Bearing the burden: Why ERGs shouldn't be the face of DEI

Written by Elizabeth Rene , DEI & Talent Development Consultant at Perfeqta?

With Diversity, Equity, and Inclusion (DEI) efforts facing growing resistance and political pushback , it's harder to tell if a company is genuinely invested or just going through the motions.

One thing remains clear: while many companies are scaling back on DEI roles, reports, and visible commitments, Employee Resource Groups (ERGs) are still around.?

In fact, 90 percent of Fortune 500 companies have ERGs , according to McKinsey. But are ERGs becoming a stand-in for real DEI work? And if so, is that enough?

ERGs are valuable for fostering community and support, especially for historically excluded groups. However, they are often mistakenly seen as a "quick fix" or standalone solution for ending discrimination, closing opportunity gaps, and increasing access in the workplace.?

As resistance to DEI grows, companies are scaling back on comprehensive DEI strategies and leaning on ERGs to fill the gap. This allows organizations to appear committed without making meaningful changes.?

In reality, ERGs alone cannot address these deep-rooted issues without broader, systemic changes and commitment from the entire organization. And they shouldn’t carry the weight of a company’s DEI strategy.

Here are three key reasons why.?

1. Over-reliance on ERGs shifts responsibility away from leadership

When ERGs are the face of DEI at an organization, they are met with unfair expectations of driving change with limited resources and authority. In some situations, ERGs are left as the scapegoat to solve problems that are outside of the average employee's sphere of influence.

When ERGs fail to be the end-all, be-all to all of a company's DEI-related issues, they are blamed for being ineffective or unstrategic. When in reality, company leaders have absolved themselves of any responsibility for achieving DEI goals.?

We all have a role to play in driving DEI initiatives. ERGs are just one part.

One way to ensure that company leaders are playing a role in the success of ERGs is by identifying executive sponsors for each group. As an executive sponsor , you are positioned to get leadership buy-in and ensure ERG goals are aligned with business goals.?

2. Relying on ERGs without a connection to broader strategies results in limited impact

A successful ERG has the power to transform business performance, employee engagement, and company culture at any organization.

But this can only happen if a company has connected ERGs to their broader goals, strategies, and priorities for the business. However, only 20 percent of companies are measuring their DEI initiatives’ impact, according to Workday .?

Companies can include ERG leaders in decision-making processes that impact their group and the company’s culture. Seek their input on DEI policies, resource allocation, and organizational changes that may affect ERG members.?

By including ERG leaders in these discussions, organizations can make decisions with an understanding of how they’ll impact historically excluded employees. ERG leaders can also make decisions for their group that align with the company’s larger DEI goals.?

Check out our case study: How Phreesia built an ERG that champions equity and inclusion

3. DEI strategies should include ERGs but must go beyond ERGs

Employees across all levels should advocate for DEI strategies that go beyond ERGs and hold senior leadership accountable for addressing systemic issues.

When building a DEI strategy, there are essentially three different stages a company will find itself in: Structuring, Scaling, and Sustaining. ERGs alone cannot scale or sustain DEI at an organization.

A successful DEI strategic plan touches all areas of a company. This means organizations

must make DEI a strategic priority with dedicated resources, team member accountability,

and trackable metrics to measure progress.

At Perfeqta, we use a DEI Framework that includes six categories of success for identifying an organization’s DEI maturity:

1. DEI Governance
2. DEI Communications
3. Talent Programs
4. Stakeholder Engagement
5. Employee Experience & Culture
6. Accountability & Reporting

ERGs may fall under two or three of these areas, not all six. This means companies should support ERGs as part of a larger DEI strategy with proper resources and leadership involvement, but ERGs can not be the entire strategy.?

During times of DEI resistance and pushback, companies must be clear on what their commitment to DEI looks like. Leaders should take ownership of DEI efforts rather than delegating the responsibility to employees who have volunteered their time to support ERGs. And employees should continue to advocate for companies to invest in ERGs and compensate leaders for their time.

If your company is interested in building a DEI strategic plan or looking for more support for your ERGs, get in touch with our team here .?

ERG, DEI, and HR Leaders! Join our Virtual DEI Roundtable

If you’re a DEI, ERG, or HR leader who’s feeling the pressure to deliver DEI results during a time of political polarization and economic strain, our upcoming roundtable is for you.?

Our consultants will address the increasing burnout among DEI change agents and how to protect your well-being. You'll learn how to advocate for more recognition and support to drive meaningful change at your company.

Save your spot here and join us on Wednesday, Sept. 18 at 12 pm ET.