Employee resource groups (ERGs), also known as inclusion resource groups (IRGs) or affinity groups (AGs), are volunteer-led organizations within a company. Their purpose is to enhance workplace diversity, equity, and inclusion (DEI), and mitigate bias.
ERGs are increasingly popular workplace programs today. However, a McKinsey & Company report surveying 25,000 organizations found that many organizations lack transformative infrastructure to support DEI, including those with ERGs (Source).
In this article, we’ll review the benefits of ERGs, their shortcomings, and how organizational mentorship programs are essential to overcome those shortcomings to create lasting, transformative change within organizations.
What are ERGs and why do we need them?
Employee resource groups promote organizational diversity, equity, and inclusion, as stated above. What is considered the very first ERG developed in the 1960s during the Civil Rights movement in the United States. Black employees at Xerox formed a volunteer organization to help overcome racial tensions in the workplace (Source). Hewlett Packard created the first LGBTQ+ ERG in 1978 (Source).
Like the first ERGs, many of ERGs now support affinity groups, especially groups that have been historically marginalized due to race, gender expression, or sexual orientation.
Today, 93% of organizations that offer ERGs do so to support women in the workplace, while 90% offer ERGs based upon race/ethnicity, and 84% support LGBTQ+ communities. (Source)
Other kinds of affinity groups that organizations support through ERGs include those with disabilities, generation-based groups, multicultural communities, working parents, military service workers and military families, adoptive parents, those responsibility for elder-care, and faith-based groups (Source). Many organizations also offer ERGs based upon volunteerism and community service, professional development, and health and wellness.
In short, ERGs are any kind of volunteer-led organization designed to provide a culture add and to improve organizational operations. Today, 90% of Fortune 500 companies offer ERGs (Source).
Benefits of ERGs and mentorship programs
The range of ERGs employers offer is as wide ranging as their benefits, and their effectiveness or lack thereof. Many of the intended benefits of ERGs overlap with organizational mentorship programs. Let’s review the benefits of both before we understand why mentorship programs are essential to ensure ERGs are effective.
Advocacy and DEI Historically marginalized groups, as well as groups underrepresented in certain organizations or industries, need additional advocacy in order to thrive in the workplace. ERGs and mentorship programs provide opportunity for groups to advocate for themselves and for organizations to achieve DEI goals. Workplaces that improve intercultural awareness can also improve their people culture and productivity overall.
Increase Retention When employees feel supported, they are more likely to feel fulfilled in their jobs. Employees that feel more connected to their colleagues through ERGs and mentorship programs are more likely to stay with the organization longer.
77% of companies report that mentoring programs increase retention. Retention rates for mentees (72%) and mentors (69%) in one study was higher than for employees who did not participate in mentoring programs (49%) (Source). Increase Engagement and Satisfaction
Employees that feel supported and connected to their teams are more engaged and satisfied. ERGs and mentorship programs can increase engagement and satisfaction. In fact, 91% of people who have a mentor are satisfied with their jobs, with 57% saying they are “very satisfied” (Source). Drive Innovation/ CreativityERGs and mentorship programs are incubators for innovation because they are safe spaces to discuss big ideas. Many times, organizations are unaware of important ideas that can transform company infrastructure, opportunities to develop new products, or ways to reach untapped markets. ERGs and mentorship programs provide forums for team members to share diverse perspectives and fuel creativity that can help businesses scale. Attract Top Talent
Today’s diverse workforce wants to feel supported on the job. Many job seekers will not explore opportunities with organizations that do not offer ERGs, mentorship programs, or at minimum, demonstrated commitment to DEI through public policies. Around 4 in 5 hiring managers (82%) believe job candidates are more attracted to companies offering mentorship programs — 85% of job seekers concur; companies are more attractive to them if they offer a mentorship program (Source). Professional Development
Though many ERGs focus on providing spaces for affinity groups, they can also support professional development through upskilling in similar ways to mentoring. For example, both ERGs and mentorship programs may be organized around teaching specific departments – or simply anyone interested – new technologies. 81% of respondents in the Express Employment Professionals poll said they offer mentoring as a way to upskill or reskill employees (Source).
Improve Reputation and Brand Visibility
Consumers feel good about forming relationships with companies that support their communities and people like them. Organizations can demonstrate commitment to supporting employees through culture adds like ERGs and mentorship programs. As a result, successful programs with tangible results can potentially improve a business’s reputation and increase brand visibility.
Compliance
In many jurisdictions, there are legal requirements related to diversity, equity, and inclusion in the workplace. In other cases, certain sources of funding, especially from public sources and granting foundations, may be tied to an organization’s provable commitment to supporting employees. ERGs and mentorship programs provide structures to support employees as well as evidence of compliance, and mitigating legal risks such as lawsuits and fines.
Shortcomings of ERGs and how mentorship resolves them
ERGs and mentorship programs have transformative potential. However, a McKinsey report noted that while many organizations have aspirations to create transformational change through their DEI efforts, most fall short (Source).The reason that many ERGs fail to deliver on their promises of transformational change is precisely because they are volunteer-led, and often do not have clear goals in order to achieve deliverable outcomes, or mechanisms to achieve goals.
Mentorship programs can often share similar goals to ERGs. However, organizational mentorship programs provide the perfect balance between flexibility, tailoring needs to particular participants, while also achieving organizational KPIs for the program overall.
And, ERGs require not only volunteer administration, but also a quorum of participants to be effective. Mentorship programs can thrive in any sized organization and any number of participants.
For example, an enterprise organization may have sufficient demand, interest, and volunteer support to create a thriving ERG to support women of color in the workplace, as well as other sub-communities.
Small and medium-sized organizations may not have a big enough pool of employees in order to support multiple subcommittees. But, it does have the capability to make ideal matches between individual mentors and mentees that are self-selected by the participants, by administrators, or even with AI powered by mentoring software. Kristina Robinson, a Software Engineering Manager and Upnotch™ Mentor, is actively involved in both ERGs and formal mentorship programs. But, she explains that both are essential to support staff, and that in many instances, mentorship programs may be the only viable solution.“Your company may not have enough people to have a LGBTQ self-identifying ERG, or a trans-centric or non-binary specific ERG,” she said, offering one example. If there's not enough then you have to strategically think, ‘Okay, well how can we support staff in the best ways?”
Mentorship provides perfectly-tailored solutions to meet the needs of individual team members, teams, and communities. Robinson said that, compared to informal mentorships, having a formal mentorship program offers “more accountability. There is more structure. You know they're encouraged to meet your mentor at least once a month or you know every other week or once a quarter. There's some framework that allows some additional expectations to be placed,” compared to informal mentorships.
Because ERGs are volunteer-led, they often lack clear goals, are poorly administered, and only create short-term solutions to complex, long-term problems. Mentorship programs provide self-sustaining ecosystems for change. All organizations have to do is invite participants, pair them, and track results.
Increase inclusivity with mentorship
Though ERGs are created to promote inclusivity, when their membership is exclusive, there are fewer opportunities for dialogue between members of affinity groups and their allies.
Christopher Huntley, an Associate Partner at IMB and Upnotch™ member, is creating change to create inclusive spaces for neurodiverse communities through mentorship in ways that ERGs often can’t.
On Upnotch™, Huntley leads a community for neurodiverse professionals as well as allies to create change together. Through ERGs, only neurodiverse individuals might be permitted to join in order to create a safe space.
The Neurodiverse Community on Upnotch™ is open to everyone. “We want you in the space. We want everyone in our space – because we're all in the same space,” Huntley said.
“It's hard to get an ADHD or autism diagnosis. As an adult it could be brutally hard – especially if you're on your own. I would rather let 1,000 people in, even as allies or with an improper self-diagnosis,” than only neurodiverse professionals, Huntley explained.
This approach, he insists, creates most lasting impact for individuals, and also creates ripple effects through organizations, industries, and communities
Popularity and participation rates in ERGs and mentorship programs
ERGs and mentorship programs have become best business practices across all industries. 100% of Fortune 50 companies have mentorship programs (Source). To recap, 90% of Fortune 500 companies offer ERGs (Source). But, the Society for Human Resource Managers estimates that only about 8.5% of employees actually take advantage of ERGs by participating (Source).
No doubt, ERGs offer important opportunities to add to your company’s culture and provide spaces for employees to create supportive communities. However, perhaps because ERGs are less goal directed than mentorship programs, their benefits and trackable outcomes are often less clear. As a result, employees do not have as many tangible incentives to join ERGs. By contrast, organizational mentorship programs have high participation and satisfaction rates because they have impactful and measurable results. Although both ERGs and mentorship programs can both achieve company-wide DEI goals, for example, minorities are more likely to participate in mentorship programs than ERGs. Compared to the 8.5% general participation rate in ERGs, 74% of minorities participate in mentorship programs when offered (Source).Let’s review some of the other measurable results that mentorship programs fuel.
91% of people who have a mentor are satisfied with their jobs, with 57% saying they are “very satisfied.” (Source)
87% of mentors and mentees enrolled in organizational mentorship programs feel empowered by their relationships (Source)
92% of small business owners feel that mentors directly accelerated their growth and helped the survival of their business. (Source)
Mentoring programs increased minority representation in management more than 2.5 times from 9% to 24% (Source).
70% of businesses increased productivity through mentoring (Source)
84% of CEOs said their mentors helped them avoid costly mistakes (Source)
ERGs and organizational mentorship programs share similarly long histories as best business practices. But over the decades, mentorship programs have proven to be more effective in creating transformative change with individual contributors, teams, and companies than ERGs.
Mentoring for everyone with Upnotch™
Mentoring helps professionals achieve their goals and organizations perform their best. Mentorship is essential as a standalone culture add for employees, and is also an essential supplement to ERGs in order to create impactful organizational change.
ERGs will continue to provide important avenues to support employees and improve company culture. However, organizations that only offer ERGs are not exploring the most effective solutions to create meaningful, lasting change. Upnotch™ is the most powerful platform to help both individuals and organizations reach their fullest potential through mentorship. Upnotch™ is agile, allowing businesses to customize mentorship programs to fit their specific needs, ensuring that every participant's requirements are met. Here are some additional benefits to powering your programs with Upnotch™.
Personalized Mentorship Programs
Upnotch™ provides limitless ways for organizations to customize mentorship programs to meet specific objectives, including DEI goals. Administrators can set program parameters and tailor mentoring experiences to align with their organization's goals, culture, and values, even incorporating organizational branding for a seamless experience.
Inclusive Community
Upnotch™’s flexibility allows organizations to build inclusive communities of any kind. Participants can share media, resources, and events, and join affinity groups to connect with others who share similar interests, goals, backgrounds, and experiences. Administrators can manage member access, invite participants directly, and facilitate connections between leaders and aspiring leaders within and outside the organization through Upnotch™’s global network.
deal Mentor-Mentee Matching
Research shows that mentor-mentee compatibility is crucial for successful mentorship. Upnotch™ pairs mentors and mentees through self-matching, administrator selection, and AI algorithms that consider factors such as career goals, skills, interests, and demographics. This ensures well-suited and relevant mentorship relationships, increasing the likelihood of positive outcomes.
Analytics for Optimization and Accountability
Without structured mentorship programs, organizations struggle to optimize and ensure accountability. Upnotch™ offers tools to help businesses track individual mentorships and overall program goals. The platform includes a dashboard to monitor sessions, members, and recent activities. And administrators can receive email digests of mentorship activities. Mentors and mentees can also provide instant, integrated feedback with post-session ratings visible only to admins.
Training, Resources, and Support
Upnotch™ equips organizations and participants with the resources and training needed to design effective mentorship programs. Many mentors outside of structured programs lack the training to adequately guide mentees, while mentees may lack resources to fully benefit from their mentors' knowledge and experience. Upnotch™ provides a library of support materials for all users, ensuring productive mentorships regardless of duration. Upnotch™ also offers exceptional client support by phone, email, chat, and video call.
Scalability
Upnotch™ enables organizations to scale their mentorship programs to accommodate large numbers of participants across various locations or departments. The software streamlines administrative tasks such as participant registration, communication, scheduling, and progress tracking, making it easier to manage mentorship initiatives at scale.
To start building your organization’s mentorship program with Upnotch™, contact us today.
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