Are Employee Resource Groups Only For Big Companies? Short Answer: No
The need for community & a sense of belonging doesn't just apply to large, global organizations. In a world characterized by a disparate, diverse workforce and global uncertainty, these benefits are more vital than ever before, no matter where you work. It's true, most companies with ERGs are pretty large, but we are seeing more and more midsize to small businesses stepping up to the plate & building community amongst their people. Let's look at the numbers.
90% of Fortune 500 companies have established ERGs, Bentley University reports. As you might expect, the companies that earn this distinction make a lot of money and employ many people. For instance, Fortune 500 companies employ 60,000 employees on average. Walmart leads the pack with over 2 million employees (all invited to join one of their 7 ERGs).
But, here's the flipside of the coin. At just 60 employees, RaiseMe launched two ERGs to align with their DE&I strategy and create internal leadership opportunities. And the micro-grant company isn't alone. Other small businesses offering ERGs include Yieldstreet (a Fintech group of 100), LeagueApps (an IT organization of 78), and Lose It (a wellness company of 42). SevenFifty boasts a software team of 99 employees and 5 ERGs to choose from. Only two less than Walmart!
This isn't a matter of can or cannot. Smaller companies can create & manage ERG opportunities for their employees. So, why the discrepancy? The Kessler Foundation found that while almost half (47%) of large companies offer affinity groups, that percentage shrinks to 25% for medium companies and falls to 10% for small corporations. A survey of the Biotech industry by the Center for Talent Innovation found that 92% of small companies did not have ERGs.
This isn't a massive surprise for several reasons. As Elaine Montilla from Forbes points out, ERGs are often volunteer-led, have little administrative support, and typically don't have a sustained budget. If you've ever worked for a small company or startup, you know it's an all-hands-on-deck situation 99% of the time. Volunteer opportunities inside of the workplace simply aren't a priority. (If ERG leaders got paid, well, that's a different story).
Small businesses (with 250 employees or less) make up 99.9% of all employers in the US. Imagine what might happen if these organizations started ERGs or affinity groups at the start– as an early, sustained commitment to diversity?
Companies of all sizes have built successful ERGs; you can build them, too.
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