Company swag is a low-lift method to foster team spirit. Commemorative t-shirts, pens and water bottles, adorned with company logos and designs, are commonly shipped out to remote home offices or laid out on desks of new hires. It costs relatively little and physically imbues inclusion and morale throughout the workplace. When employees rep their home team and the comforting sight of a team jersey instills familiarity, it becomes easier to buy into company culture.
It stands to reason that the same logic could lend itself to boosting engagement for employee resource groups (ERG). But for Emory Lydick, talent resourcing manager and co-lead of the Women’s ERG at Wish, that’s a mistake. “While swag is fun to receive, its impact is brief. Relying on a cool logo and free swag to recruit members is not a long-term strategy.”
ERGs without strategic foresight or identity are doomed to fail, and the consequences concern more than company spirit. “Too often, ERGs start with a bang and fizzle out,” said Lydick. According to the Wall Street Journal, some companies have given these groups a voice in current events such as the pandemic and recent social movements. As it stands, ERGs have become invaluable champions of employee representation and pillars of corporate culture. According to Sequoia, 40 percent of companies in 2021 have ERGs, a nine percent increase from the year before.
While straightforward on paper, well-run ERG programs take a combination of robust leadership and long-term vision. Any less and they run the risk of signaling the wrong message. “It is important to remain in tune with the members so that goals can be adjusted as the ERG grows in scale,” said Cymone Williamson, associate DEI program director at The RealReal. “They must be empowered and enabled to succeed, including having access to an adequate budget, leadership development and leadership support.”
Far from being siloed clubs that only host events, ERGs are instrumental in paving the way for a more equitable workplace, and they help set the tone for how a company — and its brand — presents itself publicly and internally. Harvard Business Review states that ERGs not only educate employees, but serve as a valuable resource for developing internal leaders, increasing retention rates and extending the talent pipeline to underrepresented groups. Companies with successful ERGs reap the benefits of aligned goals and the strategic advantages of a diverse workforce.
Like employees within a company, these subgroups thrive when spotlighted by those in positions that can effect change. To that end, Built In SF sat down with DEI leaders from TheRealReal and Wish to see their recipe for ERG success.
The RealReal is an online marketplace for luxury retail items. The company’s platform allows customers to safely buy and sell goods, backed by a network of in-house experts that includes gemologists, horologists and brand authenticators. When it comes to workplace culture, The RealReal values its DEI initiatives, especially the ERG program. “ERG groups should be mission driven, prioritize the constituencies they represent and have a connection to the company’s DEI strategy, so that there is alignment with larger business initiatives,” said Associate DEI Program Director Cymone Williamson.
In your experience, what is required to make an ERG program successful?
Without a long-term vision, ERGs may find themselves delivering initiatives but not making the desired impact. ERGs must have a clear leadership structure that defines critical roles and responsibilities that are core to their operation, including dedicated committees. A full leadership team increases capacity, provides individuals with a safe way to stretch outside of their comfort zone and develops new skills while cultivating a succession plan.
ERGs must be empowered and enabled to succeed, including having access to an adequate budget, leadership development and leadership support. The latter can come in many forms ranging from executive sponsorship to providing ERG leaders with visibility during town halls or department meetings. The more senior leaders recognize ERG contributions, such as within performance reviews, the more ERG leaders will feel valued and empowered.
What are some common mistakes companies make when implementing ERGs?
ERGs can make an incredible impact on workplace culture, especially when there is leadership support and a defined strategy for advancing DEI. If this is not where you are as a company, it may not be the right time to start them. Employees can also sense when there is a low value placed on DEI and may not engage as a result. Having ERGs with no strategy in place can inadvertently signal the wrong message. There are several ways through which ERG leadership teams form, some organically, others through a nomination, interview and selection process.
However ERG leaders are recruited, it’s important to make sure they are set up for success. It’s unreasonable to expect that someone who is not doing well in their job performance will be successful taking on additional responsibilities with an ERG. One of the most effective ways to recruit high impact ERG leaders is by partnering with HR to identify strong performers with leadership potential. These should be individuals who demonstrate the competencies needed by the ERG and may be interested in getting actively involved. ERG roles are an underrated talent development tool for working on leadership skills tied to career goals.
ERGs can make an incredible impact on workplace culture, especially when there is leadership support and a defined strategy for advancing DEI.”
How are your team members celebrating Hispanic Heritage Month this year?
Our Hispanic and Latino Organization for Leadership and Achievement, also known as the HOLA ERG, planned several engagements to celebrate Hispanic Heritage month. All events align with their mission of building community and increasing cultural awareness. Both members and allies are invited to participate. The marquee program will center around the importance of financial wellness presented by Jannese Torres-Rodriguez, from the Yo Quiero Dinero Podcast. In the one-hour discussion, Janesse will be joined by ERG leaders to discuss the importance of maximizing your money in a volatile market.
In addition, the ERG will provide opportunities for personal wellness with an intention-setting meditation hosted by Manjit Meditation. HOLA is also creating space to foster social connection, increase engagement and celebrate the culture with two events that will bring people together, in-person and virtually. First, a kickoff membership drive with food, music and giveaways. Later in the month, the group will host a trivia night focused on the contributions of Latinos in American culture presented by BarNone Games.
Wish is a mobile ecommerce platform that connects consumers with a wide selection of goods delivered to them directly. The company understands that in order for employees to support such a large network of buyers and sellers, it must foster a healthy company culture that promotes DEI initiatives. “Successful ERGs are ones that provide true value to the individual members throughout their time at the company,” said Emory Lydick, a talent sourcing manager and a co-lead for Women’s ERG at Wish.
In your experience, what is required to make an ERG program successful?
Successful ERGs are ones that provide true value to the individual members throughout their time at the company. From welcoming new hires to saying farewell to those who are moving on, successful ERGs are champions of their members at every stage of their employment. Be visible, be easily accessible and be sure your leaders are positive ambassadors of your group.
Additionally, consistency and adaptability are key. Provide a consistent experience for the members, from the cadence of meetings to the frequency and style of communication. However, build in the ability to flex when current events or company changes may impact your community.
What are some common mistakes companies make when implementing ERGs?
Be clear with your members that this is not the place to discuss confidential HR matters. Be quick to stop discussions from descending into rants or complaints. Instead, provide resources to those members who may have an issue that needs further addressing.
Too often, ERGs start with a bang and fizzle out.”
How are your team members or related ERGs celebrating Hispanic Heritage Month this year?
The Latinx ERG will be kicking off the month with a new name, Somos Wish, which translates to “We are Wish.” It means we are here, we are part of Wish and we belong. It encompasses the true meaning of belonging and inclusion for Latinx and Hispanic people. We also wanted the name to be inclusive, which means it had to work for both Spanish and Portuguese speakers — Somos Wish does that.
From a social perspective, we are throwing tropical themed happy hours with live music, holding virtual events such as Zumba classes and a presentation from the Red Cross with emphasis on the necessity for diverse blood donations, and hosting several fun internal communications sharing our favorite vacation spots, family traditions, recipes, fun facts, motivational quotes, movie recommendations and music playlists.
