After moving to the United States from South Korea at the age of six, Jenny Jang encountered various challenges in navigating her schooling and early career endeavors.
“In every environment I was in, I felt like a minority,” Jang reflected. “Upon arriving in the States, I lacked a roadmap and couldn’t turn to my parents for guidance, so it was crucial for me to find mentors elsewhere.”
Currently residing in Atlanta and employed by an international elevator company, Jang spearheaded the creation of business resource groups across North America. These gatherings provided a platform for employees to connect and find support based on shared identities or themes.
The initial group, designed for female employees, accumulated 500 members within three years. Jang introduced a facilitator to guide discussions on juggling family responsibilities alongside a career in a male-dominated field. Following that, a group emerged for veterans and those supporting military families. “These gatherings became safe havens where employees could candidly share experiences,” she stated.
Employee resource groups (ERGs), which are voluntary and approved by employers to promote diversity and inclusion, originated in the 1970s in response to racial, gender, and sexual orientation tensions within corporate America. Over time, they have evolved to encompass other affiliations and experiences including caregiving, mental health challenges, neurodiversity, and generational divides.
Some critics argue that such groups can create unfair advantages, and negatively impact staff morale by segregating colleagues based on personal characteristics or beliefs. In response to criticism, some companies have adjusted the purpose and scope of their employee groups.
Adding to the uncertainty around ERGs’ future is an executive order signed by President Donald Trump aimed at dismantling diversity, equity, and inclusion programs within the federal government and beyond. Below are insights into initiating, participating in, or evaluating these groups within your organization.
Is participation in an employee resource group lawful?
In March, the Equal Employment Opportunities Commission released guidance stating that limiting ERG membership based on characteristics covered by anti-discrimination laws, such as gender or race, could be considered unlawful segregation. Employers should ensure inclusivity by opening these groups to all employees. “It’s important to guarantee that these groups don’t provide tangible benefits to certain employees over others,” noted Kevin England, CEO of Infinito Associates, a consultancy aiding organizations in setting up ERGs.
If an ERG offers mentorship or opportunities exclusively to individuals of a legally protected class, “you need to make those opportunities accessible to everyone,” advised David Glasgow, executive director at the Meltzer Center for Diversity, Inclusion, and Belonging at NYU School of Law. Glasgow discouraged creating separate mailing lists for members and allies, adding, “It raises the issue of what you’re excluding people from.”
According to Dan Lennington, Deputy Counsel at the Wisconsin Institute for Law & Liberty, a conservative public interest law firm, they’ve received numerous complaints from employees feeling excluded from workplace ERGs. Opening up these groups to all employees doesn’t always resolve such concerns. “The main question is if employees are being treated differently based on race,” Lennington emphasized, “or if their race, gender, or sexual identity is causing discomfort.”
What advantages do employee resource groups offer?
Advocates of ERGs highlight multiple benefits for both employees and management. For participants, these groups offer community, opportunities to develop leadership skills, and a channel for expressing their perspectives to management. Companies, on their part, view affinity groups as tools for fostering diverse recruitment and retention.
“Employee engagement tends to boost retention and effort,” stated Helena Pagano, Chief People and Culture Officer at Sun Life, an insurance and financial services firm. “Fostering engagement involves ensuring that employees feel their voices are heard, providing a platform for expressing opinions and crafting meaningful policies and outcomes.”
England recalls his time at a bank call center, where he assumed leadership in an LGBTQIA+ resource group. “Initially, I was terrified of public speaking, and the role necessitated frequent engagement,” he recounted. “Participating allowed me to hone skills unrelated to my primary job.”
About a decade ago, Anna Ettin co-founded Bank of America’s intergenerational employee network to bridge generational gaps between millennials and baby boomers. As co-founder of Tapestry Partner Solutions, a consultancy specializing in intergenerational dynamics and skills development, she’s extending similar efforts to Generation Z. “They’ve distinct perspectives in the workplace, with unique needs and expectations,” Ettin noted. “We’re helping companies retain talented staff and appeal to Gen Z.”
For those interested in starting an ERG in their workspace, experts recommend identifying a senior leader to sponsor the initiative. Ettin recounts how, two decades ago in a call center, she mobilized 20 engaged women to address the leadership pipeline gap for women by organizing events focused on interviewing skills, resume writing, and insights from senior female leaders.
England shares that groups generally start informally when 10 to 20 people meet during happy hours or lunches. “You’ll gain momentum, and this initial group could evolve from 20 to 100 members,” he mentioned. The next step involves briefing leaders about the informal employee network and its potential organizational contributions.
New ERGs might require company funding for events, meals, or conference travel. Initiating groups should be prepared to justify budget requests by showcasing their organizational impact, such as on employee retention. Establishing a new ERG is easier if an organization already hosts one, due to available references on previous workings and support. Otherwise, starting one and expanding from that point remains viable. “There’s no perfect recipe,” Jang mentioned. “Start small.”
As organizations adjust to various federal directives, choices about the future of ERGs are pending. Some have welcomed inclusivity and others have dismissed their groups, erasing years of progress, according to Ettin. “Underrepresented communities continue needing programs, advocacy, and support as they have over the decades,” Ettin stressed.