Colored Wooden Figures Business Men Suits on Bars. Employee Readiness for Changes in Organization.

Yet again, diversity, equity and inclusion (DEI) work is sadly caught in the crosshairs of political ideology. However, there is ample evidence that DEI work will most certainly continue (perhaps in different packaging) and that Employee Resource Groups (ERGs) are here to stay.

ERGs: A Strategic Advantage

According to my interview with April Allen, attorney and founder and partner at DEI firm Allen & Unger, “ERGs can be your best friends or your frenemies as a Chief Diversity Officer (CDO) or a leader of DEI. They either can work in strategic alignment with the organization, or they can go rogue and not buy into the leadership’s strategic goals and wear leadership down with complaints and demands with their ‘wish lists.’ From my years of experience leading and advising ERGs, it boils down to whether your ERGs understand the ‘why’ behind their existence in the organization. They do not exist to be the ‘pity committee’ or to catch the train at the ‘commiseration station.’ They exist to drive the business forward.”

Why ERGs Exist

Allen believes ERGs exist for three primary reasons:

1. To help underrepresented communities connect with each other so they do not have isolation and can feel a stronger sense of belonging.
2. To professionally develop its members.
3. To help the organization leverage diversity and turn it into a strategic advantage in terms of market share, better customer service, and innovation.

Best Practices for ERGs

Allen recommends these best practices to fully maximize your ERGs:

1. Quality over quantity. Start with the “why” behind ERGs before you stand them up or add more.
2. Real executive sponsorship. To be fair to all involved, you need an executive sponsor for each group to help endorse or professionally guide how to implement initiatives or make changes. It should not be a lame-duck sponsor, either.
3. Tie it to the business. ERG leadership needs to know the business imperatives and how they can help drive them while developing their leadership, business acumen and understanding of the organizational culture.

ERG Tip #1: Use ERGs to Help Diversify Talent Pools

ERGs significantly contribute to attracting diverse talent. Recent data from LinkedIn showed that employers that spoke up online about diversity saw 26% more applications from women.

ERG Tip #2: Use ERGs to Retain High Performers

In Culture Amp’s 2022 Workplace DEI Report, they cited that ERGs provide a space for employees to feel included in decisions, develop confidence and empower themselves to drive meaningful impact across various areas of an organization. The first official ERG in the United States, the Xerox National Black Employees Caucus (now known as the National Black Employees Association or NBEA, was created in 1970 as a forum for Black employees to advocate for inclusion and change within the company to retain high performers.

ERG Tip #3: Use ERGs to Provide Insights and Innovation to Diverse Communities

Boone recently had some of his ERG leaders attend Afrotech, which aims to bridge culture and technology and celebrate the talents and achievements of Black technology professionals through community building and resources. Boone recognizes that “community is as important as ever, and having spaces like Afrotech enables that through the social connection of networking and insights tailored to professional development regardless of industry or job level.”

Conclusion

As ERGs have grown, so has their power. They now often have their own governance and operating models, missions and strategies, often playing a role in supporting the company’s broader DEI strategy. Organizations that highly value ERG leadership and participation will retain more high performers.

FAQs

Q: What are the primary reasons why ERGs exist?

A: ERGs exist to help underrepresented communities connect with each other, professionally develop its members, and help the organization leverage diversity and turn it into a strategic advantage.

Q: What are some best practices for ERGs?

A: ERGs should focus on quality over quantity, have real executive sponsorship, and tie their work to the business.

Q: How can ERGs help diversify talent pools?

A: ERGs can help attract diverse talent by providing a space for underrepresented communities to connect and feel included.

Q: How can ERGs help retain high performers?

A: ERGs can help retain high performers by providing a space for employees to feel included in decisions, develop confidence, and empower themselves to drive meaningful impact.

Q: How can ERGs provide insights and innovation to diverse communities?

A: ERGs can provide insights and innovation to diverse communities by providing a space for networking, professional development, and community building.