teams, Slack, Zoom, and Google Drive provide low-cost ways to organize ERGs. Built-in messaging and video chat allow members to meet up virtually at any time. Shared documents and databases consolidate resources. Technology unlocks ERG potential on small budgets.
Establish an Accessible Foundation
In the early stages, focus on small, meaningful meetups or speakers instead of expensive large conferences. Low-cost virtual discussions, community service projects, guest talks, and social events help members connect and can be just as effective, if not more.
Remember The End Goal
An ERG’s purpose is to foster inclusion, belonging, and community. With creativity, this is achievable even with limited resources. Don’t lose sight of the end goal by putting all of your attention on the “big budget” of large businesses. Remember: Focus on the human element.
Best Practices and Considerations
When launching ERGs, it’s important to keep in mind some best practices and considerations that can improve their success:
- Establish clear processes for launching new groups, selecting leadership, and setting budgets. Document procedures in a handbook.
- Formally integrate ERG goals with a broader DEI strategy. Make sure there is alignment with top-level diversity objectives.
- Train ERG leaders on roles, responsibilities, and best practices. Set clear expectations for success.
- Encourage coordination and sharing of ideas across ERG leadership. Have regular cross-ERG check-ins.
- Consider creative techniques like shared budgets or joint events if some groups start to overlap.
- Continuously evaluate existing ERGs to be sure they are still active and valued. Phase out inactive groups if needed.
Tracking ERG Success Over Time In Your Small Business
To be sure ERGs continue succeeding and evolving, small businesses should implement ongoing tracking and evaluation. Key actions include:
- Benchmark metrics such as retention and turnover rates before launch, and track regularly after launch. Surveys can also gauge if ERG members feel more included.
- Closely monitor participation rates and engagement. Growing membership represents value.
- Continuously pursue input from ERG members on desired programming, activities, and areas for improvement.
- Slowly add additional ERG chapters over time as interest grows to extend reach.
- Adjust budgets and staffing support as membership expands and evolves.
Unleash the Power of Inclusion With Platinum Group
Fostering true diversity, equity and inclusion has become a moral and business imperative for the well-known businesses we are familiar with. The small businesses that stand a chance for growth are those that attract, retain, and empower great talent across all spectrums of race, gender, background, and experience.
By embracing the strategies we’ve shared with you, your small business can overcome resource limitations and activate the power of employee resource groups. Personalized ERGs will unlock greater belonging and community within your workplace. When people feel seen, heard, and supported at work, they will return that energy tenfold.
ABOUT PLATINUM GROUP
Platinum Group is a human capital management enterprise providing cloud-based solutions to innovate and streamline your workforce. We’re here to help you focus on what matters most while simplifying the strategies you need to get there. If you are interested in learning more about us and our isolved platform, we invite you to visit our website or schedule a demo. We are eager to understand your unique business needs and provide you with our human capital management solutions to help you streamline your operations and achieve success.