Entrepreneur. Inclusive Marketer. Business Strategist. Certified Diversity Executive. VP, Business Strategy at The Diversity Movement.
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After George Floyd’s murder in 2020, many corporations scrambled to set up diversity committees and employee resource groups (ERGs). These groups were safe spaces for employees to discuss their concerns and provided necessary emotional support. Organizations also saw them as tangible proof of their commitment to social justice. But in their haste, many business leaders skipped a critical step: aligning the goals of their diversity committees and ERGs with the larger financial goals of the company, positioning these groups to have true business value.
Set measurable goals.
When many of these DEI groups were launched, in the early days of the pandemic, people were clamoring for ways to connect with each other. These groups created greater belonging in the workplace, but it’s not enough to make people feel better. For diversity committees and ERGs to maintain executive support, their members must take action. Diversity groups need to shift their focus to include business as well as social objectives.
Without measurable, business-oriented goals, many ERGs and diversity committees became no more than book clubs or social gatherings. Others had vague objectives or took on too many initiatives, which diluted any impact on company culture. In one recent study, only 53% of respondents defined their organizations' ERGs as active and effective, and just 37% said their ERGs had specific goals for which they were accountable.
For many senior leaders, diversity committees and ERGs are their primary reference points for their company’s diversity, equity and inclusion (DEI) initiatives. When these groups fail to contribute measurably to the business objectives of the organization, leaders then question whether DEI in general is worth the investment. That lack of senior-level support makes the job of a chief diversity officer (CDO) more difficult and puts subsequent culture-centric programs at risk.
If diversity committees and ERGs are structured effectively, with well-defined goals, these groups can play important roles in furthering business objectives, increasing innovation and creating a more inclusive and productive workplace.
Recognize the distinctions.
Diversity committees and ERGs are different but complementary entities, and it makes good business sense to support both:
Diversity committees (task forces or councils) provide a sounding board that company leaders can use to accelerate the impact of the company’s DEI initiatives. These committees, led by the CDO and championed by the CEO, are typically focused on reviewing and recommending changes to company policies and practices and advising on new ones. Members should be well-respected, influential individuals from all levels of the organization. If your organization has a fairly homogeneous workforce, your committee may lack insight into a broad range of perspectives, the barriers to DEI and how to address them. Advising leadership on ways to create a more inclusive culture—an essential step before attempting to increase your company’s employee diversity—should be among your committee’s first priorities.
Employee resource groups are voluntary, employee-led gatherings of individuals who share an affinity and their allies. The list of examples is wide-ranging and includes Black, Hispanic/Latino, Asian, women and LGBTQ+ networks; veterans; and working parents. ERGs provide participants with opportunities for peer support, community involvement, mentoring and professional development. They help increase employee engagement and grow diverse representation and organization leadership over time. Because ERGs often include employees with different functions and from a variety of divisions, members can often offer strategic solutions to common workplace issues. They can also help companies expand their share in a range of diverse market segments.
A tip for marketing leaders: Consider including your diversity committee and ERGs in your creative review process to align marketing and internal and external communication authenticity with your organization’s DEI promises.
Establish a clear charter, including mission, strategy and objectives.
Both diversity committees and ERGs need charters that articulate the mission of the group and define objectives linked to the business goals of the organization. Ask participants annually to set specific, attainable, time-bound goals that will generate measurable outcomes and add business value. Every year, pick one or two initiatives that will address current challenges at the company with an immediate impact. It’s also good to set one or two aspirational goals that will take longer to achieve. Outline the specific duties and responsibilities of group chairs and members, including expectations for reporting results.
For example, if an ERG has mentorship and professional development as part of its mission, measurable goals need to be attached to that initiative. How many people of color, women, or members of the LGBTQ+ community have moved into positions of leadership thanks to mentoring? The group’s efforts in professional development need to be connected to visible results that align with the company’s mission, values and bottom line.
Identify strong group leaders.
Diversity committees and ERGs should be chaired by individuals with strong leadership and people skills who also have a personal passion and commitment to the group’s mission. However, just because individuals have a passion for DEI doesn’t mean they know how to lead a diversity council or can align an ERG's mission with critical business goals. Their interest in serving must be supported and amplified by appropriate training and professional development. In particular, diversity advocates should understand how to gain buy-in across the organization, what data they should collect to prove results and how to identify and accomplish strategic goals. While a formal workshop, course or certification for diversity committee and ERG leaders is ideal, group members can also commit to educating themselves.
Take action now.
If your diversity committees or ERGs have been floating without focus or feeling stagnant—or maybe you have yet to launch these groups—take action now to gain the many benefits these groups deliver. Both can help your organization do a better job leading, managing and improving the measurable impact of your DEI initiatives. They are an essential force for integrating the values of DEI throughout your organization, developing and strengthening a culture of inclusivity, ensuring a diverse pipeline of talent and adjusting to the changing demographics of your market.
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