Use Employee Resource Groups to Build a More Innovative Company

Ever felt like your company is stuck in a rut, missing out on new ideas? In today’s fast-paced world, staying ahead means constantly adapting and innovating. That’s where employee resource groups come in as a key strategy for improving your business and culture.

What Are Employee Resource Groups?

Think of ERGs as employee-led clubs built around shared experiences or backgrounds. This could be anything from gender or ethnicity to shared values for sustainability. ERGs provide support, career development, and a sense of greater connection to the company and its culture. But their benefits go way beyond that. ERGs can be strategic tools that drive innovation and business growth. Companies including Apple Amazon, Ford Microsoft, and Morgan Stanley all support ERGs, often through their HR or employee diversity offices.

The power of ERGs isn’t just theoretical. Real companies have seen solid results. Research from Theresa Welbourne with the Center for Effective Organizations at the Marshall School of Business at USC highlights how an ERG at a major multinational company built a website dedicated to textured hair care — something they knew was important to their community, but might not have been on everyone’s radar. In another company, the Hispanic/Latino ERG developed new snack food options, drawing on their cultural background to create new popular flavors.

How ERGs Drive Real Results

Imagine a team where everyone sees the world the same way. Not very creative, right? ERGs bring together people with different perspectives, which is a goldmine for creative ideas and innovation.

Here’s how:

• Fresh Eyes on Challenges: Younger employees or those from different cultures might spot trends or customer needs that others miss. This can lead to new products or marketing strategies that take you into new markets.
• Diverse Minds, Brighter Ideas: ERG members come from all areas of the company, not just one department. This cross-pollination of ideas sparks creativity and leads to solutions nobody thought of before, maybe not even your competition.
• The Power of Experience: Your employees have a wealth of experience, both personal and professional. ERGs tap into this by empowering members to share ideas and develop solutions based on their unique backgrounds.

Leverage All Employee Experiences and Strengths

In my latest book, Experiential Intelligence, I highlight the importance of tapping into the strengths gained from all personal and professional experiences, not necessarily what’s just on your resume. When it comes to business, every leader, team, and organization can learn from and leverage the wealth of experience that their employees bring to the table, both personal and professional.

ERG members are a prime example. They possess a wide range of experiences and by tapping into this collective knowledge, companies can unlock a treasure trove of knowledge, creativity, and problem-solving potential. By fostering a culture that values diverse experiences, you’re setting your company up for long-term success.

Making ERGs Work for Your Business

Here are some ways to get started with ERGs and unlock their innovative potential:

• Support Existing Groups or Start New Ones: Make it easy for employees to form ERGs based on their interests. Provide resources like meeting spaces and funding to help them get going.
• Involve ERGs in Planning: Don’t leave ERGs out of the loop. Include them in brainstorming sessions and strategic planning discussions. Their insights are valuable.
• Help Them Learn: Offer training in design thinking, problem-solving, and innovation to ERG members. The more skilled they are, the better they can contribute.
• Track and Celebrate Success: Show everyone how ERGs are making a difference. Measure their impact and share success stories to build momentum and excitement.

By embracing ERGs, you’re creating a more inclusive and innovative company. That means better solutions and more engaged employees — with happier customers a stronger position in the marketplace.