Wednesday, February 25, 2009

The Untapped Dollars in Diversity

Can companies really afford not to use every possible business resource to its full potential to help them survive and thrive? Well, I know of one resource that most companies significantly underleverage: their Employee Resource Groups.

ERGs (also called affinity or business resource groups) have long been sources of community for women, people of color, LGBT, differently-abled and other minority groups in companies. These groups have been great drivers of engagement for these employees; I've even heard employees describe ERGs as their strongest link to their companies
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Best-practice ERGs, from companies like IBM, Citi and Kodak, are both communities and powerful business resources that enhance the bottom line.
But, most companies haven't leveraged their ERGs for direct business growth or support like these best practice examples. It's time to start.

Structured as more of a business resource, ERGs can help not only develop their own market niches, but also support initiatives that have nothing to do with their own communities. For example, the African Americans group at a pharma company could lead a project team working on product development of a new drug. Or, the LGBT group at a media company could sponsor research on new online ways to reach customers.

These initiatives don't directly benefit these ERGs, but they do increase their visibility and inclusion, and perceived contribution to the business. They foster greater engagement between ERG members and allies, and help organizations see their value beyond headcount and diversity policies.


So, I see two actions that need to take place:

  1. Company leaders need to reimagine how ERGs can be a valuable business resource, and clearly communicate that message so that employees will feel "safe" spending their time with an ERG
  2. ERGs need to strengthen their muscles as business resources, not only sources of community, and help their membership deliver on this new part of their mission
Where else do you think are the untapped dollars in diversity?

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