Utilizing Employee Resource Groups to Achieve Business Objectives

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1 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

2 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

3 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

4 Other Names Affinity Groups Employee Resource Groups Business Network Groups

5 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

6 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

7 Type of Organizations that have ERGs ERGs Come of Age: The Evolution of Employee Resource Groups Mercer LLC January 2011

8 The Array of ERGs ERGs Come of Age: The Evolution of Employee Resource Groups Mercer LLC January 2011

9 Where do ERGs Provide Value ERGs Come of Age: The Evolution of Employee Resource Groups Mercer LLC January 2011

10 Where do ERGs Provide Value (continued) ERGs Come of Age: The Evolution of Employee Resource Groups Mercer LLC January 2011

11 ERG Membership Rates ERGs Come of Age: The Evolution of Employee Resource Groups Mercer LLC January 2011

12 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

13 A Pause for Questions

14 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

15 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

16 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

17 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 invitations Have a member of the ERG stop by the new employee s office Hold social/information events to attract possible members

18 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

19 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

20 ERG Professional Development 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 and Retention Activities

21 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

22 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

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