
Digiday Media’s WorkLife
published another
rambling report on ERGs, underscoring how such heat
shield hangouts can be a “source of toxicity” if not properly organized and
supported. Given that Adland has a history of addressing all things diversity
with disorganization and disinterest—as well as deliberate deception, deferment,
diversion, and denial—it’s safe to say most ERGs in White advertising agencies
are probably toxic waste dumps. Which is extra outrageous, given the latest divertsity
move toward embracing sustainability.
How ERGs can
be a ‘source of toxicity’ if poorly run and unsupported
By Cloey Callahan
Employee
resource groups, or ERGs, are now a staple at most workplaces. But if poorly
run, they can have disastrous consequences, some diversity chiefs believe.
The
earliest versions of ERGs sprung up in the 1960s when Black workers at Xerox
organized to discuss race-based tension in the workplace and continue to be
relevant today for issues like gender, identity, politics and more.
If
run well, they can improve work conditions for alienated workers, bring
employees together in a safe space, build camaraderie and more. A new report from
charitable donation-management platform Benevity found that 90% of
respondents say they have personally benefited from DE&I initiatives at
work.
On
the flip side, if ERGs are not properly supported by employers, they can
backfire. “If they are not supported well, that can actually become a
source of toxicity in the business and it can have unintended consequences
around engagement and inclusion and diversity,” said Sona Khosla, chief impact
officer at Benevity.
We
spoke to experts to identify the possible outcomes of ERGs if they are not
supported in the right ways and how leaders avoid them failing.
1.
ERGs can end up ‘reinforcing stereotypes.’
Nicole
Simpson, director of DE&I for RAPP US, a global marketing and advertising
agency, has years of experience running a variety of ERGs. She says that one of
her biggest concerns is that the ERG ends up reinforcing stereotypes.
“If
there aren’t these right containers for the conversations, the people involved,
how the communications are rolled out, it can be disastrous on multiple levels
in terms of creating division,” said Simpson.
A
well run ERG means battling long-standing stereotypes and misconceptions. If
it’s not being run smoothly, there could be messaging and imagery that
reinforces negative stereotypes. Or, it may unintentionally create a sense of
homogeneity that reinforces the stereotype that people from the group are all
exactly the same.
“If
the ERG isn’t managed properly and the content perpetuates stereotypes and
negative assumptions about the group, it creates division and feelings of
tension,” said Simpson.
That’s
why Simpson recommends that the foundation of the ERG is built on respect and
love. Without that, she says it can lose its purpose and focus.
2.
ERGs can lead to tokenism.
ERGs
can quickly feel like a company is simply paying lip service to diversity and
inclusion rather than genuinely valuing different perspectives. If there is an
ERG but it is not getting support from the company, it might feel as though it
is just a token play for a company trying to amp up its diversity, when it
really isn’t doing what it can to support it.
When
employees are going out of their way to volunteer to lead these groups, and the
company uses it to attract more people to the company, but then doesn’t
actually support its efforts, then it quickly falls flat. Most (95%) employees
now weigh a prospective employer’s DE&I efforts when choosing between job
offers with similar salary and benefits, according to Benevity’s 2023 The State
of Workplace DEI report.
“These
groups are supposed to be safe spaces for the community,” said Simpson. “If
they’re not handled properly, they can be a sign of superficial support if
they’re not given the financial backing, backing from leadership, and buy-in
from leadership. If that’s not done properly, it becomes this tokenized group
and that can be really hurtful to the community that it was supposed to be
built to help.
“We
need the companies to actually walk the walk and not just talk the talk,” she
continued. “They need the proper support so they aren’t tokenized.”
3.
ERGs can build a divisive environment.
If
an ERG continues to not receive support from the company’s senior leadership,
its members may feel even more underserved than before. If an employee is
trying to build a community at work and is left in the dust, they might feel as
though what they care about really doesn’t matter.
“The
right support requires an underlying thoughtfulness that needs to go behind the
organization of these groups,” said Simpson.
Khosla
says that company leaders need to be open to listening, as much as they are to
guiding, ERGs.
4.
ERGs can be an additional burden on marginalized groups.
The
work to run an ERG is tiring. While there is a high payoff when it goes well,
it is a heavy lift after a long day job. One way that companies are solving for
that is compensating leaders who are running these groups. Yet, only about 5%
of companies actually compensate ERG members for the very tangible benefits
their work brings to the organization.
“They’re
typically voluntary and not paid,” said Khosla. “The reality is these folks are
committing a significant amount of time in building the culture and building a
space that is inclusive and celebrates diversity. Some companies choose to
recognize they value this and pay a stipend.”
If
an organization isn’t able to financially support with a stipend, they could
lessen that burden by providing financial support for events that they hold.
“If
they don’t, ERGs then have to go and negotiate and are asking for favors,” said
Khosla. “It reinforces this idea that it’s not worth paying. That is the
biggest danger of it.”
Additionally,
Khosla argues that there should be a clear understanding of what ERGs’ roles
are versus HR. While ERGs can help build community, it’s up to HR to ensure
there is no bias in systems.
“It’s
better that ERGs see themselves as the voice of the community, sharing that
insight back with the HR teams, but the HR teams are the ones that have the
skills and the tools and resources and company-wide reach to make large, broad
systemic changes,” said Khosla. “You almost honor the skillsets of the two
different groups.”
Outlining
this could help workers leading ERGs better understand that it isn’t up to them
to solve everything. Khosla says that ERG leaders should focus on creating the
group, driving membership, and sharing learning resources.
“It’s
important to not put the burden of learning onto the ERG for the rest of the
organization,” said Khosla. “That can create misaligned expectations.”
5.
ERGs can give the false impression that all diversity issues have been solved.
It’s
true that ERGs can help move the needle. Benevity’s report found that 97% of
employees agree ERGs help make the workplace more equitable and inclusive.
However, they need to be paired with other efforts to make the workplace truly
inclusive and welcoming.
“For
example, if the only time you are giving your Black ERG money is for Black
History Month, that’s a fail,” said Simpson. “If the only time you are giving
your API ERG funding is for API History Month, you’re failing.
Simpson
says it’s important to ensure that the commitment is brought through the entire
employee experience, not just for special cultural events, especially because
it ties back into tokenism and reinforcing stereotypes.
“Understand
that proper support here all around is what will make these groups successful
and without it, they will inevitably fail,” said Simpson.