How People Create Authentic Change. Unlock the transformative potential of Employee Resource Groups (ERGs) with Farzana Nayani’s groundbreaking insights. This compelling guide reveals how ERGs can be a catalyst for empowering underrepresented employees and driving authentic change within organizations.

Dive deeper into the world of ERGs and discover how to leverage their power for your organization’s success. Continue reading to explore the innovative strategies that can elevate your company’s diversity and inclusion efforts.

Genres

Nonfiction, Business, Leadership, Diversity, Inclusion, Human Resources, Organizational Development, Social Change, Corporate Culture, Management

“The Power of Employee Resource Groups” by Farzana Nayani is a comprehensive guide on building and managing ERGs. It provides foundational tools and outlines the 5 Ps—purpose, people, processes, planning, and priorities—necessary for successful operation. The book emphasizes the role of ERGs in advancing careers for professionals of color and increasing diverse leadership representation. It also highlights how ERGs have evolved from affirmative action policies to become significant in impacting diversity, equity, and inclusion (DEI) efforts within organizations and society.

Review

Farzana Nayani’s book is an essential read for anyone involved in DEI initiatives. It offers a people-centric approach and is socially conscious, addressing the current needs of employees and leaders. The book is praised for its practical guidance and inspiring examples, making it a valuable resource for creating a more inclusive work environment and fostering authentic change.

Recommendation

At leading organizations such as Uber and LinkedIn, ERGs have proved themselves important pillars in driving employee engagement and organizational performance alike. In this helpful guide to operating ERGs that drive business results, diversity, equity and inclusion (DEI) consultant Farzana Nayani bridges theory with practical application. She offers helpful strategies and frameworks that highlight how ERGs can foster closer bonds between employees and their organizations, advance DEI goals, and help guide leaders through DEI-related crises and opportunities.

Take-Aways

• Employee resource groups (ERGs) support employees and contribute to organizational performance.
• ERGs build relationships among employees and with suppliers.
• ERGs must align with and contribute to organizational objectives.
• Take a structured approach to establishing ERGs.
• Allow anyone to join an ERG, regardless of whether they share the group’s specific identity.
• Encourage the company’s leadership, employees and the public to engage actively.
• Create operating principles for the ERG that address its chief elements.
• Recruit, reward and support leaders who can balance their ERG efforts with their primary roles.
• Leadership must address equity and inclusion purposefully rather than performatively.

Summary

Employee resource groups (ERGs) support employees and contribute to organizational performance.

By providing a space for identity-based community building and informing companies about group-specific needs, issues and opportunities, ERGs contribute to an organization’s broader commitment to diversity, inclusion, equity and belonging. Business Resource Groups (BRGs) take this a step further, aligning identity with business roles – for example, a group of women engineers. Both ERGs and BRGs focus on business goals, but organizations often define each group’s membership and purpose differently.

“Organizations at all levels recognize that productivity cannot be attained if our people are not OK. And many of us are not OK.”

ERGs emerged in the 1970s at companies like Xerox to address workplace discrimination. These groups, also known as employee networks or diversity councils, represent a range of identities, including gender, race, sexual orientation, and more. They focus on engaging employees and organizing DEI-related initiatives and must continually prove their value to maintain support and funding from organizational leadership.

ERGs build relationships among employees and with suppliers.

ERGs offer belonging and support for members of identity groups, fostering community-building and camaraderie within organizations and with outside stakeholders. Witnessing traumatic events that affect your identity group can spark feelings of loss, sadness, fear, anger and resentment. ERGs help employees process these emotions and advocate for systemic change, offering a space for collective healing and challenging workplace norms to foster psychological safety and genuine inclusion.

“Employee resource groups serve as a place for employees to find solace in being able to process a common experience – such as an alarming news event – in the safety of a collective that is composed of others of the same identity grouping.”

ERGs also support supplier diversity. ERGs can foster connections with diverse suppliers and support their development through educational events and certification workshops. This approach expands the supplier pipeline, simultaneously offering value to the community and the sponsoring company. It allows companies to balance profitability with employee engagement and support of social causes.

ERGs must align with and contribute to organizational objectives.

Beyond transforming business practices in areas such as career development, community engagement and marketplace reach, ERGs can enhance a company’s recruitment practices, retention numbers and organizational culture. Best practices include ensuring ERGs’ roles and programs support the company, facilitating community outreach without intruding into specific departmental functions, and being mindful of all employees’ diverse schedules and locations to ensure inclusive participation. To address these challenges, ERGs should consider policies like compensating hourly workers for attending meetings outside regular business hours, rotating meeting times for global participation, and consistently welcoming new members to foster a sense of belonging and engagement across all locations.

“This is the power of employee resource groups – that they are the collective voice for people who may not always be seen or heard as individuals.”

ERGs can also nurture diverse leadership and career advancement, serving as platforms for innovation and cross-pollinating ideas within organizations. They provide opportunities for diverse employees to develop skills, gain visibility with senior leaders and contribute to organizational goals while empowering them to address important societal and policy issues. ERGs can also be pivotal in initiating transformational change within organizations. They offer platforms for creativity, modeling a world where all employees can thrive as they help their organizations succeed.

Take a structured approach to establishing ERGs.

Assess your company’s readiness for DEI initiatives and ERG support using Seramount’s “Six Stages of Organizational D&I Assessment” model. Then, to successfully and sustainably establish an ERG, consider these seven steps:

1. Define the ERG’s objective.
2. Generate interest by identifying five to seven founding members, including allies.
3. Create the ERG’s charter.
4. Evaluate the disposition of stakeholders.
5. Set up governance, which includes reporting lines, advisory structures, and a system for feedback and approvals.
6. Establish operating guidelines for the ERG.
7. Tackle crucial issues through ongoing dialogue and thoughtful decision-making.

As you plan an ERG, focus on its purpose and the target audience, including potential primary members. The ERG’s charter, a critical founding document, should clearly outline its membership guidelines, purpose and operational principles.

Allow anyone to join an ERG, regardless of whether they share the group’s specific identity.

Though you must ensure an ERG primarily supports the individuals who share the marginalized identity around which the group centers, these groups should welcome everyone within the company. By opening ERGs to all employees, you can tap into a significant opportunity to bolster DEI and ERG efforts.

Recognize where individuals stand and their familiarity with DEI initiatives. Engaged and responsive “backers” actively champion DEI. These individuals can mobilize those less likely to get directly involved, contributing resources, guidance and crucial feedback. “Potential supporters” require education, awareness-building and coaching. “Obstructionists” resist change and may hinder DEI progress; understand their reasons to address their concerns and reduce harm from their non-participation. Finally, “latent allies” support DEI but are less responsive, often due to uncertainty or fear of making mistakes; guide them in participating.

“To succeed in the long run, DEI work must reflect the reality of the entire body of an organization’s members and incorporate their collective points of view. The process itself must reflect the goal of inclusion.”

DEI backers are deeply involved in and aware of issues of significance to the group. Prevent burnout by ensuring the work does not fall solely on them. Successful DEI initiatives require widespread participation. To embody inclusivity, they must reflect the diverse perspectives within your organization.

Encourage the company’s leadership, employees and the public to engage actively.

To succeed, ERGs need their organization’s leaders, employees and members of the public to participate in DEI efforts. If only one of these groups participates, nothing happens. The active participation of two groups allows some movement, but significant progress only comes when all three engage. Without this, DEI efforts remain isolated and ineffective. Assess current levels of involvement within your organization and without. Do employee networks unite around common causes? Does the public demand transparency and accountability? Does leadership participate proactively in DEI or merely react to urgent situations?

“The profound impact of employee resource groups goes beyond perceiving them simply as a gathering of employees from the same identity group.”

Organizations with integrated and supported ERGs benefit from continuous feedback and communication, leadership development, and innovative ideas. ERGs act as focus groups and promotion pathways for outstanding leaders. They serve as community ambassadors and connect with diverse suppliers. This multifaceted ERG involvement can lead to widespread organizational change and improved outcomes. Thus, a company’s success or failure can link closely to employee engagement and good management of ERGs.

Create operating principles for the ERG that address its chief elements.

The following framework defines the core components involved in operating an ERG. Consider each of these as you develop the group’s charter:

1. “Purpose” – Define the ERG’s mission and vision. Pinpoint the primary reasons for the ERG’s existence. Clearly articulate these reasons in a vision or mission statement to maintain focus and direction. Share this with ERG leaders and members.
2. “People” – People form the ERG’s backbone, encompassing members, leaders, executive sponsors, a diversity council and other stakeholders. Recognizing and defining these roles is crucial. List the primary stakeholders and plan to engage each group.
3. “Processes” – Implement processes for smooth ERG operation. Establish a regular meeting schedule and define the reporting structure for updates and decision approvals.
4. “Planning” – With people and processes in place, plan the year’s activities, including monthly meetings and communications. Align activities with organizational culture goals, focusing on inclusion and equity for marginalized groups.
5. “Priorities” – Strategize annual activities, aligning them with significant dates and the company calendar. For instance, consider timing events like guest speakers to coincide with relevant cultural or heritage months.

Actively acknowledge the achievements of ERGs to retain leaders and members, boost morale, and highlight the ERG’s effects on the company. Top leadership should express appreciation through messages, invitations to significant events where ERG voices matter, or mentions in larger company or public stakeholder meetings.

Recruit, reward and support leaders who can balance their ERG efforts with their primary roles.

ERG involvement can sometimes strain manager-employee relationships. Managers may perceive ERG members as overly focused on ERG activities, while ERG leaders might feel unsupported by their managers. Leaders must perform ERG activities without compromising primary work projects. Consider integrating ERG efforts into performance reviews or making ERG duties a formal part of the job. Ensure those who participate in an ERG, especially in leadership roles, receive recognition and reward. While approaches vary, involvement in ERGs can enhance visibility, leading to more opportunities and career advancement. LinkedIn, for instance, pays its ERG co-chairs $10,000 annually and offers a paid week off to reduce their stress and burnout.

“The relationships you build within your own employee resource group and with other ERGs are pivotal to the sustainability and success of your ERG.”

When setting up an ERG, select the right leadership, including individuals from the group’s identity or allies, and align their tone with HR and company approaches to diversity, equity and inclusion. Ensure the ERG has structural support, including an executive sponsor who can champion and connect the group while managing organizational dynamics, funding and impact. Establish regular meetings between the sponsor and ERG chairs. Limit leadership terms to prevent burnout and to facilitate new leader transitions. Engage members widely without targeting specific individuals based on personal characteristics, ensuring the initial invitation reaches the entire organization.

Leadership must address equity and inclusion purposefully rather than performatively.

Effective practices through an inclusive lens can increase sales, productivity and customer service. To succeed, DEI efforts need organic integration into all facets of the company. One-off training sessions, lacking in purpose or strategy, fail to address systemic issues.

“What is needed is to make a clear case for the impact that DEI and ERGs have within an organization through a direct return on investment of effort, time, resources and leadership attention.”

Organizations should seek proactive resolution of issues with a focus on prevention, supported by leadership’s clear guidance and commitment to an inclusive environment. ERGs can play a vital role in informing leadership about pressing issues, helping to guide effective responses with urgency. In response to movements like Black Lives Matter and Stop Asian Hate, for example, ERGs have shaped companies’ responses and actions, providing invaluable insight.

ERGs can also guide organizations during times of internal turmoil. Uber, for example, responded to sexual harassment by initiating “listening sessions” to gather employee feedback. Women’s and Black employees’ ERGs at Uber played a pivotal role, providing candid feedback on issues like marginalization and poor treatment of some employees. This input was crucial in guiding the company toward more effective leadership and improving its public standing. As powerful influencers within the organization, ERGs helped generate innovative solutions and turning points for the company.

About the Author

Farzana Nayani coaches and speaks on diversity, equity and inclusion, with a focus on intercultural communication and employee engagement. Her expertise in advising employee resource groups has won her prominent engagements across North America, including at the White House.

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