Employee Resource Groups (ERG’s) - Impact on the Bottom Line

Employee Resource Groups save companies money.  The business environment is obviously very competitive.  If your company or organization wants to continue attracting and retaining the most qualified applicants, it needs to take a proactive approach and think outside of the box.  ERG’s should become an integral part of the fabric of your company or organization.  Once the ERG employees recognize that their input is valued, they become part of the growth of the company, which includes increases in sales, reduced costs, short and long range strategic planning, as well as the hiring and retention of the most diverse workforce.  The ERG’s can be the model for all employees to emulate.

ERG's support the increase in sales:

Ø  Company loyalty and pride encourages ERG’s to support sales programs

Ø  Company incentives and rewards convince ERG’s to shop at your company or organization

Ø  Participate in the redesign of store displays to attract those represented in ERG’s

Ø  Encourage your company or organization to include diverse employees in all marketing materials to drive more customers to you

Ø  Promote your company or organization at events, workshops, seminars, and trade shows  

Ø  Provide an awareness of new tactics used by competitors.

ERG's support to reduce costs:

Ø  Involve ERG’s in cost reduction programs

Ø  Create ERG meetings to discuss costs reduction recommendations

Ø  Attract and retain qualified employees, thereby reducing marketing, advertising, recruiting and training expenses.

ERG's support all Human Resources outreach:

Ø  Recruit members of ERG’s to assist on College campuses and at job fairs

Ø  Display ERG information prominently in all recruiting materials

Ø  Provide incentives for new hires referred by ERG members.

ERG's involvement with key management decisions:

Ø  Provide value added advice regarding products, practices and policies

Ø  All external outreach should involve the input of ERG employees to broaden the consumer base

Ø  Each department should have an ERG employee on their strategic planning team

Ø  Increase base of organizational knowledge, strength, creativity, productivity and problem-solving ability, while expanding community commitment

Ø  Ensure work content is explicitly viewed from multiple perspectives and experiences while exploring a variety of teaching and learning methods so that co-workers can respond on both an individual and cultural level.  In an Inclusive Work Environment, everyone feels valued, safe, supported, and encouraged to express his or her views and concerns.

ERG’s minimize threats for litigation:

Ø  Demonstrate that a company has provided an opportunity for support of those involved

Ø  Promote effective cross-communication for executives, managers and employees to address and respond to employee concerns and needs

Ø  Provide opportunities for professional development and advancement opportunities within the company

ERG’s improve customer relations and satisfaction:

Ø  Employees are connected to the community and can identify and communicate with co-workers, customers, and other stakeholders in the various languages and cultures of those they serve

Ø  Many members volunteer to participate on behalf of the company at community events and company events

Ø  Members promote their company by volunteering to serve on boards of community organizations sharing their business expertise and corporate social responsibility.