Employees have a long history of forming structured groups within their companies to promote a sense of community, support and inclusiveness in the workplace as well as cultivate career development. These employee resource groups work to increase employee personal development, connection and a sense of belonging — which results in workers who are far more likely to be engaged, loyal and to promote their organizations, research shows. Participating in an employee resource group also helps employees feel higher levels of psychological safety, according to a report from analysis and research firm Workhuman.
Employee-led groups are also closely tied to diversity, equity and inclusion (DEI) efforts. Diversity within organizations has a strong link to performance: According to McKinsey & Company, companies that ranked in the top 25% in terms of the ethnic mix of their executive boards were 33% more likely to be profitable than firms in the bottom 25 percent for diversity.
Among Fortune 500 companies, 90% have these types of employee groups, whether they are called employee resource groups (ERGs), affinity groups, employee networks or something else.
The latest evolution of employee groups builds on ERG benefits by strategically aligning ERG goals with overall company objectives. These more goal-oriented groups are often known as business resource groups (BRGs).
Business Resource Groups Explained
Business resource groups can take different forms at different organizations, but they often focus on underrepresented groups such as women, BIPOC or LGBTQIA+ employees. They can also be formed around professional development themes. While many BRGs are employee-led, they tend to have strong support and guidance from enterprise leadership.
For example, American Family Insurance sponsors several different BRGs, including BRGs for AAPI, those with different abilities, caregivers, Hispanic/Latinx, veterans, and more. They include employees from many locations who represent a variety of divisions, job levels and generations. Their primary purpose is to provide perspective and input into company initiatives for the benefit of the organizations, customers and local communities. Other examples of companies that sponsor BRGs include Kohler, Freddie Mac, Walgreen Boots Alliance and Capital One.
Employee groups such as business resource groups are powerful tools for fostering community, supporting employee development and aligning diversity efforts with business goals. The goal is to leverage their work to create positive change. For example, a study from Fairygodboss showed that women’s resource groups resulted in policy changes, including improved parental leave and mentorship programs. By thoughtfully establishing and nurturing BRGs, organizations can create inclusive workplaces that not only benefit employees but also drive innovation and business success.
BRGs vs. ERGs vs. Affinity Groups
The various terms for company employee groups are commonly used interchangeably, and all employee groups share a common goal of creating community and promoting diversity and inclusivity. However, the three most used names — BRGs, ERGs and affinity groups — may differ in scope and function and are often defined as follows:
Business Resource Groups (BRGs)
These are tightly woven into an organization, aligning directly with its overall strategic objectives. While BRGs offer support and community to their members, they also contribute to defined business goals such as a diverse workforce, talent acquisition, employee retention, customer experience and more.BRGs support business objectives by leveraging the insights and talents of their members to drive initiatives, develop new products or services or tap into new market segments. BRGs often have direct executive sponsorship and may influence strategic decisions and business operations. BRG should have clear goals tied to defined metrics, which are tracked and evaluated on a regular basis to measure progress.
Employee resource groups (ERGs)
An employee resource group is a volunteer-led group focused on creating supportive environments for employees based on shared identities or experiences. They tend to focus on relationships rather than strategy. ERGs typically are closely aligned with diversity initiatives, advocate for employees’ personal and professional needs and may also influence company policies. They offer members networking opportunities, professional growth opportunities and leadership skills development, mentorship and a platform to address relevant challenges and opportunities within the company.
Affinity Groups
Affinity groups are often less formal than ERGs, have less involvement with company leadership and are more organic and employee-centric. They tend to be more focused on fostering connections and personal relationships among employees with common interests rather than furthering business goals.
When to Form a BRG
The decision to form a BRG should be driven by both employee demand and business needs. If employees express a desire for a community where they can share experiences, network and develop professionally, it may be time to consider a BRG. Forming a BRG can also be a strategic move if a company seeks to tap into diverse perspectives to enhance innovation and customer outreach.
BRGs can be especially valuable when a company is expanding to new territories or demographic markets and need the perspective of employees who reflect those markets.
Internal DEI initiatives can also be enhanced via BRGs. For example, if an organization is experiencing churn among employees in specific groups, such as a trend of women leaving the company, leveraging insights from BRG members can be helpful in coming up with a strategy.
BRGs are also valuable during times of organizational change, such as mergers, acquisitions, changes in benefits or shifts in company culture. They provide a stable support network for employees and a channel for leadership to communicate directly with diverse employee groups, fostering transparency and trust.
How to Start a Business Resource Group
A strong foundation from the beginning is key to ensuring success for your BRG. Here are some ERG best practices and steps to take when you’re starting a BRG.
- Identify need and purpose: Start by understanding why employees want a BRG and how it aligns with business goals. Objectives could include improving employee engagement, fostering innovation, enhancing leadership development or supporting DEI initiatives. Clear objectives guide the group’s activities and help measure its success.
- Secure leadership support: Executive sponsorship is critical for BRG success. Leaders provide visibility, resources and strategic direction. Having an executive sponsor who actively participates and champions the group can significantly boost its effectiveness and influence within the organization.
- Establish structure and governance: Define the group’s structure, including leadership roles, membership criteria, meeting frequency, funding sources, budget and decision-making processes. This structure should align with the organization’s policies and ensure that the group remains focused on its objectives and that it has the resources to reach its goals.
- Create a mission: The BRG’s mission, goals, structure and expected outcomes should be outlined in a formal charter. This provides a roadmap for the group’s activities and serves as a reference for both members and business leaders.
- Promote the BRG: Communicate the launch of the BRG across the organization, using internal communication channels to encourage participation. Highlight the benefits of joining the BRG and how it aligns with both employee interests and business objectives.
- Measure impact and adjust: Establish metrics to track the BRG’s progress toward its goals. These could include numbers such as employee retention or scores on surveys indicating employee engagement or satisfaction, for example. Regularly review these metrics and gather feedback to refine the group’s activities and strategies. It’s key to be able to make the connection between the business resource group’s efforts and its impact on members and the whole enterprise.
Using ERG Software to Manage Your BRG
As your BRG grows, managing its operations can become complex. Employee resource group software from Chronus can make a significant difference, providing tools to streamline communication and manage group membership and logistics. Chronus also provides robust reporting features that allow BRG leaders and sponsors to and track business resource group progress and show its impact on the organization.
Chronus can automate event scheduling, send reminders and manage registration. It can also facilitate virtual meetings and discussions, making it easier for BRG members to connect and collaborate, even across different locations. And the platform integrates with other company systems to provide a seamless experience.
As business resource groups grow, leveraging Chronus ERG software ensures these groups remain effective, engaging and impactful for employees and the organization.
