Strategic Trends in Employee Resource Groups

CORPORATE LEADERSHIP COUNCIL
FACT BRIEF
Strategic Trends in Employee Resource Groups
September 2001
Research Methodology
Report Missions and Imperatives
Background Information
Executive Summary
Research Findings
•
What are employee resource groups’ (ERG) relationship to diversity?
•
How are ERGs managed and structured?
•
What are critical success factors for ERGs?
This project was researched and written to fulfill the specific research request of a
single member of the Corporate Leadership Council and as a result may not satisfy the
information needs of other members. In its short answer research, the Corporate
Leadership Council refrains from endorsing or recommending a particular product,
service or program in any respect. Sources are contacted at random within the
parameters set by the requesting member, and the resulting sample is rarely of
statistically significant size. That said, it is the goal of the Corporate Leadership
Council to provide a balanced review of the study topic within the parameters of this
project. The Corporate Leadership Council encourages members who have additional
questions about this topic to assign custom research projects of their own design.
Catalog No.: CLC18DC5D
 2001 Corporate Executive Board
CORPORATE LEADERSHIP COUNCIL
CORPORATE EXECUTIVE BOARD
__________________________________________________________________________________________________
2000 Pennsylvania Avenue, N.W. Washington, DC 20006 Telephone: 202-777-5000 Fax: 202-777-5827
FACT BRIEF
Strategic Trends in Employee Resource Groups
September 2001
TABLE OF CONTENTS
RESEARCH METHODOLOGY
2
BACKGROUND INFORMATION
2
REPORT MISSIONS AND IMPERATIVES
2
OVERVIEW
3
RESEARCH FINDINGS
5
Background/Relationship to Diversity
Business Imperative
Strategic Business Use
Constituents
History
5
5
6
6
Program Management and Structure
Formation
Funding
Executive Sponsors
Membership
Activities
Outside Partnerships
7
7
8
8
9
9
Critical Success Factors
Metrics
Accomplishments
10
10
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
PAGE 2
RESEARCH METHODOLOGY
The Corporate Leadership Council interviewed individuals at five corporations. These individuals discussed the
business purpose of employee resource groups within their organizations. In addition, Corporate Leadership
Council staff reviewed secondary materials and sources concerning this topic.
BACKGROUND INFORMATION
Number of Employees
Company A
Company B
Company C
Company D
Company E
More than 100,000
60,000 – 100,000
7,500 – 20,000
Revenues
More than $20 billion
$10 billion - $20 billion
Industry
Manufacturing
Telecommunications
Information Technology
Financial Services
Also profiled are Microsoft and FleetBoston Financial where appropriate.
REPORT MISSIONS AND IMPERATIVES
Background/Relationship
To Diversity
1.
2.
3.
4.
6.
7.
8.
9.
Critical Success Factors
Does the company have employee groups/associations? If so, what term is used for them? Is there a business imperative to
support these groups?
How many groups does the company have and how long have they been in existence? How were the groups started? Is there
a specific basis for the groups (e.g., race, gender, religion, interests, etc.)? If so, is there a group specifically for white men?
Do these employee groups contribute to the company’s diversity initiatives? If so, how? If not, do they contribute to the
overall success of the company? How?
Is the HR group viewed as a strategic business partner? If so, does that view affect diversity goal setting and its importance
to the strategic agenda of the business?
Background/Relationship
To Diversity
5.
Program Management & Structure
Program Management & Structure
Critical Success Factors
Who decides the vision, purpose and goals for these employee groups? What is the outlined goal or purpose? To whom do
the groups report? Do the groups have executive sponsors? If so, what are their roles?
When do employee groups meet and what are their regular activities? Are their guidelines with respect to use of company
facilities, use of equipment, etc.? Does the company fund the groups? If so, what are the criteria for funding?
What, if any, policies or guidelines does the company have for group formation? Has the organization ever denied funding
for a group? If so, why?
Is group membership restricted in any way? Can employees belong to more than one group? Is group membership public
information?
What is the rationale for participation in employee resource groups (i.e., networking within the organization, developing a
sense of affiliation, development opportunities, agenda setting, etc.)?
Background/Relationship
To Diversity
Program Management & Structure
Critical Success Factors
10. Does senior management view employee networks/resource groups as a fundamental to business success? If so, how is this
manifested (e.g., CEO endorsement, specific measures for accountability, sponsorship by senior executives, etc.)?
11. Does senior management require annual reports from these groups detailing goals and accomplishments? If not, is there
another way the groups’ successes are measured (less turnover, higher retention, more new hires, higher productivity,
increased employee morale, etc.)?
12. How do employees within the groups, non-group member employees and top executives perceive the groups?
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
PAGE 3
OVERVIEW
Background/Relationship
To Diversity
“At Microsoft
Corporation, we
consider our
employees to be our
greatest asset. We
believe that our
continued success is
dependent on the
diverse skills,
experiences, and
backgrounds that
our employees bring
to the table.”
-Microsoft website
(www.microsoft.com/diversity)
Program Management & Structure
Critical Success Factors
Effectively leveraging diverse human capital will play a large role
in companies’ future competitiveness, as workforce diversity has
been shown to help organizations reach new markets and develop
heightened intellectual capital.1 Moreover, companies
increasingly must not only recruit and retain a diverse workforce, but also must support
the means through which diverse employees can advance within the corporate
structure. This brief examines the role of employee resource groups (ERG) within
profiled companies.
Business
Imperative
ERGs have become a critical diversity strategy for companies seeking to increase their
position among minority customers and candidates. Companies find that these groups
contribute enormously to the engagement and retention of traditionally underrepresented employee populations through mentoring, networking and onboarding and
potentially provide competitive advantage in securing talent, expanding customer
demographics and increasing companies’ wealth in human capital.
Profiled companies’ commitment and embrace of diversity within the workplace is
manifested through several companies’ inclusion in lists such as Fortune’s 50 Best
Companies for Minorities and Working Woman’s 25 Top Companies for Executive
Women.
Profitability
Correlation
Research indicates a correlation between diversity in the workplace and corporate
profitability: 2
•
Shareholder Returns—One study of the Standard & Poor’s 500 stock index reveals that companies with
the highest number of women and minority board members (at least four) show 21 percent better
shareholder returns on average than companies with no such board representation.
•
Stronger Management Teams—An American Management Association study of 1,087 firms found that
companies with diverse management teams outperformed those conforming to traditional management
representation.
•
Improved HR Processes—Employee resource groups aid HR executives in obtaining performance
feedback, training and developing employees and retaining workers.
•
Diverse Customer Base—3M utilizes affinity groups as a tool for product
development with the idea that these groups help the company reach a wide
array of consumers.
•
Community Involvement—At AT&T, affinity groups link the company to
their communities through mentoring programs, scholarships and adopt-a-school
initiatives.
1
Patricia Digh, “Getting People in the Pool: Diversity Recruitment that Works,” HRMagazine (1 October 1999).
Amy J. Hillman, “Diversity and the Bottom Line,” Journal of Commerce (September 1998).
(Obtained through Dow Jones Interactive). Author Unknown, “No More Excuses; Management Survey: The Most Successful Companies Are Those That Employ a
Diverse Work Force,” The Baltimore Sun (February 1999). (Obtained through Dow Jones Interactive). Author Unknown, “What is the ‘Business Case’ for
Diversity,” www.shrm.org (March 2001). Author Unknown, “Nurturing Diversity Through Employee Networks,” www.shrm.org (April 2000).
2
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
PAGE 4
OVERVIEW (continued)
Background/Relationship
To Diversity
Program Management & Structure
Critical Success Factors
All profiled companies report similar guidelines regarding group formation and functionality.
Typically, ERGs are autonomous organizations with a self-appointed leadership structure
(e.g., diversity councils or board of directors) that decide the vision, purpose, goals and
activities of the ERG. Profiled companies require only that an ERG’s purpose and mission
statement is consistent with and supportive of the companies’ diversity and overall business mission.
Formation &
Functionality
Research suggests that before implementing employee resource groups, firms set clear guidelines regarding group
membership and activities.3 Experts also recommend firms follow a series of steps prior to implementation to ensure
company-wide support for the employee resource groups.4
PROFILED COMPANIES
Collect information from group organizers
-Eligibility requirements for interested employees
-Funding
-Group mission statement
ERGs within profiled companies receive
funding from various sources including
member dues, fundraising, business unit
budgets, diversity office or other grants
Garner support
-Garner support from senior management for the
program
-Include HR in the process so staff can receive input
from these groups and monitor their progress
-Provide a forum for employees who may not be able
or willing to participate in these groups so they do not
develop resentment toward the initiative
Several groups informally partner with
executives within the organization who
serve as a sponsor or “champion,” but such
relationships typically are not mandatory
and are left to the groups’ participants to
foster.
Plan Group Structure
-Give each affinity group specific roles in important
aspects of the diversity improvement process
-Balance attention and resources evenly amongst all
groups to avoid the appearance of favoritism
Background/Relationship
To Diversity
Profiled companies note that any employee
may participate in ERG activities and that
membership is open to current employees
Program Management & Structure
Critical Success Factors
Profiled institutions indicate that ERGs are an integral part of a larger diversity strategy and
senior management shares this sentiment. That said, organizations may experience mixed
results due to the existence of ERGs. The relative autonomy and “hands off” oversight
typically enjoyed by ERGs may result in an incongruent level of knowledge regarding the
actual progress and/or contributions made to the company by these groups, while the existence of ERGs has
provided profiled institutions with better relationships with minority employees.
Overall Diversity
Strategy
3
3
4
Phaedra Brotherton, “Employee Networks Help Advance Diversity Efforts,” www.shrm.org (April 2001).
Lawrence M. Baytos, “Diversity: Task Forces and Councils Foster Diversity Success,” www.shrm.org (April 2001).
Ibid.
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
PAGE 5
RESEARCH FINDINGS
Background/Relationship
To Diversity
"While many
think that money
is what keeps
employees in a
company, studies
have shown that
having a truly
supportive
workplace
environment is
as important as
pay equity. It’s
also about being
respected and
being given the
opportunity to
achieve."
-Mary Wills, Alliance
of Black Lucent
Employees
Program Management & Structure
Critical Success Factors
ERGs have become a critical diversity strategy for companies
seeking to increase their position among minority customers and
candidates. Companies find that these groups contribute
enormously to the engagement and retention of traditionally underrepresented employee populations and potentially provide competitive advantage in
securing talent, expanding customer demographics and increasing companies’ wealth in
human capital.
Business
Imperative
ERGs are typically the result of a grassroots or bottom-up employee initiative; employees
form groups centered around common interests typically based upon race, gender, sexual
orientation or other defining criteria. For example, affinity groups provide professional
growth for participants, education and awareness for employees by:
Assisting with community outreach initiatives
Identifying and recruiting exceptional minority candidates
Sponsoring career fairs
Additionally these groups offer informal mentoring opportunities and support groups of
employees who might not have the opportunity to receive mentoring or interact with
more senior colleagues or peers. ERGs are attributed to the increased importance
companies are placing on diversity initiatives.
ERGs serve two primary purposes among profiled companies.
One is to address diversity concerns within the business by
individual employee demographic groups in areas such as
networking, education or community outreach. A second is to aid companies’ expansion
into traditionally under-represented communities in ways such as marketing or recruiting
as companies increasingly seek ERG guidance and input in sales, marketing and
advertising campaigns.
Primary Purpose
ERG Contribution
Strategic
Business Use
Product Development
Cultural Resource
Diversity Initiatives
Employee
Development
Public Relations
and Community
Affairs
Employee/
Company Relations
Work/Life Balance
The following table outlines the various consequences and attributes of employee resource
groups.
TABLE I: STRATEGIC BUSINESS USES OF ERGS
Acting as focus groups, employee networks assist in creating products that appeal to a broader market
Provide a general knowledge and awareness for employees; panels meet to discuss cultural nuances in
the workplace
Contribute to business success by attracting clients and new employees from diverse backgrounds,
creating a “good work” environment for all employees and helping the company deliver on its
commitment to diversity
Provide an opportunity for employees to stretch beyond traditional job tasks and develop leadership
and management skills
Provide legislative input and opinions about how corporate activities may affect the community’s
opinion and civil rights regulations. Employee network members assist with interviews and public
relations
Help maintain open communication lines between employees and the company; groups provide
information concerning general diversity activities to management to assuage their concerns
Improve employee retention rates and productivity by creating a better work atmosphere
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
Background/Relationship
To Diversity
PAGE 6
Program Management & Structure
Critical Success Factors
The table below indicates the various constituent groups represented at profiled companies and
at Microsoft Corporation.
Constituents
Company A
AfricanAmerican
AsianAmerican
Gay, Lesbian
Hispanic
Women
Disability
Native
American
Filipino
Men
TABLE II: GROUP REPRESENTATION
Company B5
Company C
Company D
7
Company E
Microsoft6
8
While not a distinct portion of its diversity strategy, Company B also contains 17 Special Interest Organizations (SIO). These groups tend to be
more local in nature and are available for any employee congregation that shares interests for example, Christian groups. Company C supports
109 total groups with national and localized groups within the above categories.
ERGs began forming at companies during the 1970s and 1980s in response to affirmative action,
companies' stronger diversity initiatives and employee grassroots efforts. Several profiled
companies report a relatively long history for some ERGs within their organizations. Some ERGs
within profiled companies have existed over the course of 15 years. Company C recently implemented and
encouraged ERG formation in 1997 as a result of an executive task force designed to review diversity within the
entire company.
History
CASE STUDY: ERG H ISTORY AT COMPANY C
Company C
Revenue: More
than $20 billion
Employees: More
than 100,000
Industry:
Information
Technology
Situation—In the mid-1990s, Company C established and structured executive task forces as part of
the company’s renewed commitment to diversity with the hopes that they would support the company
in achieving its diversity-related objectives. The task forces provided:
The ability to reach its broad employee population
The opportunity to clearly communicate its commitment to diversity—task forces are led by
Company C’s recognized leaders
Feedback into the key issues of their constituencies thereby assisting Company C in identifying
concrete steps and observations it could implement
An opportunity to collect the feedback of individuals with a robust perspective on career
advancement
A means for clearly exemplifying the organization’s “top-down, bottom-up” corporate-wide
commitment to diversity.
Result—The task forces recommended the formation of ERGs administered through the corporate
diversity office. Corporate diversity was charged with publicizing the guidelines and overall effort of
encouraging employees to form ERGs. Within months, 26 groups had formed in various business
units and regional sites.
5
Company B refers to ERGs as Employee Initiated Organizations to connote the groups’ distinction from corporate initiatives and corporate support.
Microsoft maintains ERGs for various subsets of each of categories, such as Fathers, Chinese and Indian. (www.microsoft.com/diversity)
Company B has both an Asian-American group and a group for Asian-Indians.
8
Company C has two groups for men on a local level although they are decidedly not as active as other groups
6
7
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
Background/Relationship
To Diversity
Formation
PAGE 7
Program Management & Structure
Critical Success Factors
The following graphic illustrates the typical process for registration of an ERG at profiled
companies and the guidelines that govern their activities:
GUIDELINES
CASE STUDY: OPERATING GUIDELINES AT COMPANY D
Interested individuals meet with or obtain guidelines
from HR/diversity office or website.
Guidelines legislate:
Use of company property, facilities and time
Group activities and charter
Corporate compliance issues
Revenue: More than $20 billion
Employees: 60,000 – 100,000
Industry: Financial Services
The following guidelines are similar to those in place at other profiled
companies
Typically, groups hold meetings and events during nonbusiness hours. When it is necessary for an event or activity
to be held during business hours, employee participation is
subject to the needs of the business and/or department.
Groups may meet on company premises permitting these
meetings do not infringe on the employee participants’
ability to fulfill on-going job responsibilities. Groups may
use company resources such as meeting facilities,
telephones, mail/fax, copiers and personal computers as well
as corporate newsletters and websites where appropriate.
Participants should provide other resources necessary for
group activities.
Groups do not serve as collective bargaining or negotiation
agents nor may they enter into external binding obligations
on the company’s behalf.
CHARTER
Group decides upon charter, goals, vision and
purpose of the group. Submits appropriate
information to local HR or corporate diversity office
for approval.
RECOGNITION
Corporate diversity affords recognition of group as
legitimate ERG thus affording the group use of
company facilities, such as communication avenues
(email, intranet support and space, etc.) and
eligibility for special funding opportunities.
ERGs within profiled companies receive funding from various sources including member dues,
fundraising, business unit budgets, diversity office and other grants. External funding is usually
dependent upon an underlying business purpose. The table below outlines the various sources of
funding for profiled ERGs and FleetBoston Financial.9
Funding
TABLE III: FUNDING SOURCE
Company A
Executive sponsor provides money from budget based upon proposed activity list (e.g., conferences).
Funding is estimated at $1,000 per year.
Company B
Groups receive money from member dues, sponsorship and grants from the company’s charitable
foundation. Diversity office may provide funds for periodic activities when solicited. Some groups are
classified as non-profit organizations.
Company C
ERGs are self-supporting non-profit groups. Fundraising and dues provide majority of funding. Some
business sites and executives may provide additional funds on a voluntary basis.
Company E
No set budget, groups are supported by local business units; groups must request funding for projects or
speakers.
$10,000 annually per group out of diversity budget (separate from HR).
FleetBoston
ERGs receive an operational budget of $10,000 for administration and program development
Company D
9
www.fleet.com
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
Background/Relationship
To Diversity
PAGE 8
Program Management & Structure
Critical Success Factors
Executive sponsors serve ERGs in a multitude of ways. Examples include roles as mentors,
providing a voice in management, lending legitimacy to the group and otherwise serving as a
sounding board for group initiatives. Several groups informally partner with executives within
the organization who serve as a sponsor or “champion,” but such relationships typically are not
mandatory and are left to the groups’ participants to foster.
Executive
Sponsors
The following graphic illustrates the acquisition and role of the executive sponsor at several profiled companies:
Mentor
Advocate within senior management
Executive
Sponsor Roles
Funding
Sounding board
EXECUTIVE INVOLVEMENT AT
PROFILED COMPANIES
COMPANY A
All ERGs have executive
sponsors who are not
necessarily a member of the
represented constituent group
Executive sponsors are the
primary source of funding
for ERG activities and
budget
Diversity office approaches
corporate executives to serve
as sponsors for groups
Membership
COMPANY B
Groups are responsible for
soliciting executives to
serve as sponsors
Some groups may have
multiple executive
sponsors
Sponsors serve as a source
of secondary funding for
special, periodic events
COMPANY C
Each of the eight
constituent groups has
executive sponsors
Local chapters may possess
local sponsors
Groups solicit sponsors as
part of a volunteer
arrangement between
group and sponsor
Sponsor may assist in
funding
Profiled companies note that all employees may participate in ERG activities and that
membership is typically open to current employees although some may extend membership
to contract and retired employees.
Participation is contingent only upon the employee supporting the mission and goals of the ERG. Interested parties
are encouraged to contact the appropriate individual within the desired group to solicit information regarding
participation. Participation information is available via the company’s intranet, diversity pamphlets or group
announcements. None of the profiled companies maintain a formal membership process for individuals to join an
ERG.
ERGs may publicize employee membership through corporate-sponsored websites, however, groups are not
required to divulge employee membership lists to corporate diversity offices, human resources or the company.
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
Background/Relationship
To Diversity
Program Management & Structure
PAGE 9
Critical Success Factors
ERGs participate in a variety of activities and contribute to the overall success of the
company. The groups sponsor activities and programs to celebrate cultural observations,
increase employee visibility throughout the organization and to lobby management for increased representation
within organizational committees. The following outlines some of the more common activities undertaken by ERGs
at profiled companies:
Activities
TABLE IV: ERG ACTIVITY
Networking
ERGs provide opportunities for group members to interact with similar
individuals within the company and community.
Mentoring
Senior group members work alongside less experienced members to assist in
career development and career pathing.
Guest Speakers
Groups sponsor sessions with experts from a variety of fields including
business, government and the arts. These speakers often provide expertise on
specific diversity or business issues company leaders may be facing, but lack
the expertise to discuss in detail.
Diversity Education
Recruiting
Growing the Business
Conferences
ERGs often serve as a forum for encouraging the discussion of diversity
issues throughout the rest of the organization.
Group members serve as point of contact for recruiting efforts within targeted
groups. Profiled companies include or consult appropriate ERGs in their
diversity recruiting efforts.
Groups assist in leading organizational efforts to expand business into new
demographic groups through advertising, marketing or sales campaigns.
“ERGs provide
the unwritten
rules and
procedures in
an informal
mentoring way.
They provide
the support and
information
that other
employees
might get in
one-to-one
relationships."
Margaret Simms,
Joint Center for
Economic and
Political Studies
ERG members may attend conferences geared toward professional
development and leadership in addressing workplace issues.
Several ERGs also maintain close ties with organizations outside of the company, working
toward diversity goals not only within the organization but within the community as well.
Several profiled companies mentioned the “Out and Equal” conference as an example of
upcoming ERG activity and partnership with external organizations.
Outside
Partnerships
Out & Equal is a national non-profit organization headquartered
in San Francisco whose goal is to provide services and programs
that promote equality for all individuals, especially the LGBT
community, families, and allies in the workplace.
50 California Street,
Suite 200
San Francisco, CA 94111
(415) 439-4272
www.outandequal.org
The Out & Equal Workplace Summit will feature over 45
workshops, presented by Human Resource professionals as well
as Lesbian, Gay, Bisexual and Transgender (LGBT) workplace
leaders.
The workshops focus not only on ERG issues such as funding
issues and creating business plans, but overall workplace issues
such as marketing company products toward the LGBT
demographic and fostering an inclusive workplace.
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
Background/Relationship
To Diversity
Program Management & Structure
PAGE 10
Critical Success Factors
Profiled institutions indicate that ERGs are an integral part of a larger diversity strategy and
senior management shares this sentiment. That said, organizations may experience mixed
results due to the existence of ERGs. While the existence of ERGs has provided profiled
institutions with better relationships with minority employees, the relative autonomy and “hands off” oversight
typically enjoyed by ERGs may result in an incongruent level of knowledge regarding the actual progress and/or
contributions made to the company by these groups.
Metrics
Although it is difficult to quantify the benefits of diversity programs and ERGs, measurement tools tied to diversity
performance include:10
•
•
•
•
•
Baselining and Benchmarking—comparison with best practice companies by examining demographics,
turnover inclusion and amount of access minorities have in companies’ decision-making process.
HR Metrics—recruiting, promotions and turnover numbers may be used to analyze the effects of diversity
programs on minority populations.
Indexes—based on industry comparison, nationally established criteria and placement on nationally
recognized lists.
Surveys—measurement of internal satisfaction with diversity programs using surveys, focus groups,
interviews and cultural audits.
SMG Index—tool developed by Microsoft, using EEO and AAP data to reveal the demographic trends by
calculating percentage representation of the workforce. Lower numbers indicate strong correlation with
diversity goals.
While it remains difficult to quantify the affect ERGs ultimately have on corporate success, all profiled
organizations indicate that anecdotal evidence strongly suggests metrics such as turnover, retention, recruitment,
productivity and morale are greatly augmented by ERG presence and activity.
ERGs typically are not required to present annual reports to senior management or
diversity representatives, however they publicize accomplishments through informal
presentations to diversity personnel, intranets, newsletters and other forms of internal
communication. The graphic below illustrates examples of ERG success:
Accomplishments
Company D’s women’s groups have had a profound impact on the role of women within the
company’s workforce. This group played a major role in introducing flexible working hours to the
company’s underwriters. As a result, estimated turnover among these employees decreased by 10
percent.
Policy
Implementation
Company E’s gay and lesbian group successfully campaigned for domestic partner benefits. The
group also oversaw changes in language within company benefits materials changing the word
“spouse” to “partner.”
Company A is currently in the process of learning how to better utilize ERG expertise. When the
company implemented domestic partner benefits with minimal input from it LGBT group,
members of this group were disappointed in its participation in this process. The interviewed
individual stated an increase in encouragement at the company’s recent efforts at fostering a
consultative relationship.
10
Jacqueline Gilbert and John M. Ivancevich, “Valuing Diversity: A Tale of Two Organizations,” Academy of Management Executive
(February 2000). (Obtained through Lexis-Nexis). Edward E. Hubbard, “Diversity and the Bottom Line: Facts, Figures and Financials,” Diversity Factor
(Summer 1999). (Obtained through Lexis-Nexis). Jonathan Stutz and Randy Massengale, “Measuring Diversity Initiatives,” HR Magazine (December 1997).
www.shrm.org/hrmagazine/articles/1297div.htm.
 2001 Corporate Executive Board
STRATEGIC TRENDS IN EMPLOYEE RESOURCE GROUPS
SEPTEMBER 2001
PAGE 11
Professional Services Note
The Corporate Leadership Council has worked to ensure the accuracy of the information it provides to its members.
This project relies upon data obtained from many sources, however, and the Council cannot guarantee the accuracy
of the information or its analysis in all cases. Further, the Council is not engaged in rendering legal, accounting or
other professional services. Its projects should not be construed as professional advice on any particular set of facts
or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither
Corporate Executive Board nor its programs is responsible for any claims or losses that may arise from any errors or
omissions in their reports, whether caused by Corporate Executive Board or its sources.
 2001 Corporate Executive Board