How To Create an Effective Employee Resource Group Policy [FREE Template]

An employee resource group policy is key to formalizing your organization’s ERGs. It plays an essential role in outlining these groups’ guidelines, objectives, and governance in line with the broader organizational goals.

Let’s take a closer look at what employee resource groups do and how to create an effective employee resource group policy for your organization.

What does an employee resource group do?

Employee resource groups create community-led solutions to workplace and workforce issues that are likely more unique to that community. They are a way for companies to bring their Diversity, Equity, Inclusion and Belonging (DEIB) policies to life and show support to those groups.

ERGs give employees space to share their experiences and support each other. They can discuss how they are being affected by specific situations, policies, or company decisions.

• Create psychological safety and wellbeing among a potentially vulnerable group
• Develop talent internally, especially as an informal way to recognize potential leaders
• Increase a sense of belonging, which, in turn, can improve retention
• Gather feedback and ideas for further improvement of DEIB initiatives
• Give ownership to employees over their development
• Tackle company-wide challenges and address problems openly and swiftly
• Create an opportunity for leadership to hear employee needs.

You may hear ERGs referred to as affinity groups, which are typically less formal employee-led groups without direct ties to the organization’s DEIB objectives.

More recently, there’s been an off-shoot of business resource groups (BRGs). The business resource groups focus more on employees with similar goals or interests, e.g., Public Speaking Groups. That way, BRGs are more about networking and development than any particular group’s needs.

In the last 60 years, the workplace has changed a fair bit, and so ERGs should change to reflect the needs of modern employees. Some have modernized it by opening up membership to “allies”. An example is male members in the female-oriented ERG being invited to join. Others organize outside of the workplace. For instance, they volunteer to provide warm winter lunches for children at underprivileged schools.

Over 90% of Fortune 500 companies support some kind of ERGs in their organization. Despite their popularity, recent moves, such as Elon Musk axing all such groups at Twitter, have some leaders questioning whether they should be doing the same or looking to overhaul them altogether.

In this time of change, set out the purpose and the meaning behind the ERGs at your organization, no matter how big or small.

Returning to basics can remind you why they exist and show you the path ahead. I currently am in a company of 35 people, and I just created the Women’s ERG with 10 of us, which was, in my opinion, the right time to do so. This is why it is essential to go back to the foundations and create a clear set of policies to outline the purpose.

What is an employee resource group policy?

An employee resource group policy is a formal document that defines the purpose, structure, and operational guidelines of ERGs within an organization. It sets out the objectives, membership criteria, leadership roles, funding provisions, and the process for establishing new groups.

There are two levels of policies to look at – one is company-wide, and the other is group-specific.

Company-wide policies are important as they guide anyone who wants to create an ERG about what they should and should not do. It is a great show of initiative to have an employee volunteer to organize a group. However, they may not know what your organization wants to encourage or discourage.

Group-specific policies contain the purpose, mission, and terms of engagement for each ERG. It should also cover things like governance and forms of communication. It gives members and potential members a clear picture of whether or not they can participate and if they align themselves with what the group is about.

What to include in an employee resource group policy

The policies governing the creation, running, and participation of ERGs can vary depending on the organization or the group. Yet, there are certain foundations that each policy should have. Here are some tips on what to include at the two levels of employee resource group policy.

Company-wide

The company-wide ERG policy should inform employees how to create and run an ERG themselves. They must apply equally to all groups to ensure fairness and should include things like:

Statement of purpose

• What is the purpose of these groups in your company’s vision, and where is their place in achieving the company’s mission?
• What kind of commitments does the organization make to employees about how they will support an ERG once created?

Guidelines on how to create an ERG

• Do the group founders need to get an executive sponsor? Who is eligible to be that sponsor, and what must their level of involvement be, if any?
• Who do they need to inform about creating a new ERG, and what is the approval process? Do they, for instance, need to make a business case?
• What are the requirements for group formation? E.g., have a policy, bylaws or a code of conduct, and a governance structure?
• What kind of support can they get in creating the ERG? For example, during the approval process and later for announcing the formation of the group.
• What are the budget and resources available, and how can the group access them?

Information on what is not allowed

• Are ERGs allowed to exclude certain groups of employees? An example could be female Muslim groups not being open to male members on the grounds of faith and the kinds of topics that would be discussed.
• Are employees allowed to form politically affiliated groups?
• Are they allowed to form a group in opposition to another group?
• What kind of activities may not be covered? For instance, collective bargaining agreements might need to be under a union, not an ERG.

Reporting requirements

• Events, membership numbers, event attendance
• Initiatives launched
• Satisfaction score from ERG members to measure what they think about the group.

Relationship with HR

• What support do ERGs need from HR? How exactly will ERGs collaborate with Human Resources to raise issues identified and work on potential solutions?

Group-specific policy (charter)

Group-specific ERG policies, also sometimes called charters, can be a bit more varied depending on the needs of each group and their purpose. For example, if it’s a business resource group around public speaking, the membership rules might differ from that of an ERG for Black female employees.

However, the basics have to be there to ensure that each group member understands where they stand and what the group is about. This should be clear regardless of whether they are a new starter or an employee of many years.

Here are some things to make sure your ERG policy covers:

Mission and objectives

• What is the purpose of this ERG’s existence, and where is it going?
• How does it align with the company’s overall mission and objectives?
• How the group aims to achieve these objectives?

Membership requirements

• Is the ERG open to allies? For example, an LGBTQ+ group is open to employees who do not identify as such but are allies. How would allies participate if separate from members? Many modern companies require their ERGs to be open to all who want to join, so check the company policy first.
• How are members expected to participate? Do they vote, show up to meetings, or help organize events? Is there a mandatory minimum for participation? Most groups make it voluntary and leave this fairly open, as doing otherwise may interfere with the employee’s actual work.
• What are potential grounds for exclusion, if any? An example would be using the ERG platform to advocate against another group.

Governance and leadership roles clarification

• Who is the leader, how is a leader selected (e.g., vote or rotation), and how often? If leadership rotates, more people can show their leadership skills outside of their work and develop further. Additionally, this helps avoid groupthink and the creation of authority bias.
• What are any other positions needed to run the ERG, such as secretary, treasurer, and event manager? What is their purpose, how are they selected, and how often? Depending on the size of the ERG, there may need to be multiple roles like this and even regional leaders, so your ERG policy may need to cover a reporting structure, too.

Decision-making processes

• How are decisions to be made in the group? What kinds of decisions are expected to be made? Is unanimity required or a simple majority? Think of it like a political party when writing your ERG policy.
• Is there an appeal process? How can people bring up issues that they believe were not appropriately heard to the table and get them reviewed?

Bylaws

• Code of conduct: What conduct is to be encouraged, and what is to be discouraged? These should be mission-focused groups and not a space for people to come in and gossip, for example.
• Accountability and transparency: It is very important in the building of trust to have clarity on what the ERG is doing and advocating for. This will earn the trust of members and executive leadership alike.
• How often is the policy to be reviewed? No policy can last forever. Set a term on how often this needs to be checked, and likely, it’ll need to be reviewed a bit more often at the start while the ERG is getting set up.

HR tip

Develop a comprehensive employee resource group toolkit for ERG leaders and members. This toolkit should provide essential resources, templates, and guides on best practices, event planning, communication strategies, and measurement of outcomes. The document should serve as a ready reference to support the effective management and growth of ERGs within the organization.

How to write an employee resource group policy: Best practices

• Align with company policies: Ensure that the ERG policy is in harmony with existing company policies, particularly those related to non-discrimination, harassment, and professional conduct.
• Promote voluntary participation: Emphasize that involvement in ERGs is voluntary and should not impact an employee’s career progression or job security.
• Highlight confidentiality and privacy: Address confidentiality and privacy concerns within the ERG policy, particularly in relation to sensitive discussions and personal information. This reassures members that their participation is safe and respected, fostering a trustworthy environment for open dialogue.
• Craft a policy template: Design a standardized ERG policy template that outlines critical components such as purpose, governance, membership, ERG activities, and funding. This template will ensure consistency across all ERGs, helping new and existing groups to align with organizational values and regulatory compliance while streamlining the process of policy development and implementation.
• Keep your policies up to date: Allow ERGs to propose and adjust their focus areas or objectives annually based on member feedback and changing organizational priorities. This could include the ability to shift resources towards emerging DEIB topics, adapt to new remote or hybrid work environments, or tackle current social issues that impact members.

Key takeaways

It can be easy to assume that all you need to do is gather people from the same identity, race, orientation, and background in the room and make the magic happen. However, each of us is so much more than just that one identifying characteristic.

By creating a robust policy for your employee resource group, you can make sure that the community you are gathering unities around specific goals and impacts the company. That way, your company creates an environment that doesn’t only look at hiring people from diverse backgrounds – it looks to help them belong.

FAQ

The rules for employee resource groups (ERGs) are outlined in the organization’s ERG policy, which establishes guidelines on membership, leadership, meeting conduct, funding, and activities to ensure alignment with the company’s diversity and inclusion goals. This policy provides a structured framework for creating, operating, and evaluating ERGs, ensuring their activities contribute positively to the workplace culture and organizational objectives.

HR can support employee resource groups by providing them with the necessary resources, guidance, and infrastructure to thrive. This includes funding and other resources, training for leaders, and organizational visibility platforms. Additionally, HR can facilitate the integration of ERG initiatives with wider organizational goals, offering strategic alignment. That helps get ERG efforts recognized and valued at all company levels.