[Excerpt] Employee resource groups (ERGs) are being utilized by 90% of Fortune 500 companies in their quest to create diverse and inclusive environments that reflect a changing workforce and marketplace. ERGs began as inward-looking affinity groups designed as safe spaces for underrepresented groups of employees and a means to recruit and retain diverse employees. ERGs are now becoming more strategic parts of the organization where their goals are mapped directly to the business’ objectives (Figure 1 highlights the evolution of ERGs). As these groups mature, businesses are now looking for new ways to utilize ERGs power and their diverse workforce to drive positive business results. Figure 2 highlights where businesses believe ERGs can have the most business impact

Berkoff, Rachael

Lundgren, Andrew

English

[Excerpt] Employee resource groups (ERGs) are being utilized by 90% of Fortune 500 companies in their quest to create diverse and inclusive environments that reflect a changing workforce and marketplace. ERGs began as inward-looking affinity groups designed as safe spaces for underrepresented groups of employees and a means to recruit and retain diverse employees. ERGs are now becoming more strategic parts of the organization where their goals are mapped directly to the business’ objectives (Figure 1 highlights the evolution of ERGs). As these groups mature, businesses are now looking for new ways to utilize ERGs power and their diverse workforce to drive positive business results. Figure 2 highlights where businesses believe ERGs can have the most business impact.In_What_Ways_do_Employee_Business_Resource_Groups_Positively_Impact_the_Company_s_Business_Results.pdf: 1832 downloads, before Oct. 1, 2020

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In What Ways do Employee Business Resource Groups Positively Impact the Company's Business Results?

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11-2017 
In What Ways do Employee Business Resource Groups Positively 
Impact the Company's Business Results? 
Andrew Lundgren 
Cornell University 
Rachael Berkoff 
Cornell University 
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In What Ways do Employee Business Resource Groups Positively Impact the 
Company's Business Results? 
Abstract 
[Excerpt] Employee resource groups (ERGs) are being utilized by 90% of Fortune 500 companies in their 
quest to create diverse and inclusive environments that reflect a changing workforce and marketplace. 
ERGs began as inward-looking affinity groups designed as safe spaces for underrepresented groups of 
employees and a means to recruit and retain diverse employees. ERGs are now becoming more strategic 
parts of the organization where their goals are mapped directly to the business’ objectives (Figure 1 
highlights the evolution of ERGs). As these groups mature, businesses are now looking for new ways to 
utilize ERGs power and their diverse workforce to drive positive business results. Figure 2 highlights 
where businesses believe ERGs can have the most business impact. 
Keywords 
Human Resources, HR, EBRG, employee business resource groups, fortune 500, ERGs, workforce, affinity 
groups, diverse, business impact, recruitment, retention, mentorship, senior leadership, inclusion, 
governance 
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the company's business results? Retrieved [insert date] from Cornell University, ILR School site: 
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Andrew Lundgren & Rachael Berkoff  November 2017 
EXECUTIVE SUMMARY 
RESEARCH QUESTION 
In what ways do Employee Business Resource Groups positively impact the company's business results? 
INTRODUCTION 
Employee resource groups (ERGs) are being utilized by 90% of Fortune 500 companies in their quest to 
create diverse and inclusive environments that reflect a changing workforce and marketplace.1 ERGs 
began as inward-looking affinity groups designed as safe spaces for underrepresented groups of 
employees and a means to recruit and retain diverse employees. ERGs are now becoming more strategic 
parts of the organization where their goals are mapped directly to the business’ objectives (Figure 1 
highlights the evolution of ERGs).2 As these groups mature, businesses are now looking for new ways to 
utilize ERGs power and their diverse workforce to drive positive business results. Figure 2 highlights 
where businesses believe ERGs can have the most business impact. 
BUSINESS VALUE OF ERGs 
1. Product Development- ERGs contribute to the development of products that target customers from
their demographic groups.
 In 2016, CVS launched a first-of-its kind initiative with the Department of Veterans Affairs to
expand access to high quality and convenient care services for veterans in California. When
developing the pilot, CVS consulted a focus group with its VALOR colleague resource group (CRG)
members to inform them of the launch. The feedback was exceptional and helped to derive
service standards and program workflows that would best meet the needs of its veterans.3
2. Marketing to Customers- ERGs draw on the insights of employees with cultural ties to particular
markets to help marketing, customer relations and sales personnel connect with customers.
 GM challenged its ERGs to contribute to the bottom line by producing business plans that
include market outreach. The plan focused on building brand ambassadors and targeting
marketplace constituents to help increase vehicles sales. ERG members generated more than
950 vehicle referrals and influenced the purchase of nearly 500 vehicles, influencing $12.5
million in revenue.3
3. Recruitment and Retention- ERGs enable focused coaching, mentoring and sponsoring which
creates a higher degree of connection within the organization and results in lower turnover.
 Following a recent expansion, Cummins needed to recruit for positions in Africa. The company’s
African American Affinity Groups researched and analyzed demographics in Africa to determine
how to best secure local talent. They also worked with African employees and with HR to help
develop recruitment efforts in the various countries where Cummins has a presence.4
4. Professional Development- ERGs are a proving ground for emerging leaders, providing ample
opportunities to stretch beyond core competencies
 Comcast’s ERG Mentorship Program, started in 2012, enhances the professional development
initiatives of the ERGs by providing opportunities for one-on-one mentoring relationships with
senior leaders. The program’s goals are to provide mentees with direct access to successful and 
talented senior level mentors; and to inspire and foster high-potential employees.5 
5. Community Outreach- ERGs contribute to business operations by participating in community service 
work that enhances the company’s brand. 
 For Pride events throughout the United States, Macy’s Pride Network launches a full ad 
campaign, including branded T-shirts for all Macy’s employees. The campaign includes Pride 
kiosks, that access Macy’s online Pride registry for wedding and commitment ceremonies.4 
KEY CONCERNS 
Deloitte Case:  In July 2017, Deloitte made a decision to phase out ERGs, stating that ERGs have 
become a convenient excuse for a lack of progress and the overarching objective of these groups never 
materialized: that they would help “out-group” employees reach the top echelons of leadership. 
Deloitte points out that these networks divide groups of people and rather isolate them from other 
networks of people that could be key in determining their growth within the organization.  In its place, 
the firm will move to set up “Inclusion Councils” which will include a mix of people to tackle diversity 
issues and specifically aim to get a broader buy-in, specifically from white males.  Reactions to 
Deloitte’s decision have been mixed and it’s too early to know the long term impact.6 
More Research Needed: To date, there have been no randomized controlled trials (and very little 
academic research overall) tracking the impact of ERGs on business productivity, member advancement 
and professional development.  Most research has been conducted by consulting firms, and most is 
comprised of surveys that collect data and views at one point in time.1  
HOW TO MAXIMIZE ERG EFFECTIVENESS 
1. Ensure ERGs have formal governance, defined roles, reporting structures, and expected outcomes. 
2. ERGs must have measurable internal and external goals. 
3. ERG Cross Collaboration helps organizations look for synergies around recruiting, retention, 
talent development, knowledge transfer and other corporate priorities across different ERGs.1 
4. Utilize collaborative technologies to build visibility, share success stories, and promote 
integration in the larger enterprise.8 
5. ERG leadership training- Catalyst has initiated an Employee Resource Leadership Initiative which 
connects ERG leaders across companies and allows participants to hear from preeminent 
corporate ERG experts, participate in conferences and workshops and share strategies and 
solutions in a networking environment.7 
CONCLUSION 
Despite the recent questioning of employee resource groups and their effectiveness, well-managed 
ERGs can ignite inclusion and are critical to the success of diversity initiatives in the workplace. ERGs 
support employee engagement, provide leadership opportunities, foster and cultivate talent, and 
connect to areas of the organization in which business is conducted, enhancing the bottom line. By 
following the strategies to elevate ERG effectiveness, organizations will be able to utilize these groups to 
achieve valuable business outcomes and employees will be able to thrive in a healthy work 
environment. 
REFERENCES 
 
1. Bentley University, Center for Women and Business. Employee Resource Groups, A Curated Research 
Report. Fall 2016.  Retrieved from: 
https://www.bentley.edu/files/2017/03/17/Bentley%20CWB%20ERG%20Research%20Report%20Fall%2020
16.pdf. 
2. Derven, M. What’s Next for Employee Resource Groups? Association for Talent Development. January 22, 
2016.  Retrieved from: https://www.td.org/Publications/Blogs/Human-Capital-Blog/2016/01/Whats-Next-
for-Employee-Resource-Groups. 
3. Nelson, S. Best Practices on Effective Utilization of Employee Resource Groups. Diversity Inc. August 10, 
2017.  Retrieved from: http://www.diversityinc.com/news/best-practices-effective-utilization-employee-
resource-groups/. 
4. Jennifer Brown Consulting. Cisco. Employee Resource Groups that Drive Business. 2010. 
5. Fraser, L. 7 Corporations Maximizing Employee Resource Groups. Black Enterprise. November 10, 2016.  
Retrieved from: http://www.blackenterprise.com/be-lists/five-corporations-maximizing-employee-resource-
groups-part-2/. 
6. Wittenberg-Cox, Avivah. “Deloitte's Radical Attempt to Reframe Diversity.” Harvard Business Review, HBR, 
3 Aug. 2017, www.hbr.org/2017/08/deloittes-radical-attempt-to-reframe-diversity. 
7. “ERLI: Employee Resource Leadership Initiative.” Catalyst, Catalyst, 3 Nov. 2017, www.catalyst.org/erli-
employee-resource-leadership-initiative. 
8.  Mercer. ERGs Come of Age: The Evolution of Employee Resource Groups. January 2011. 
 
SUGGESTED ADDITIONAL READING 
 
Goode, Shelton, and Isaac Dixon. “Are Employee Resource Groups Good for Business? .” Society for Human 
Resource Management, SHRM, 25 Aug. 2016, www.shrm.org/hr-today/news/hr- magazine/0916/pages/are-
employee-resource-groups-good-for-business.aspx. 
Llopis, Glenn. “7 Ways to Enable Your Employee Resource Groups into a Powerful Advancement  Platform.” 
Forbes, Forbes Magazine, 18 June 2012, www.forbes.com/sites/glennllopis/2012/06/18/7-ways-to-enable-
your-employee-resource-groups-into-a-powerful-advancement-platform/#7f7b3e4c524f.  
 
 
 
APPENDIX 
FIGURE 1:  
 
 
 
FIGURE 2: 
 


In What Ways do Employee Business Resource Groups Positively Impact the Company\u27s Business Results?

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In What Ways do Employee Business Resource Groups Positively Impact the Company\u27s Business Results?

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