Employee Resource Groups: Do They Help or Hurt?
In conversations about gender diversity, executives often bring up their women’s leadership group. It’s the first step many companies take when they decide to make gender representation a priority. Employee resource groups (ERGs) can have a positive impact on building an inclusive culture, but if done in a silo or without measurable goals, ERGs can undermine diversity goals.
The Problem with ERGs
ERGs, also called affinity or special interest groups, are a community of people that share similar backgrounds or interests. ERGs for women, LGBTQ+, and BIPOC communities are common at many progressive companies. Typically, the intent of these groups is to build community and support for underrepresented groups.
However, some company leaders view ERGs as the solution to diversity problems, and that’s where the controversy with ERGs begins. If you aspire to build an environment where diverse teams thrive, an ERG is not the solution. An ERG is a tactic that supports a bigger strategy to create an inclusive culture.
Companies like Deloitte have publicly disbanded ERGs citing a lack of impact and increased feelings of exclusion. ERGs, when viewed as “the solution,” can leave companies feeling frustrated because they aren’t moving the needle on important goals like shifting the mix of the leadership team or retaining top talent.
Reframing the ERG
If you have ERGs in your company, don’t worry – this is not a call to stand down. It is a call to reframe. Here are some things to consider to make sure your ERGs are part of the solution and not part of the problem.
Don’t just rely on grassroots effort: ERGs are often grassroots in nature, founded and led by employees of underrepresented groups. The effort is side-of-desk and can even distract from the employee’s core responsibilities impacting their performance and promotion opportunities. Companies like HubSpot have demonstrated their support for ERGs by hiring program managers to support ERG programming. If you don’t want to prioritize a full-time role, consider providing a budget or offering support for logistics and coordination.
Make it measurable: Too often, ERGs lack measurable objectives. Without clear objectives, the programming tends to skew toward community building, professional development, and social events – which are all good things. The problem arises when leaders or participants are expecting the group to solve systemic issues in the culture or practices of the company. Establishing measurable goals will clarify expectations and also help ERG leaders demonstrate the value of their efforts.
Connect to a larger strategy: ERGs have a place in meeting diversity objectives but are only a part of the equation. Suppose your goal is to increase the number of women on your leadership team? Achieving this goal will likely require actions spanning the employee lifecycle from recruiting and hiring to performance management and development. These initiatives require investment and collaboration across areas of the company, so it’s critical that they are connected to the company’s strategic goals.
ERGs are an important tool to build community and support structures for underrepresented groups. When properly funded and connected to a broader diversity strategy, they can also accelerate goals to build an inclusive culture.
