According to management consultancy McKinsey, 90% of Fortune 500 companies have established employee resource groups. These voluntary, employee-led groups, originally created to support underrepresented communities within organisations, have grown into vital components of corporate strategy. No longer just a support network, the groups now serve as catalysts for engagement, innovation and cultural transformation.
Employee resource groups first emerged in the US during the civil rights movements of the 1960s and 1970s, primarily to give a voice to employees from marginalised communities. Initially focused on race and ethnicity, they have since broadened their scope and now encompass a wide array of identities and interests, including gender, sexual orientation, disability, mental health, veteran status and even shared professional goals such as sustainability and technology.
‘They let employees bring themselves to work in the fullest sense’
Collaboration and celebration
In many multinational companies, employee resource groups not only address issues of diversity and inclusion but also facilitate cross-cultural understanding and collaboration, which are crucial in today’s interconnected world.
Credit bureau company PRA Group is a good example. It recently launched an Hola! group to provide a space where colleagues can engage in a community that celebrates and embraces Hispanic culture around the globe. ‘It gives us the opportunity to promote the values, advancement and achievements of our Hispanic and Latino employees,’ says Victor Andrade, senior vice president at PRA.
Companies report a higher rate of employee engagement and retention
The impact of these groups on business outcomes is significant and measurable. Companies with active groups report a higher rate of employee engagement and retention compared with those without. The groups have also evolved into a critical component of diversity, equity and inclusion (DEI) strategies across global enterprises.
Multinational pharmaceutical company AstraZeneca has over 50 employee resource group chapters in more than 15 countries. It describes them as ‘part of the fabric of our company’ and ‘fundamental to our inclusion and diversity strategy’. The groups cover a wide range of affinities, including cancer support, disabilities, early talent, gender and mental health, reflecting the diverse needs and interests of its global workforce.
Similarly, global tech company Westcon-Comstor’s groups focus on topics chosen by employees, such as equality, inclusion, health and wellbeing, and sustainability. The groups not only provide a platform for sharing stories and mentorship but also help shape policies that reflect the values of the workforce.
Luis Ariza Ruiz, a global account manager and member of Westcon-Comstor’s inclusion employee resource group, says: ‘We develop inspiring actions and activities that celebrate diversity, creating an inclusive environment that reflects the collective experiences.’
They ensure that employees feel seen, heard and valued
Meaningful impact
At Emergent BioSolutions, groups such as Black Originators, Leaders and Doers (Bold), Building Relationships and Advancing Veterans at Emergent (Brave), and Emerging Women have become integral to the company’s culture. They create opportunities for open dialogue on issues such as racial injustice and gender inequity, ensuring that employees feel seen, heard and valued.
‘Our employee resource groups are absolutely essential,’ says Aubrey Watkins, senior director of corporate development and Bold co-chair. ‘They offer an important place for employees to come together, find camaraderie and feel as if they’re bringing themselves to work in the fullest sense.’
At PRA, the recently launched Pride Alliance group aims to serve LGBTQ+ employees and their allies. Kim Carr, senior vice president and CTO at PRA, emphasises that such groups foster an inclusive workplace where all employees can ‘bring their whole selves to work every day’.
Food company Danone says it is actively advancing its inclusion efforts through ‘employee network groups’, with a particular focus on a women-supporting Wings initiative. Wings aims to provide women in the workplace with tools, skills and policies for navigating their careers effectively and enhancing their overall wellbeing. Initiatives include the development of menopause support.
Danone recently engaged with its employees to understand the topics they were most interested in exploring. Feedback highlighted a strong desire to hear more about financial literacy from women, experiences of working mothers, insights from senior female leaders and discussions on menopause.
‘Fostering an inclusive culture is a continuous investment and requires everyone to be on board’
Employee engagement
Employee resource groups have also been vital in enhancing employee engagement and retention. Multinational Philips, which has 12 groups across North America, credits them with ‘meaningful influence’ on company culture and contributing to its recognition as one of Canada’s best employers for diversity. Sonam Lalwani, head of diversity, inclusion and wellbeing at Philips North America, says: ‘Fostering a diverse and inclusive culture is a continuous investment and requires everyone to be on board.’
Managing such groups effectively can be challenging, especially for large organisations with multiple chapters across various locations. Technology can help bridge the gap. Platforms such as Chronus have introduced modules to streamline the management, engagement and measurement of these groups.
Chronus software allows companies to centralise their employee resource group operations to make it easier to track participation, schedule events and measure their impact on employee engagement and organisational culture.
The integration of technology is crucial in addressing employee disengagement
The integration of technology is particularly crucial in addressing the issue of employee disengagement, a problem that costs companies billions annually. According to Gallup, three out of four employees are disengaged at work, leading to high turnover and low productivity.
Chronus says its employee resource group module helps foster a more connected and engaged workforce, ensuring that the groups fulfil their potential as drivers of inclusivity and innovation. ‘Organisations only reach their greatest potential when their people do,’ says Chronus CEO David Satterwhite.
As organisations continue to prioritise DEI, the role of employee resource groups is likely to expand even further. They are not just a nice-to-have feature of the modern workplace but are essential to building an inclusive culture; they drive business impact and ensure that every employee feels valued and empowered. As more organisations recognise the transformative power of these groups, their influence will continue to grow, shaping the future of work in profound ways.
