A Buyer’s Guide to Employee Resource Group (ERG) Software
6 Key Considerations To Help You Build and Scale
Grassroots Communities at Work
The Rise of Employee Action:
Why ERGs Are Vital to Business Success
They say it takes a village and, today, those villages are dynamic, driven communities full of passionate people working toward common goals. They’re our neighborhoods, little league teams, support groups and animal shelters. And as the line between office and home continues to blur, we’re starting to view the workplace as its own community. A place where people come together for more than a paycheck — to live their purpose.
Created in the 1960s in response to racial inequities in the United States, employee resource groups (ERGs) have since risen to become a powerful force for good and a powerful way to help people live their purpose at work. The increasing focus on diversity, equity and inclusion at work has positioned ERGs as vital to business success. In fact, they’re key to building the workplace of the future — a future that will see companies of all sizes evolve from profit-generating vehicles into purpose-driven communities. When done right, ERGs help companies and their people answer the questions, “Who do we want to be?” and “How do we get there?”
“As an employer, if you’re going to be a part of my life, I need you to bring it meaning, I need to feel like I belong and that we’re going to bring out the best in each other.”
Whether you’re just starting to build out an ERG strategy, leading an ERG in your workplace or managing those who do, you need software that’s dedicated to increasing ERG efficiency and, ultimately, impact — for your people, company, stakeholders and society at large.
In this guide, we’ll walk you through the ERG opportunities, challenges and key considerations when evaluating ERG software. We’ll introduce you to Benevity Affinity Groups and show you how it’s purpose built to cocreate better workplaces. You’ll also find the language (and statistics!) to encourage your C-suite to invest in ERGs at your company.
“Employee Resource Groups (ERGs) are voluntary, employee-led groups that foster a diverse, inclusive workplace aligned with organizational mission, values, goals, business practices, and objectives. Other benefits include the development of future leaders, increased employee engagement, and expanded marketplace reach.”
Do ERGs make good business sense?
As someone with boots on the ground, you’ve likely seen firsthand the positive changes brought on by ERGs. From educating on racial equity to creating a sense of belonging for LGBTQ+ individuals to empowering women to advance and excel in leadership positions, ERGs create a better company culture for everyone. And that impact reverberates throughout your organization.
Let’s speak C-suite for a bit and focus on the broader business goals ERGs can help to achieve that have a positive effect on the bottom line.
About
of companies have added or expanded their support for ERGs since the start of 2022.
Create engagement in a disconnected workforce
COVID-19 forced entire companies to disband, removing the connection that came from everyone being together in person. Employees are now feeling less tethered and are looking for more flexible jobs that also provide a greater sense of purpose at work.
The Great Resignation has forced employers to look for new ways to attract and sustain their workforce, and employee engagement is high on the list. According to consulting group Sequoia’s 2021 Employee Experience Benchmarking Report, 40% of companies use ERGs to support recruitment and retention — a 9% increase from the previous year — because they’re proven to bring people together around shared passions, no matter how far apart they are.
ERGs as a recruitment tool:
of U.S. respondents 18 to 24 years old and 52% of respondents 25 to 34 years old reported they would be more likely to apply for a role at a company who had ERGs.
ERGs as a retention tool:
of employees would stay at an organization because it offered ERGs.
Build a more diverse and impactful team
People want to work with companies who have a culture dedicated to diversity, equity, inclusion and belonging (DEIB). Job candidates can see through aspirational but empty mission statements and stock photos depicting diversity — they want concrete examples of DEIB in action. The presence (and support) of ERGs demonstrates an employer’s commitment to creating and sustaining positive change, both inside and outside the company.
Organizations with above-average gender diversity and levels of employee engagement financially outperform companies with below-average diversity and engagement by 46% to 58%.
Shape a culture where people have a voice
The world’s most innovative companies have adopted a collaborative approach to doing business. In a democratized workplace, “ideation” and “cocreation” aren’t just trendy buzzwords but the way forward to increasing productivity and building a healthier culture. At their very essence, ERGs give every participant an equal voice in shaping company culture. And when employers listen and take action, their people feel seen, heard and engaged.
of workers said that they are more likely to stay at a company that takes and acts on feedback.
Lead on environmental and social issues
A company’s ESG (environmental, social, governance) profile is now a key strategic priority, and there’s growing pressure from stakeholders to deliver. Executives are struggling to scale systems to support a growing workforce that’s passionate about, and dedicated to, environmental and social justice issues. ERGs provide a powerful vehicle through which to engage employees on the issues that matter most to them and effect real change, from the inside out.
of consumers will be more loyal to a company who supports social or environmental issues.
Create and measure DEIB programs
Successful DEIB programs aren’t created in a vacuum or based solely on the guidance of external consultants — they’re built on employee feedback. ERGs are a repository of valuable data, from the issues employees are facing and the causes they’re passionate about to the changes they’d like to see in the company. These insights can be leveraged to design, measure and improve DEIB programs that resonate.
Companies with higher-than-average diversity had 19% higher innovation revenues.
Top 10 Challenges for ERG
Leaders and Employees
Over the last decade, ERGs have evolved from a side hustle of passionate volunteers to better organized programs with budgets and incentives for leaders. But they still have a long way to go. Though ERGs have become strategic must-haves for businesses, they’re still mostly run as nice-to-haves. Let’s dig into the challenges that prevent ERGs from reaching their full potential — having massive impact on a company’s DNA.
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Lack of support and resources
Feeling overwhelmed and unsupported at times? You’re not alone. A recent study by Great Place to Work shows that ERG leaders experience far less support for the groups than what company executives believe there to be. Considering ERGs are credited for higher recruitment and retention levels, it’s frustrating when they’re overlooked for support — including budget increases, paid support and additional time.
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2
Lack of dedicated space
Struggling to keep track of everything? It’s hard to mobilize and organize when your groups have no fixed address. When recruitment, discussion and action are spread across productivity tools, intranets and messaging platforms — none of which is designed to support the unique needs of an ERG — it’s easy to lose both purpose and momentum.
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3
Low discovery and recruitment
Do your people know which ERGs exist at your company? It’s challenging for employees to find and explore ERGs when they’re all over the place. Though roughly 90% of Fortune 500 companies have ERG programs, only 8% of their employees participate in them. It’s frustrating knowing you could more easily recruit eager members if only you had the right tools in place.
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4
Low member engagement
Having a tough time keeping ERG members engaged? When you have no gathering place for discussions, feedback and events, you’re stuck directing traffic to messaging apps, survey links and web pages — instead of building member engagement around DEIB work. Keeping members engaged is key to the success and growth of your ERGs. And it’s virtually impossible to scale your ERGs when most of your activity is centered around ensuring they survive.
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5
Little to no reporting on participation, engagement and impact
How easy is it for you to quantify the impact of your ERGs? Having to manually cross-reference a myriad of tools for member numbers, survey results, event attendance and other key metrics is cumbersome and inefficient. Without dedicated tools designed to measure and report on ERGs, you’ll lack the robust intelligence that’s required to inform your ERG program — or to show how it’s contributing to the company’s objectives and bottom line.
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6
Poor access to educational resources
How effectively are you educating your employees? Knowledge is power, especially where social justice issues are concerned. Unfortunately, many ERGs dedicated to DEIB are unable to meet their employee education goals because they lack a central place to distribute, promote and host educational resources.
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7
Poor event management
Regularly smashing your event attendance goals? Likely not if you’re struggling to share events and gather sign-ups. Events, virtual and in person, are critical to ERG success. If your event process is scattered across email invites, group chats and third-party apps, ERG members are missing important context and opportunities for discussion. And ERG leaders are missing an opportunity to generate momentum, maximize attendance, consolidate feedback and gather data.
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8
Lack of admin tools for ERG leaders
Do ERG leaders have access to tools that make it easier to run their groups? If they’re still relying on a patchwork of general productivity tools and people, it’ll be much harder to streamline efforts and focus on impact. Having access to ERG-specific admin tools eliminates inefficiencies associated with adapting a communication tool like SharePoint and/or being reliant on the person responsible for the company calendar.
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9
Lack of privacy
Are your ERGs safe spaces? Do your people believe they are? It’s difficult to engage members if they’re worried about the possibility of repercussions for speaking out or if they want their identities to be private. Unfortunately, whether justified or not, many employees fear their communication channels are being monitored by employers. When privacy is perceived to be jeopardized, important conversations don’t happen and you’re unable to identify the real issues and work to address them.
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10
Weak connection between ERG and CSR
Are your ERG and CSR programs in sync? To fulfill their purpose as agents of change in an organization, ERGs need to move into action. And the best way to do that — and create much higher impact — is to de-silo them from CSR. The ERG, DEIB and CSR teams often collaborate but don’t have unified tools for participation, administration and reporting. The lack of connection results in unidentified issues, unmet needs and unrealized opportunities for change.
Choosing the Right ERG Software: Key Considerations
If you’ve made it this far, you’re likely nodding your head in agreement with the challenges outlined above. Adopting the right software not only alleviates these challenges — it bolsters your company’s commitment to an ERG strategy and, ultimately, maximizes your ERGs’ impact.
When deciding on any new software purchase, budget is probably your first consideration. Here are six others that will help you evaluate your ERG software options and find the right one.
Centralize your ERGs
For ERGs to create lasting cultural change, they need to build communities with strong foundations. Participation and engagement are key indicators of ERG success but these metrics are difficult to nurture, or measure, when ERGs are decentralized across multiple platforms.
Bringing everyone — and everything — together
When ERGs operate from an exclusive (and inclusive!) space, it’s easier for ERG leaders to access membership info, monitor participation, identify trending issues, spark discussion and organize action. When members have a one-stop shop for “everything ERG,” they’re able to better explore groups, contribute to discussions, provide feedback and participate in events.
Growth is where the magic happens — the larger the ERG, the more influence it has on executives and the greater impact it has within its organization. And the right software will give you the ability to scale growth through tools, processes and support.
ERGs with triple-digit memberships are 2x more likely to serve as a strategic resource for their organizations.
Truth Talk
Where do ...
- your people go to discover the ERGs in your company?
- you promote your ERGs?
- you announce upcoming events?
- ERG members communicate?
- you gather feedback?
If your answer isn’t the same for every question, you need a software solution that centralizes everything. For an ERG (and its membership) to grow, it needs a home base from which to communicate its mission, encourage participation and mobilize its membership around core values and key activities. The sense of community that’s built will drive engagement — in the ERG and within the company.
Adopt a purpose-built solution
Your sales team has customer relationship management technology. Your recruitment team has a talent management system. Your accounting team has specialized software. These solutions automate manual tasks, streamline workflows, manage users and provide reporting functionality, to name a few benefits. The one thing they all have in common is they’re built with the needs of a specific business function in mind.
Just as you wouldn’t expect the accounting team to use marketing software and “make it work,” ERGs need software that’s purpose built for the work they do.
Without a dedicated ERG platform, ERG leaders are likely using a smattering of tools to manage their groups, and each is picking and choosing what works best for them or what they’re familiar with. With everything from events to chats to data spread across multiple channels and spaces, they’re spending more time on the “busy work” of managing all these channels instead of the real work — making an impact.
Though 90% of Fortune 500 companies have ERGs, most don’t have dedicated tools to manage them.
Creating a safe space
There’s often a disconnect between what employers say they’re doing about DEIB and how employees feel about the climate at work. Bridging that gap is largely made possible thanks to ERGs. With 78% of employers using monitoring software to track employee performance and/or online activity, it’s critical employees have a safe space to share and learn. A purpose-built ERG platform offers privacy measures that give equity-seeking populations the peace of mind they need to share truthfully and authentically.
Proving your worth
Insights into popular topics, member participation and event attendance help ERGs evaluate their progress against pre-determined goals, and this data can be collected with software that’s built exclusively with ERG key metrics in mind. This way, company leadership can understand the scale of an ERG program’s impact and, in turn, further justify continued support and investment.
Truth Talk
Are you able to ...
- focus the majority of your time on making an impact?
- guarantee members the privacy to share?
- easily provide leadership with data that shows impact?
If you answered no to any of these questions, you need software that’s purpose built for ERGs — software that speaks your language, encourages truth-telling and has the inherent ability to measure key metrics that are specific to the work you do.
Encourage action with powerful tools
DEIB leaders have tough challenges to solve, from establishing effective DEIB programs to creating a more diverse workforce (and leadership). They often rely on ERG leaders and engaged employees to provide fresh ideas and actionable input.
Moving from talk to action
The communication tools you’re using, like dedicated Slack channels, may facilitate discussion but they don’t necessarily facilitate decision-making. For this reason, many ERGs are at risk from “mostly talk, minimal action.” Crossing the bridge from words to employee-led action requires skill on the part of leaders but also tools that enable that all-important transition to happen by making it easy for leaders to spark and manage those critical discussions.
Tools such as quizzes and polls help leaders focus discussions and gather feedback that informs action. For example, an ERG leader for a Black employee ERG could see an uptick in conversation about racism in the workplace, prompting a poll question about racist incidents. Those findings can be used to help inform DEIB strategies and policy changes that can have massive cultural impact within your company. They can also inform CSR strategies to create cultural impact out in the world.
of companies say the DEI work employees do is very or extremely critical, but most don’t give ERGs tools to cocreate impact.
Knowing better is doing better
Education and awareness are critical pieces of any ERG program. To effect true and lasting change within an organization, ERGs must focus on educating their members, coworkers and leadership on the issues impeding the growth of a positive and diverse culture.
Webinars, table talks and leadership training are powerful drivers for change. And resources such as presentations, statistics and courses are important too. The software you choose should include tools that make it easy to locate, organize and promote these valuable assets.
Truth Talk
Does your ERG have access to tools that ...
- prompt, and streamline, discussions?
- gather feedback directly within your
ERG environment? - help you create events more easily?
- provide easy access to all educational resources?
If you answered no to any of these questions, your ability to move from ideas to action is impeded. Software should have the capability to initiate, welcome and focus discussions while integrating tools that collect valuable feedback to inspire action. Crowdsourcing tools are a powerful way for ERG leaders to gather submissions from members and bring them to a company-wide vote. Plus, having a central hub through which to organize events and share resources will help you build the momentum required for your ERG to cocreate impact.
Report on ERG impact
Many ERG programs lack data for even the most basic metrics, like membership numbers — never mind the ROI of their programs. The ability to track ERG membership, participation, engagement and event attendance is critical to understanding the importance and impact of each group and how well they’re meeting their goals.
Driving business forward with data
Having instant access to on-demand data for user behavior empowers ERG and DEIB program leaders to adjust their strategies and be more effective. Correlating this data with CSR program participation could reveal powerful insights into how ERG participation affects giving and volunteering initiatives — informing adjustments to the broader CSR strategy.
Taking it a step further: When reporting is shared with executives, they can quantify the impact of ERGs with tangible business metrics, such as recruitment, retention, promotions and diversity.
Truth Talk
Do your ERG leaders have instant access to data on ...
- membership numbers?
- daily, weekly, monthly participation?
- event attendance?
- the most talked-about topics?
- which ERGs are most active?
If you answered no to any of these questions, you’re missing out on a massive opportunity to join with CSR and DEIB leaders to cocreate a culture that has a positive impact on your people, society and your company’s bottom line. Only ERG-specific software with built-in reporting is designed to deliver these insights.
Integrate with your CSR program
Progressive companies know that ERGs form an integral part of a company’s CSR strategy to increase employee engagement and social impact. And their leadership works to ensure their CSR programs align with their DEIB and ERG goals because they understand the power of that partnership.
Transitioning from afterthought to forethought
Ensuring ERGs have a seat at the table requires going beyond monthly touch-base meetings and collaboration on key awareness dates such as Black History Month and Earth Day. The activity happening in your ERGs can — and should — inform employee engagement programs. This ensures giving and volunteer opportunities resonate with your people, DEIB leadership training is focused on the right issues and your company is able to recruit and retain more diverse talent.
The seamless connection between an ERG and CSR program makes it possible to go beyond discussion into action and rally more people to support issues your employee base cares about. The benefits are reciprocal — with each program inspired and driven by the other.
Companies use Corporate Social Responsibility (CSR) software to manage philanthropic programs and volunteer efforts. CSR software helps users track and measure the impact and influence of their CSR programs, which aim to give back to the community and build a purpose-driven organizational culture. CSR is a comprehensive concept that varies in form depending on the industry and business.
If your CSR team is using software to power their CSR efforts, they’re able to better activate giving, volunteering and granting programs, get support to those in need, and measure the impact of those efforts both within the company and out into the world. ERGs are the “input” to this “output,” and though CSR and ERG teams each require software that’s purpose built to their needs, those software solutions must integrate seamlessly for maximum results.
Truth Talk
Do your ERG and CSR teams ...
- have an easy way to share knowledge?
- work together to achieve DEIB goals?
- leverage ERG data to build CSR programs?
If you answered no to any of these questions, your ability to meet broader CSR goals and, ultimately, effect true and lasting change is minimized. Until there’s true collaboration and transparency between the CSR and ERG teams, they will continue to be siloed and fail to live up to their full potential. Integrating ERG work within a broader CSR program not only maximizes impact but allows for powerful knowledge sharing that leads to a more purpose-driven company.
Leverage client support for success
Introducing new software into your organization comes with a host of challenges, from securing budget to getting IT on board and, finally, training teams. That’s why a focused implementation process is critical for the successful adoption of any software.
Coaching your people through change
“But we’ve always done it this way.” There’ll always be those who resist adopting new ways of doing things because they find it uncomfortable or have had bad experiences. When they’re eventually forced into adopting new software, their reluctance often makes them harder to train. That’s why it’s important the software you select is intuitive, the onboarding process is clearly outlined and ongoing support is offered — ensuring a smooth and painless transition.
“SaaS implementation is the adoption and integration of a software application into an existing business workflow.”
When evaluating an ERG software purchase, ask, “What kind of support will the software provider offer in the first 90 days and beyond?” Onboarding should be hands-on and include role-specific training so all users are set up for success. This can be supplemented with PDF manuals and videos for easy reference and to bring new hires up to speed.
As you consider prospective software providers, look for the following implementation best practices:
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Establish ownership: Who is responsible, from both the client and provider side, for key aspects of the implementation?
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Create an implementation plan: Business goals, timelines and key milestones should be outlined. Any custom implementation requirements should be defined.
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3
Onboard admins and ERG leads: A clearly defined training plan is customized to key roles and offers training, whether in person or virtual. It should include assessments so users and leaders can evaluate progress as well as change management.
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4
Measure implementation success: How will success be measured? Training completion, assessment scores, timelines and key milestones met are key metrics that can indicate a successful implementation.
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5
Measure implementation success: How will success be measured? Training completion, assessment scores, timelines and key milestones met are key metrics that can indicate a successful implementation.
Truth Talk
Does the prospective ERG software provider offer ...
- a well-defined software implementation plan?
- clear implementation goals to measure success?
- ongoing support options that work for your team?
If you answered no to any of these questions, it’s time to move on to the next provider. ERG software that sits on the shelf is a waste of time and resources. You’ll want your team to see the benefits of adopting the software, be excited to use it and have a great onboarding experience. A successful implementation will result in ERG leaders and members happily congregating in their new home.
Introducing Benevity Affinity Groups:
The World’s Most Powerful ERG Community Solution
By now, we hope it’s clear that ERG-specific software will enable your ERGs to grow and scale their efforts and, ultimately, help your company achieve its key strategic goals — from recruitment and retention to building a more diverse culture. Benevity Affinity Groups is designed to support these broader business objectives while helping ERG leaders manage the day-to-day of creating communities of belonging, where employees can come together, learn and take action on the issues that matter to them.
This internal, private-label social network makes it easier for employees to discover, join, create, manage and participate in employee-led groups — all in a safe space that protects their privacy. Give your people an active voice while building a better culture with more peer connections and purpose at work.
Why Benevity Affinity Groups?
It’s purpose built for ERGs
Benevity Affinity Groups helps you create a one-stop community that supports the crucial work ERG leaders and DEIB specialists are doing. Find a beautiful catalog of ERGs, home pages for each, and detailed reports and analytics to measure engagement and impact.
It helps you get (and keep) your people engaged
Create an employee experience where people feel valued, translating into more engaged employees who are proud to work with you. ERG program leaders can also scale their grassroots programs with built-in admin and communications tools.
It brings ERG ideas to life
Benevity Affinity Groups has crowdsourcing tools built in, so you can easily translate your ideas into employee-led action. Host events, share resources, start discussions or poll members, all in an authentic, employee-driven online community.
It reports on impact
Built-in reports provide you with deep insights on which ERGs are most active, who belongs to them, changes in membership, and insights on key issues and topics across your workforce. You’ll be able to correlate ERG engagement with other bottom-line metrics you already track like diversity, productivity, promotions and tenure.
It’s easy to get started
Our world-class community experts will configure Benevity Affinity Groups for you, train you on its tools and show you best practices for success, in both the short and long term. Administration is intuitive and supports various levels of management, from cross-platform permissions to ERG-specific controls.
Leverage the features you want to create the culture you need
- Modern social feed with mobile functionality
- ERG discovery page
- Dedicated ERG home pages
- Rich employee profiles
- Robust reporting
- Integrated event calendars
- Discussion forums
- Gamification with virtual currency and badges
- Surveys, polls and quizzes
- Segmented communication
- Rich media posting with videos, images, documents and GIFs
- SSO and world-class privacy and security
- Integrated with Spark, our industry-leading CSR platform
Spark + Benevity Affinity Groups =
The Perfect Pair
Benevity Affinity Groups integrates with Spark, our industry-leading giving, volunteering and positive action CSR platform. ERGs can highlight the causes that matter to them on their dedicated pages, which can help channel financial support to the right places. They can also link directly to relevant volunteer opportunities and positive actions.
This powerful combination will help your most engaged employees make a difference within (and beyond) company walls. And with all of your company’s ERGs in one space, they can coordinate and team up to create even more impact — together.