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How ERGs Can Help Companies Attract and Retain Employees


How ERGs can help attract and retain employees

In today's talent market, attracting and retaining top performers is a constant battle. Companies are pulling out all the stops, from competitive salaries and benefits to fancy perks and remote work options. But there's one often-overlooked secret weapon that can give companies a significant edge: Employee Resource Groups (ERGs).


ERGs are employee-led groups that bring together individuals with shared identities or experiences, such as gender, ethnicity, sexual orientation, or veteran status. They provide a safe space for members to connect, share experiences, and support each other. But their impact goes far beyond social gatherings. they're powerful magnets for diverse talent and catalysts for employee engagement, retention, and, ultimately, business success.


How ERGs help attract and retain employees


  • Employers of choice: Studies show a 20% boost in attracting diverse talent when companies have ERGs that flourish. But the perks go deeper. Diverse teams bring innovation, reflect your customer base, and create a more equitable space for everyone to thrive. It's a win-win for both your company's success and your employees' well-being. When you invest in strong ERGs, you invest in both your talent pipeline and your overall culture.


  • Nurturing Diversity: More than 3 in 4 employees and job seekers (76%) report a diverse workforce is an important factor when evaluating companies and job offers. When employees feel seen, valued, and supported by their colleagues and company, they're more likely to stay engaged and productive.


  • Boosting Employee Engagement: ERGs provide opportunities for professional development, mentorship, and networking, all of which contribute to higher employee engagement. Engaged employees are 59% more likely to stay with their employer, making ERGs a valuable tool for retention.


  • Attracting Top Talent from Underrepresented Groups: ERGs can serve as powerful magnets for top talent from underrepresented groups, who often face challenges in finding workplaces where they feel welcome and supported. A 2018 study by McKinsey & Company found that companies with strong diversity initiatives are 35% more likely to attract top talent.


The positive impact of ERGs is not just theoretical. Here are some real-world examples:


  • Intel: Their PRIDE ERG helped increase employee engagement among LGBTQ+ employees by 15% and reduce turnover by 12%.

  • Salesforce: Their Black Employee Network (BEN) played a key role in attracting and retaining top Black talent, contributing to a 50% increase in Black representation in leadership roles.

  • Accenture: Their Women's Network helped increase the percentage of women in senior leadership roles from 15% to 25% in just five years.


How to elevate ERGs to impact talent acquisition and retention


  • Invest in your ERGs: Provide ERGs with adequate funding by having dedicated ERG budgets in place. Provide them with resources and technology support such as ERG management software. ERG platforms not only reduce the administrative burden for ERG leaders and managers, they also provide an elevated user experience to employees.

  • Empower ERG leaders: Give them the autonomy to set their own goals and priorities, and make sure their voices are heard at the leadership level. Support them with free resources such as the Ultimate Guide for ERG Leads and the Annual Guide and Planner for ERG management. Recognize and reward their work and provide them mentoring opportunities and dedicated time with senior leaders. High potential employees would be encouraged to contribute as ERG leads and thus, impact their engagement at the workplace.

  • Promote ERG activities: Make sure everyone in the company is aware of the work of your ERGs and encourage participation in their events and initiatives. When the leadership team supports ERGs, employees are encouraged to participate without the fear of being judged. By conducting ERG events and activities, a sense of community is created at the workplace. A sense of belonging can add to employee satisfaction and can lead to employee loyalty.

  • Align ERGs with Business Goals: Encourage ERGs to evolve into Business Resource Groups (BRGs). Employees will gravitate towards opportunities to create business value.

  • ERG Mentoring: Introduce ERG Mentoring to provide mentorship opportunities to high-potential employees. Mentorship programs add value to the personal and professional development of employees and can influence workplace loyalty. 


Investing in ERGs is not just about doing the right thing; it's about making a smart business decision. By creating a diverse and inclusive workplace where top talent from all backgrounds feel welcome and supported, you'll be well-positioned to attract, retain, and unleash the full potential of your workforce. Remember, ERGs are not simply social clubs; they are powerful tools for attracting and retaining top talent. So, embrace the potential of ERGs to watch your company become a talent magnet in a competitive market.


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