Despite Opposition Perceived in DEI Circles, ERGs Continue to Persist
Once more, diversity, equity, and inclusion (DEI) initiatives often find themselves in the middle of political debates. Nevertheless, there's substantial proof that DEI efforts will carry on (possibly in different form) and Employee Resource Groups (ERGs) are here to stay.
Based on my conversation with April Allen, attorney and co-founder and partner at DEI firm Allen & Unger, ERGs can serve as valuable allies or sources of tension for Chief Diversity Officers (CDOs) or DEI leaders. They can collaborate harmoniously with the organization or operate independently, contradicting the leadership's objectives and placing undue pressure through relentless complaints and demands. From my experience leading and advising ERGs, the key factor is whether your ERGs comprehend the purpose behind their existence within the organization. They are not meant to be a 'sympathy committee' or a place for commiseration. Their role is to drive business progression.
Allen identifies three main purposes of ERGs:
- To assist underrepresented communities in connecting with one another, reducing feelings of isolation and strengthening a sense of belonging.
- To professionally develop its members.
- To help the organization turn diversity into a strategic advantage, leading to improved market share, customer service, and innovation.
Allen has encountered organizations without ERG policies or executive sponsors, granting ERGs excessive freedom. She laments that "chaos" prevailed almost 90% of the time in these organizations' ERGs. They lacked organization, solid ERG leadership, and strategic objectives with quantifiable results. Absent a clear understanding of how to align with business goals and make recommendations endorsed by leadership, ERG leaders felt their time was being wasted and their emotions manipulated. This left DEIB (diversity, equity, inclusion, and belonging) leaders and their teams drained and even considering resignation in two instances.
Allen suggests these best practices to fully maximize your ERGs:
- Prioritize quality over quantity. Understand why ERGs exist before setting them up or expanding.
- Real executive sponsorship. Every ERG requires an executive sponsor to endorse or guide the implementation of initiatives and changes in a fair and proactive manner.
- Link it to the business. ERG leadership needs to know the business imperatives and how they can contribute to their achievement while developing their leadership, business acumen, and understanding of the organizational culture.
According to The Diversity Movement, 90% of organizations utilize ERGs, of which 80% of ERG participants report a heightened sense of inclusion. What would the enhanced feelings of inclusivity among the majority of your employees be worth to your company? ERGs can aid in addressing business challenges, such as enhancing the variety of talent pools, boosting retention of top performers, and offering insights to serve diverse and underserved communities more effectively.
ERG Tip #1: Utilize ERGs to Expand Talent Pools
ERGs are instrumental in attracting diverse talent. Recent statistics from LinkedIn show that companies promoting diversity online received 26% more applications from women.
Global DEI leader at tech firm Monday.com, Adam Boone, stated during our interview, "As competition for top talent intensifies globally, the most successful organizations will be those that are most in line with the talent market and cultivate environments where talent from any background or identity feels empowered to thrive with purpose-driven work."
ERG Tip #2: Use ERGs to Retain Top Performers
In Culture Amp’s 2022 Workplace DEI Report, they cited that ERGs serve as a space where employees feel included in decision-making processes, build confidence, and empower themselves to have an impact across various organizational areas. 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 established in 1970 to advocate for inclusion and change within the company to retain high performers.
According to McKinsey, "The most effective of these groups (ERGs) enhance feelings of inclusion among traditionally underrepresented segments of employees, improve the hiring and retention of diverse talent, and increase the representation of diverse talent in alignment with the organization's DEI strategy."
As ERGs have expanded, so has their influence. Many now have their own governance, operating models, missions, and strategies, frequently playing a role in supporting the organization's broader DEI strategy. Companies that value the leadership and participation of ERGs retain more top performers.
ERG Tip #3: Leverage ERGs to Offer Insights and Innovation to Diverse Communities
Recently, Boone's ERG leaders attended Afrotech, which aims to bridge culture and technology and celebrate the achievements of Black technology professionals through community-building and resources. Boone emphasizes that "community is as important as ever, and spaces like Afrotech provide opportunities for social connection and insights tailored to professional development, regardless of industry or job level."
"For Black professionals attending Afrotech to perceive this not as evidence of a lack of talent or qualifications in the underrepresented and historically marginalized community, but rather as the result of organizational processes upholding biases to support a select few instead of the many, is a powerful reminder of the purpose of DEI work," Boone said. "Hearing my team discuss their experiences at Afrotech reinforced that goal consistently, regardless of its acronym or name change."
While Special Interest Groups (SIGs) are on the rise and shows no signs of slowing down, it's clear that those spearheading these groups deserve recognition for their commitment. This can be achieved by shedding less critical tasks from their responsibilities, thereby creating space for the additional work, or by rewarding them financially for their extra efforts.
Insider tips for ERG leaders: Utilize ERGs to broaden the talent spectrum, boost employee retention, and offer distinctive perspectives and innovation to diverse groups.
- To effectively improve my role in an Employee Resource Group (erg), I should consider how it aligns with the organization's business goals and seek an executive sponsor for guidance.
- April Allen, a co-founder and partner at DEI firm Allen & Unger, has observed that organizations without clear ERG policies or executive sponsors often encounter 'chaos' within their ERGs.
- DEI initiatives, such as Employee Resource Groups (ERGs), can face pushback from leadership or operate independently, potentially contradicting the organization's objectives.4.ern strategies, as identified by Allen, can help organizations turn diversity into a strategic advantage, leading to improved market share, customer service, and innovation.
- By fully maximizing the potential of Employee Resource Groups (ERGs) through best practices like prioritizing quality, securing executive sponsorship, and linking it to business goals, companies can retain top performers, expand talent pools, and offer insights to serve diverse communities more effectively.
