10 Challenges You’ll Face When Starting an ERG and How to Overcome Them

Employee Resource Groups (ERGs) can improve workplace culture by supporting diversity and inclusion. However, starting and maintaining an ERG isn’t always easy. Why? Lack of clear goals, proper support, or the right tools to manage their activities.

With 90% of Fortune 500 companies leveraging ERGs, it's clear that when done right, they are a great way to build community, improve workplace culture, and support diversity, equity, and inclusion (DEI) efforts. However, getting them off the ground and keeping them strong isn’t always easy.

In this blog, we’ll explore 10 of the biggest challenges ERG leaders face and some ideas on how to solve them.

10 Common Challenges of Employee Resource Group (ERG) Management

Many ERG programs start with enthusiasm, only to struggle with lack of structure over time.

For ERGs to truly make an impact, organizations need to anticipate and navigate challenges before they become barriers to success. Here are 10 common challenges ERG leaders face and how to tackle them to create a successful and lasting ERG program.

1. Clarity of purpose

An ERG without a clear mission and vision is like a ship without a compass. Without a well-defined purpose, ERGs risk losing focus, pursuing irrelevant initiatives, and ultimately failing to gain credibility within the organization.

To ensure success, ERG leaders should establish a strong, concise purpose statement that aligns with company DEI goals while reflecting the needs of their members.

This statement should guide all ERG initiatives and help members stay on track and measure success. Regularly revisiting and refining this purpose ensures the ERG remains relevant as the organization evolves.

2. Weak team structure

ERGs often start with enthusiastic volunteers, but without proper structure, they can stall before reaching their full potential. The hidden workload of managing memberships, planning events, and organizing initiatives can overwhelm individual leaders.

To avoid burnout and inefficiencies, organizations should appoint a dedicated ERG Program Manager to oversee all groups, along with ERG Leaders for individual chapters. Larger companies may also benefit from support committees to handle specific responsibilities like event planning and communications. 

Scheduling regular check-ins ensures that leadership roles remain effective and sustainable.

3. Lack of leadership support

When executive leaders fail to publicly support ERGs, it sends a message that these groups are not a priority. This lack of visibility discourages membership, delays budget approvals, and limits ERG influence within the company. Additionally, ERG budgets often face delays due to a lack of senior leader approval.

One of the most effective ways to gain leadership buy-in is by assigning Executive Sponsors to ERGs. These senior leaders act as champions, advocating for ERGs at a strategic level and helping to secure funding and visibility. Encouraging executives to speak about ERGs in town halls and company meetings further validates their importance, inspiring employees to get involved.

4. Low ERG awareness

Many employees, especially new hires, are unaware of ERGs or how to join them. Without a structured awareness strategy, these groups may struggle to grow their membership and engagement.

Companies should integrate ERG information into recruitment and onboarding materials to ensure every employee is aware of the available groups. Regular internal communication campaigns, such as email newsletters, intranet features, and town hall spotlights, help reinforce the visibility of ERGs. In addition, leveraging leadership endorsements and employee testimonials can further encourage participation.

5. Lack of a unified platform

Without a centralized system to manage ERGs, employees may find it difficult to discover and join groups. Relying on manual tracking methods like spreadsheets and emails makes it hard for ERG leaders to organize events, monitor engagement, and measure impact.

Implementing an ERG management platform streamlines communication, membership tracking, and event coordination. A dedicated all-in-one solution allows employees to explore and join ERGs with a single click, while ERG leads gain access to dashboards that provide real-time insights into participation and engagement.

6. Employee Resource Group (ERG) membership criteria

Who gets to be a member of which ERG is a pertinent question which is often overlooked while creating ERG membership policies. Overly restrictive membership policies can unintentionally create exclusivity instead of inclusivity and discourage potential allies and limit ERG impact.

To foster a truly diverse and inclusive ERG environment, organizations should adopt an open-to-all policy, allowing both members and allies to participate. ERG software can help manage different member roles and permissions and ensure that groups remain welcoming while still maintaining their core focus.

7. ERG lead burnout

ERG leaders are often full-time employees juggling their regular jobs along with ERG responsibilities. Without proper support, this extra workload can lead to burnout, reduce the effectiveness of the ERG, and increase turnover among its leadership.

Organizations can reduce ERG leader burnout by providing dedicated software that automates administrative tasks like event RSVPs, membership tracking, and communication workflows. Rotating leadership roles annually and offering stipends or career development incentives for ERG leaders also helps sustain engagement.

8. Tracking Employee Resource Groups (ERG) metrics

Many ERGs struggle to prove their value to leadership because they lack clear metrics to demonstrate impact. Without data, it’s difficult to justify budgets, secure resources, or measure progress.

The key is to track ERG metrics from the start. 

Companies should measure membership growth, event attendance, and engagement rates to assess the success of ERG initiatives. ERG software with built-in HRIS integration makes it easy to analyze how ERG participation correlates with employee retention and satisfaction, helping leaders showcase real business impact.

9. Scaling ERG programs

One of the most persistent hurdles for organizations with Employee Resource Groups is achieving effective scale. This challenge has two dimensions: depth and breadth. 

Depth refers to expanding the reach of ERGs within a specific region. Program managers often grapple with establishing more city-wise chapters to cater to a wider employee base. Breadth, on the other hand, focuses on growing the ERG program across different countries, venturing into the global realm. 

The prospect of scaling ERGs, particularly on a global scale, can be quite daunting. The sheer size and the unique cultural and legal considerations that arise in different regions can make program managers hesitant to pursue such expansion.

Fortunately, advanced ERG management platforms offer solutions to navigate the complexities of a large-scale network. These platforms allow for easy chapter creation – adding new chapters becomes a single-click operation. Additionally, program managers can access detailed data specific to each chapter, enabling them to effectively manage the program across various locations. 

However, a more nuanced approach is necessary for global ERG programs. ERG structures and activities may need to be adapted to specific geographical locations to comply with local legislation and cultural sensitivities. By creating shared resources, programs can avoid duplication of effort and facilitate expansion through efficient knowledge sharing. ERG software is a valuable tool to scale ERG programs.

Source: Webinar on ERGs in the Americas & Europe: Key Differences

In the webinar snippet shared above, panelists from Molson Coors Beverage Company discuss challenges of managing global ERG programs. Read the complete webinar transcript here.

10. Ensuring Employee Resource Groups (ERG) compliance

Compliance with data privacy, security, and employee consent regulations is crucial for all employee programs, including Employee Resource Groups (ERGs). This becomes even more complex for global ERGs, where regional regulations add another layer of challenge. Without robust compliance measures, companies face potential legal and financial risks. 

However, ERG leaders and managers, often volunteers with limited legal expertise, may struggle to implement these stringent measures. This can hinder their efforts to expand and grow their ERGs.

The key to overcoming this challenge lies in a well-defined compliance checklist specifically designed for ERGs. 

ERG program managers should work closely with the legal team to develop this checklist, ensuring it incorporates all necessary regulations. Implementing these compliance measures safeguards both ERG leaders and members.

Additionally, establishing a standardized process makes it less reliant on individuals, reducing vulnerability to disruptions caused by staff turnover. This fosters a more robust and sustainable ERG program. 

Download Teleskope’s free Complete Compliance Checklist for ERGs here.

If the aforementioned challenges are not recognized and mitigated in time, Employee Resource Groups can disintegrate and all the efforts put into sustaining them would be in vain. 

It is important to periodically reassess ERGs and their management and incorporate new strategies to ensure they keep growing and serving the DEI goals of the organization.

The Business Case for ERGs: Why Employee Resource Groups (ERGs) Matter

ERGs aren’t just good for employees, they benefit the entire company. Companies with strong ERG programs see:

1. Increased employee retention and satisfaction: Employees who participate in ERGs report higher job satisfaction and stronger connections within their workplace. This leads to lower turnover rates and a more engaged workforce.

2. A stronger DEI strategy: ERGs serve as the heartbeat of an organization’s diversity, equity, and inclusion (DEI) efforts. When well-supported, ERGs help create policies, provide mentorship, and advocate for workplace equity, which will drive a more inclusive corporate culture.

3. Enhanced innovation & business insights: ERGs give employees a platform to share perspectives that leadership might otherwise miss. Companies that leverage ERG insights can improve product development, marketing strategies, and community engagement by ensuring diverse voices are heard in decision-making.

4. Competitive employer branding: Organizations with robust ERG programs are more attractive to top talent. Potential employees, especially those from underrepresented groups, want to see a workplace that values inclusion and employee engagement. ERGs provide that proof.

5. Improved financial performance: Studies show that diverse and inclusive companies outperform their competitors. ERGs help companies tap into diverse markets, enhance customer relationships, and build brand loyalty, all of which contribute to stronger financial outcomes.

   
   

But to get these benefits, ERG programs need leadership support, a clear structure, and the right tools to scale.

How to Secure Leadership Buy-In for ERGs

To gain leadership buy-in, ERG leaders must position ERGs as strategic business assets and demonstrate their tangible impact on overall company success.The most effective way to secure executive backing is by connecting ERGs to key business objectives. 

When leadership sees how ERGs enhance employee engagement, strengthen professional development pipelines, and foster innovation, they are more likely to recognize their value and invest in their growth. 

Providing data-driven insights is equally critical since executives respond to measurable outcomes. Tracking membership growth, event participation, and engagement levels allows ERG leaders to highlight correlations between ERG participation and improved retention, higher productivity, and stronger workplace satisfaction.

But beyond financial backing, active leadership involvement is key. 

Inviting executives to speak at ERG events, participate in mentorship programs, or join roundtable discussions helps them witness firsthand the positive impact ERGs have on workplace culture. Seeing employees engaged and empowered through ERGs transforms leadership from passive supporters into active champions.

How How Employee Resource Group (ERG) Software Can Help

Managing an ERG manually with spreadsheets and emails can be overwhelming.

Using dedicated ERG management software can automate routine tasks, keep all your data in one place, and help you quickly see how your group is performing. This makes it easier to manage the ERG, prove its value, and secure ongoing support.

With ERG software, you can:

1. Automate membership and engagement tracking. ERG software allows employees to easily join groups, track participation, and receive automated event invitations.

2. Centralize event and communication management. No more chasing emails or managing separate chat groups. With built-in event calendars, discussion forums, and messaging features, software makes it easy for ERGs to stay connected and active.

3. Provide real-time data and reporting: ERG success needs to be measured. Software solutions like Teleskope generate real-time analytics on membership growth, event attendance, and engagement trends.

4. Simplify budget allocation and approval workflows: ERG budgets can get stuck in approval bottlenecks. A centralized budget management system ensures transparency, faster approvals, and smarter allocation.

5. Ensure compliance and data security: Global ERG programs must navigate regional compliance laws and protect employee data. ERG software provides secure, role-based access controls to ensure privacy and compliance with global regulations.

   
   

By automating the most time-consuming ERG tasks, companies can reduce administrative burden and empower ERG leaders to focus on strategic impact.

Why Teleskope is the Best Choice

For organizations looking to take their ERG strategy to the next level, using ERG management software like Teleskope can provide the tools needed to track engagement, automate reporting, and present compelling data to leadership.

Why Teleskope? 

Most ERG tools only handle one piece of the puzzle, like event management or internal discussion boards. Teleskope does it all in one simple, scalable employee engagement platform.

Unlike fragmented tools that require juggling multiple systems, Teleskope:

• Automate routine tasks and workflows.

• Provide real-time updates on membership and event engagement.

• Streamline budget approvals and compliance checks.

• Integrate smoothly with your existing HR systems.

  
  

Teleskope helps organizations grow, support, and sustain their ERG programs with ease.

Future-Proof Your ERG Strategy with Teleskope. Book a Demo Today!

Ditch the spreadsheets and disconnected tools. See how Fortune 500 companies use Teleskope to manage their ERG programs effectively. Book a demo today!

Frequently Asked Questions (FAQs):

1. What business impact can implementing Employee Resource Groups (ERGs) have for a company?

Implementing Employee Resource Groups (ERGs) can be a powerful driver of positive business impact. When empowered effectively, ERGs can transform from internal support groups to strategic business partners. 

Companies that elevate ERGs to Business Resource Groups (BRGs) see a direct contribution to core functions. For instance, diverse ERGs can collaborate with marketing, product development, and communication teams to offer unique insights on reaching and serving minority communities. 

Internally, ERG members can champion initiatives that promote inclusive policies, fostering a more welcoming and equitable work environment. Advanced ERG software solutions further amplify this impact by providing data on how ERGs influence employee performance and retention. 

A global consulting firm successfully analyzed data of ERG members vs non-members to reveal insights. Read our "Business Impact of ERGs" case study here

2. What are some key metrics used to measure the success of ERG programs?

A crucial metric is ERG membership growth. 

A steady increase in members suggests employees see value in what the ERG offers. But it's not just about quantity. ERG leaders should also track member engagement. This can be measured by things like attendance at events, participation in initiatives, or surveys that gauge member satisfaction. 

Tracking both metrics provides a well-rounded picture of the ERG's impact, showing not only that employees are joining but also that they're actively involved. 

Other metrics such as event attendance, employee engagement etc. are also indicators. Read all about 10 key metrics every ERG leader should track in our blog.

3. How do ERGs benefit leadership and executives?

Executives benefit from ERGs by gaining direct insights into employee sentiment, improving DEI efforts, and strengthening their company’s reputation as an inclusive employer.