HR 101: Where did ERGs come from?

Welcome to HR 101. Class is now in session. Today’s discussion will focus on the history and evolution of employee resource groups (ERGs).

The history. ERGs are associations within organizations where workers with similar backgrounds and interests can come together to socialize and positively impact their communities. Xerox created the first ERG, called the National Black Employee Caucus, in 1970 in response to the racial tensions of the previous decade, according to research from the Boston College Center for Work & Family. A decade later, Xerox expanded its ERG network by creating the Black Women’s Leadership Caucus.

Before long, other employers followed Xerox’s strategy and created ERGs for the different communities within their organizations. Hewlett-Packard, for example, is credited with creating the first ERG for LGBTQ+ employees in 1978, according to Philadelphia Gay News.

Fast-forward. ERGs have grown in popularity since 2020, when employers, in response to the Covid-19 pandemic and police murder of George Floyd, sought to connect employees and increase DE&I efforts. By 2021, 40% of employers offered an ERG, a 9% increase from 2020, according to Sequoia data. Some organizations, including Salesforce, Netflix, and Betterment, have even hired program directors whose job it is to lead ERGs, HR Brew reported.

They’ve also become a key part of organizations’ recruitment and retention strategies. Indeed, 55% of companies say ERGs have positively impacted their recruiting efforts, while 75% say they’ve helped retain employees, according to a 2021 Salesforce survey.

“The most innovative HR teams view these groups as a dynamic retention tool,” Christine Michel Carter, an author and corporate advisor, told SHRM. “It’s ultimately up to the employer to actively monitor employee morale and provide opportunities for advancement, but ERGs are an often-untapped resource.”

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