Utilizing Employee Resource Groups to Achieve Business Objectives

INCLUSION CHANGE MANAGEMENT
CONFERENCE
Utilizing Employee Resource Groups
to Achieve Business Objectives
George Sample
Manager, Diversity & Inclusion
Lubrizol Corporation
Thomas Hawn
President
Plexus Education Foundation
August 17, 2011
Corporate College East
Warrensville Heights, Ohio
Agenda
• Definitions and Terms
• Some History
• Who has them and what kind do they
have
• What can they do for your organization
• Best Practices and Strategies
Employee Resource Groups
Working Definition – A organizationally supported
group of employees drawn together by
characteristics that the group holds in common.
– Ethnicity
– Gender
– Sexual Orientation
– Generations
– Religious Beliefs
– Disability Status
Other Names
• Affinity Groups
• Employee Resource Groups
• Business Network Groups
Why ERGs?
A well formed and vibrant group of ERGs can
provide the organization with:
•
•
•
Activities with direct impact on business
development (product development, marketing,
branding)
Activities aligned with talent acquisition and
retention
Activities that support workplace diversity and
inclusion
People who join and participate in an ERG are
more engaged and better connected to
organizational strategy
The Business Case for ERGs
• To provide the organization with employee support, knowledge
and engagement around:
– Business Development and Brand
– Employee Recruitment
– Employee Retention
– Professional Development
• And remember to think about what is in the business case for the
employees
– Visibility
– A voice to management
– Support and recognition
Type of Organizations that have ERGs
ERGs Come of Age: The Evolution of Employee Resource Groups – Mercer LLC January 2011
The Array of ERGs
ERGs Come of Age: The Evolution of Employee Resource Groups – Mercer LLC January 2011
Where do ERGs
Provide Value
ERGs Come of Age: The Evolution of Employee Resource Groups – Mercer LLC January 2011
Where do ERGs Provide
Value (continued)
ERGs Come of Age: The Evolution of Employee Resource Groups – Mercer LLC January 2011
ERG Membership
Rates
ERGs Come of Age: The Evolution of Employee Resource Groups – Mercer LLC January 2011
What is ERG Membership?
• Everyone defines it differently
• Quite often there is no “formal”
membership to the group
• The leadership of the group is clear
• Attendance at function sponsored by the
ERG is used as a proxy for membership
A Pause for Questions
How do I start an ERG?
First Steps
• Management Buy-In and Support
• Selling the benefits and explaining the risks
• Executive Sponsors
•
Generally the executive sponsor should not be
the same demographic as the group being
sponsored
• A chance for a senior executive to learn about a
different diversity dimension
• Can become a voice for the group at senior levels
• Needs to have passion and skills to support the
group in question
How do I start an ERG?
First Steps
• Finding the leader of the ERG
• High potential staff that have shown interest in
the issues of the group
• People you have expressed issues of
importance to the group
• Perhaps the “leader” of an organic ERG that
exists outside of the corporate structure
• Providing clarity to the prospective leader on
what this role will take in time, energy and
support
How do I start an ERG?
First Steps
• Organizational Structure
– Since membership is not always clear, structure is
not always easy
– Create a Leadership Team for the ERG
• Provides more voices for decisions
• Provides for future leaders of the group
• Can be appointed by the sponsor
• Can be self sustaining in that it recruits its own
new members
• Suggest staggered terms and term limits
How do I start an ERG?
First Steps
• Recruiting Members
– Publicize the ERG in employee communications
– Establish an ERG site on your intranet
– Identify members by demographics and send email
invitations
– Have a member of the ERG stop by the new
employee’s office
– Hold social/information events to attract possible
members
ERG Recruiting Activities
• Ambassadors to educational institutions and organizations
– Diverse Professional Organizations
– College Recruiting
• Closing the deal with diverse candidates
– Cleveland Clinic used their Hispanic ERG to help convince a
physician to relocate to Cleveland by introducing him and his
family to the community
– Ernst and Young used their LGBT ERG to help relocate a gay
partner and his spouse to Cleveland from Paris by introducing
him and his spouse to members of the local LGBT community
ERG Onboarding Activities
• Inform new hires of the existence of the range of ERGs
• Connect ERG members with similar new employees to
create relationships
– Gallup says everyone needs a best friend at work to
be engaged at work
– Lubrizol’s Young Professional group brings new
hires and corporate officers together for lunch
ERG Professional Development
and Retention Activities
• Mentoring Circles
– Self managed groups of employees that investigate topics
together
– A group of employees that rotate through various senior
managers who discuss various issues, such as business
strategy, product development, core values
• ERG establish its own internal peer to peer mentoring program
• Networking Events
• Career Enhancement Events
– Outside Speakers
– Workshops
ERG Business Development Activities
• Dells’ GenNext ERG is testing products prior to launch
• The McDonald’s women’s leadership network has
influenced menu items to include more salads and fruit
items
• Wells Fargo uses its PRIDE (LGBT) network to speak
to the LGBT community and Wells Fargo’s commitment
• IBM’s Disability network was the driving force for IBM
to create more products to serve the disabled
community.
• Key’s LGBT ERG participates in multiple Pride festivals
to establish the brand
Key Take-Aways
• Provide structures and forums through which ERGs
and business leaders can interact around business
issues
• Develop tool kits and templates to help ERGs take their
first steps into business-related activities
• Partner with HR and talent management leaders to
leverage ERGs for talent
• Harness the culture change potential of ERGs by
engaging them in climate assessment, visioning the
future and communicating to other employees