Nettie Nitzberg

According to PwC Insurance’s Top Issues Annual Report for 2016, “Millennials will soon predominate in the workforce, and insurers need to differentiate themselves from companies in other industries as being attractive places for Millennials to work.”

Although the above statement holds true for many industries in the U.S., it’s particularly important for insurance companies. As a whole, the insurance sector is facing slowing growth and more demanding customers who want new insurance solutions and seamless service despite the large and complex size of many companies. Compounding the problem, most insurance companies face an impending talent crunch due to an aging workforce.

One way to tackle the imminent talent issues is finding new ways to recruit and hire by focusing on internal benefits and opportunities across the complex organization, as well as engaging and developing current employees who tend to work in their own silos within matrix organizations. How can an insurance company achieve this? One way is by developing and launching Employee Resource/Network Groups (ERGs).

ERGs are essentially “grassroots” programs started and run by employees (with oversight and guidance from human resources and their executive sponsor). They often provide camaraderie and friendship for the members, as well as offer forums for employees to connect around issues that are important to them. ERGs influence and reflect the culture of the company. They can be drivers of initiatives important to employees and to the company. And ideally, they create a fun way for employees to learn and grow from each other.

In ERGs, employees join together in their workplace based on shared characteristics, life experiences or interest around particular activities. ERGs are designed to provide support, networking and enhanced career and personal development, and are inclusive of everyone, especially people who are not of that group’s demographic but want to learn more about it or be an ally.

The benefits of an ERG for insurance companies are undeniable. For one, they provide a forum for employees to experience professional (and personal) growth through stories and experiences of their peers. Simply by the design of being an employee-led initiative, they empower and encourage employees to take on leadership opportunities. Given that the insurance industry needs to attract a younger workforce, this opportunity for growth and development is invaluable, and may in fact encourage both new employees to join and existing employees to stay on longer than they otherwise might.

ERGs are also a gateway for employees with similar interests, shared characteristics or life experiences to connect, regardless of job, salary, level or function, across the organization and across the globe. ERGs reflect and stimulate organizational and cultural diversity, creating an opportunity for networking by engaging employees and providing opportunities for building connections and igniting relationships within and among the myriad departments and divisions (and sometimes locations) of an insurance company. Outside the company, many ERG members advocate for larger cultural and social goals. Community service has been noted as a significant part of ERG activity; this enhances company reputation while fulfilling personal goals of the employees as well.

For employees interested in starting an ERG, here are a few guidelines to encourage:

• Gather a core team (minimum of five people) that wants to be a part of the ERG.
• Be sure to clearly state the role of the resource group and how it will impact the business.
• Identify and engage an executive sponsor, preferably from the senior ranks of the organization.
• Determine the name of the ERG, which should reflect the group’s mission and vision and should be decided upon collaboratively.
• Write a business charter that identifies short and long-term goals and measurements of performance. Include mission and vision, goals, benefits, organizational structure, initiatives, measure of success and budget.
• Determine the organizational structure and meeting schedule, with input and support from the executive sponsor.
• Once the goals have been developed, it is critical to plan the initiatives that will engage your ERG members. Your programs should be tied to these goals.
• The key to increasing membership, organizational awareness and attendance to events is successful communication. Each ERG should create a communication plan with targeted messaging, tied to the goals and initiatives to effectively promote the group and the group’s activities.

Although insurance companies are known for being affected by silos and matrixes, it doesn’t have to be that way. Insurance organizations can use ERGs to help cut down the hierarchy and offer great opportunities for people to meet other people across the organization that they might not otherwise interact with. By encouraging an environment where ERGs can thrive, insurance organizations will find that they have also been fostering a culture of professional growth and empowerment, with employees that are building vital bridges within the organization that augment productivity, creative problem-solving and overall morale. Happy and engaged employees contribute to an organization’s success and, even better, thanks to this new work atmosphere, chances are these employees will be planning to stick around for a while!

Nettie Nitzberg is founder and principal of Boston-based West5 Consulting, which focuses on solving people problems that impact business success. She can be reached at nettie@west5consulting.com.