Don’t Throw Out ERGs With DEI Bathwater

While executive teams continue to wrestle with their own and stakeholders’ perspectives of diversity, equity, and inclusion, it is inarguable that having productive, happy and healthy employees is critical to every organization.?

Employee Resource Groups (ERGs) - and the 20+ other names they now go by - were initially created in the 1960s at Xerox to give Black male employees a business-necessary voice into internal policy decisions and otherwise unavailable professional development support. These objectives remain in place today for all employee groups along with other provable reasons that these groups contribute to the success of all organizations:? more cost-effective targeted talent acquisition and retention, as well as increased overall workforce innovation and productivity.

For 60 years, ERGs continued to operate in stealth mode. Back in 2018 when I was asking various talent management and HR executives why these groups were largely ignored, the answers I received ranged from, “They just provide food, flags and fun,” to “Why would you bother?”?

Then, George Floyd. And Brianna Taylor, and Asian Hate, and, and, and …COVID isolation. Plus, ongoing reasons such as hybrid work, the proliferation of AI and intergenerational communication differences continue to challenge everyone ‘s ability to have a sense of belonging. The additional cognitive cycles used to manage this fear drain the resources that allow workers to focus, let alone think critically. As a result, engagement, creativity and teamwork continue to be challenging and add to the urgency for organizations to support ERGs.?

ERGs provide ongoing coaching and education for the entire organization to create a culture of inclusion and psychological safety so everyone can think and contribute optimally.

Today, over 50 million people worldwide participate in employee groups formed around various aspects of identity including gender, race, age, religious beliefs, age, hobbies and career goals.? The ERG market continues to expand with dozens of technology solutions, conferences and consultants.?

Yet, ERGs are being intertwined with the complexities of DEI politics and the organizational changes aimed at alleviating unwarranted fears.?

It's unrealistic to believe that the significant efforts, progress and advancement of DEI and ERGs will disappear simply because the words were erased from corporate reports and budget lines.

Starting in 2019, the ERG Leadership Alliance (ELA) has continued to develop efficient processes, standards and benchmarks to train, govern and sustain all the people involved in employee groups: group leaders, executive sponsors, oversight/DEI managers and allies. Each year, ELA forecasts issues and priorities in an ERG Trends Leadership Briefing. Each report includes a theme that summarizes the economic and political sentiment around employee groups at that time. In our 2024 report, we predicted that many organizations would retract their DEI and subsequent ERG initiatives, while others would double-down. Once again, our members provided accurate insider intelligence. That is exactly what happened.?

The year so far has brought a cascade of regressive business actions that cut budgets and eliminated jobs – many impacting the passionate, volunteer leaders and entire DEI departments tasked with managing and improving ERGs.?

Thankfully, not all organizations were so short-sighted.?

While some organizations were loudly and proudly dismantling prior DEI initiatives, we have worked with an equal number that are quietly doubling down on their ERG commitments. Regardless of the pressure from industry peers, politics or internal history with ERGs, these progressive organizations have continued to invest in and commit to expanding their ERGs - even risking loss of government funding, investor pushback and legal mandates. These organizations are still pushing forward their ERGs because they know these groups provide the ultimate business benefit: a much-needed human connection for all employees to work confidently.?

Employee groups give employees the confirmation that they matter as individuals which is the ultimate way to motivate and liberate human potential.

Even if DEI funding is cut, executive sponsorship discouraged, and the questionably compliant metrics pulled from corporate reports – ERGs, their efforts, and their impact in progressing diversity and inclusion in the workplace will not go away. In fact, it's more important than ever to track and elevate these initiatives, ensuring that their contributions continue to be seen and recognized.?

ELA’s global and growing community will not step back from our collective mission and efforts. We remain committed to equip and connect ERG champions around the world to share the most efficient and effective ways to run groups and provide collaborative support needed to make every type of employee group strong and sustainable.?

ERGs make inclusion happen in any organization that wants to thrive now and survive into the future.

Please join the ERG Leadership Alliance in our commitment to ensure every employee knows they matter and truly belong.