Employee resource groups (ERGs) have become a mainstay of the modern workplace, with an astonishing 90% of Fortune 500 companies in the United States (U.S.) having an ERG program in place [1]. As employee-led, voluntary communities, ERGs offer unique value by elevating employee voices, supporting leadership development, and driving innovation and collaboration across the organization. 

Recent shifts in U.S. federal policy related to diversity, equity, and inclusion (DEI) programs have cast a spotlight on the role and operation of ERGs within the workplace. While complex, these policy changes underscore the need for employers to proactively adapt their ERG strategies to help ensure compliance while also protecting the tremendous value that ERGs bring to the table.  

Below are three actions that employers can take to navigate the changing U.S. policy landscape and continue empowering their ERGs to thrive.

1. Centralize ERG governance and decision making

By centralizing governance and decision making, organizations can better monitor and oversee ERG activities, helping to ensure greater accountability and compliance. It is important that any centralization efforts include the voices of ERG leaders and stakeholders so as not to stifle innovation, creativity, or the strong sense of shared ownership that makes ERGs such valuable assets. Establishing a centralized ERG leadership council, for example, may be a great way to strike a balance between organizational risk management and local ERG needs. 

2. Reinforce that ERGs are voluntary and open to all employees

Organizations should evaluate and assess all ERG processes, policies, guidelines, and messaging to make sure they reinforce the voluntary and open nature of ERGs. While often built around a shared diversity identity or an appreciation thereof, such as LGBT+, Black, or neurodiversity, it is important to mitigate any perception that ERGs are open only to specific identity groups. One way organizations can strike this balance is by highlighting the educational aspect of ERGs, such as how they raise awareness through learning, networking, and professional development opportunities available to all.

3. Highlight the value of ERGs beyond inclusion

Of course ERGs have tremendous value when it comes to supporting workplace inclusion, but in light of recent shifts in U.S. federal policy targeting DEI, it’s important to understand and emphasize the many other ways that ERGs add value. For example, ERGs can provide an opportunity for participants to develop critical professional and leadership skills that they can use to fuel their career growth and add value to the business. In addition, ERGs can play an important role in helping organizations attract and retain top talent, enable innovation and creativity, and help to improve employee engagement. 

As the impact of recent U.S. federal policy changes related to DEI continues to unfold, organizations should be proactive in ensuring their ERGs do not present undue risk to the business. By centralizing governance, reinforcing the voluntary and open nature of ERGs, and highlighting the breadth of value ERGs bring to the table, organizations can go a long way in managing risk, supporting their employees, and navigating change.

[1] Georgene Huang, “90% of Fortune 500 companies already have a solution to gender equality but aren’t utilizing it,” Forbes, November 13, 2017.