By 2025, Deloitte estimates Generation Z and millennials will comprise 75% of the U.S. workforce. Known as “values-driven generations,” the two groups have impacted how businesses approach essential corporate touchstones like:
- diversity, equity and inclusion (DEI)
- employee well-being
- philanthropy and charitable giving
It makes sense, given a separate Deloitte study revealed 39% of Gen Z and 34% of millennials have turned down employers that don’t align with their values.
Shifting priorities and a focus on DEI programs have helped organizations make strides toward more transparency, opportunity and community connection. Likewise, Deloitte found newer generations respond positively to these efforts.
But how can workplaces build momentum and continue to create a productive workplace that inspires team members now and in the future? With employee resource groups (ERGs). Here’s how:
Corporate philanthropy
Whether by sponsoring a community event or through a formalized program that incorporates an organization’s values, resources and employees, benevolence enhances a business’s culture.
Charitable giving is one of the top six predictors of happiness worldwide, according to the American Psychological Association.
At Paycom, community efforts — and employee buy-in — flourish as we’ve pushed for greater inclusion.
“Over the years, the impact Paycom teams have had on the community and various causes is inspirational,” said Tara Steffens, community affairs program lead at Paycom. “Between Paycom and its employees, our organization gave $2.3 million in 2022 to different nonprofits. We continue refining our efforts and see a lot of opportunity in layering our ERGs into our giving strategy and process.”
The power of ERGs
ERGs offer essential outlets for employees to reflect, share, connect, learn and create a more welcoming workplace. They also improve engagement and retention when strategically developed and deployed.
While 90% of Fortune 500 organizations have ERGs, not all operate effectively, according to McKinsey & Company. The same study reveals 72% of companies express transformative DEI aspirations, but only 47% have transformative structures. Moreover, only 54% of employees nationwide say their ERG truly engages their communities.
Corporate philanthropy and ERGs have a natural overlap. Both programs seek to enhance communities and bolster relevant causes. Bringing the two together maximizes organizational impact and expands the value of ERGs and philanthropy for employees.
The case for purpose-driven philanthropy
More than one way exists to unite ERGs with corporate giving.
First, ERGs must have a stable foundation and a clear understanding of an organization’s aims and values. Leaders must back ERGs through active involvement and awareness, too. ERG members should also have a voice in decisions around community engagement.
“Just this year, we’ve increased our involvement and financial support of touchstone community events like the Martin Luther King Jr. parade, Pride parade and Día de los Muertos festival,” said Tara. “Many of these opportunities were brought to us by ERG members. We see additional opportunities in the future for enhanced authentic community involvement.”
Programs like Paycom’s employee giving initiative are fertile ground for ERG involvement and feedback. Each month, employees can automatically contribute to nonprofits for causes involving:
Recently, Paycom’s ERG leaders and community affairs teams participated in a 2024 collaborative planning meeting. The two groups are continuing to work together to create authentic giving opportunities for the entire workforce.
Philanthropy is most meaningful when employees and employee-led groups meet not only at the end of the process, but throughout. Involving ERGs in the nonprofit selection process, organization vetting, internal communications and more helps further enhance these programs.
Bringing it together
Companies with ERGs harness endless potential to engage people and make a difference. This is especially true for organizations looking to refine preexisting programs.
As with anything in the DEI space, success requires persistence, curiosity, cooperation and empathy. And that process requires trial and error. With the right mindset and strong collaboration, anything is possible.
And if you want to work at an organization committed to DEI and growth, apply to Paycom today!
