Employee resource groups (ERGs) play a vital role in fostering inclusion and diversity (I&D) in the workplace. These employee-led initiatives provide spaces for individuals with shared identities or interests to connect while promoting broader organizational goals such as innovation, collaboration, and retention. However, these groups must align with federal laws and regulations — namely, they cannot exclude anyone based on race, sex, or other protected characteristics.
ERGs have historically focused on issues affecting women; communities of color; LGBTQ+ employees; veterans; parents and caregivers; and people with disabilities. ERGs can create a sense of belonging and help foster engagement, but to protect your organization from potential compliance risks, you must ensure they are open to everyone.
This guide will walk you through actionable steps to ensure your ERGs meet legal requirements and drive meaningful outcomes.
Why Legal Compliance in ERGs Matters
Although ERGs and affinity groups are designed to promote inclusivity, groups that limit membership to only certain workers create compliance challenges. Federal laws such as Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act govern workplace inclusion and prohibit discrimination based on race, sex, religion, disability, and other protected characteristics.
Failing to align ERGs with federal regulations can expose organizations to:
- Claims of exclusion, favoritism, or unfair treatment.
- Unintended discrimination that violates anti-discrimination laws.
- Reputational damage.
SHRM's Belonging Enhanced by Access Through Merit (BEAM) Framework provides a robust foundation to evaluate and align ERGs with federal law, including recent executive orders on diversity, equity, and inclusion (DEI). By focusing on merit and measurable outcomes, the BEAM Framework shifts the focus from optics to impact.
Member Resource: Implementing SHRM’s BEAM Framework for Inclusion
Here are some actionable steps to supporting ERGs that are legally compliant and effective:
1. Review Current Policies
Examine your organization’s current ERG charters, frameworks, policies, and related communications. (Consider using the BEAM Framework as a guide.) Conduct a detailed review of membership requirements, leadership selection criteria, funding structures, and activities to ensure compliance and inclusivity.
Key Question: Are programs and opportunities open to all employees, regardless of protected characteristics such as sex, race, or religion? Avoid creating criteria that unintentionally exclude a subset of employees. Consider systemic barriers that may limit employee access to certain ERGs or initiatives.
Pro Tip: One of the most effective ways to ensure compliance is to make ERGs open to all employees, regardless of whether they belong to the group’s target demographic. While discussions and initiatives may focus on a specific community or area of concern, allowing participation from all employees helps avoid any claims of exclusion or discrimination.
Example: A Women in Leadership ERG should be open to male employees who want to advocate for or support gender equity.
ERGs should be open to all employees. That was already best practice before DEI executive orders were passed under the Trump administration.
2. Update Policies as Needed
- Add clarity: Policies should explicitly prohibit discrimination or exclusion within group activities. Ensure the purpose and operating guidelines for all ERGs are transparent and compliant with legal standards.
- Audit regularly: Conduct regular audits of ERG activities to ensure alignment with federal laws and organizational policies. Use SHRM’s BEAM questionnaire to evaluate effectiveness.
- Accommodate diverse needs: Offer accommodations for members who need them due to disabilities or religious practices. These can include providing accessible meeting spaces or avoiding scheduling conflicts with religious observances.
3. Implement Skills-Based Leadership Selection
ERGs should adopt a merit-based approach to leadership that looks at qualifications, relevant experience, and contributions. This ensures accessibility and avoids favoritism based on identity.
Key Question: Are roles within ERGs (including leadership positions) based on qualifications, such as expertise or voluntary contributions, rather than demographic criteria?
4. Train ERG Leaders on Compliance
Provide training on anti-discrimination laws and the importance of inclusivity for ERG leaders. This helps ensure that leaders understand how to balance a group’s unique focus with compliance with federal regulations.
Pro Tip: While it may be necessary to offer new training for all current group leaders in the wake of changes to the I&D discipline, be sure to have recordings and/or documents that go along with those trainings available for future ERG leaders to consult.
5. Standardize Organizational Objectives
Align ERGs with broader organizational goals, such as professional development, knowledge-sharing, and innovation. Clear objectives help demonstrate that these groups serve a business purpose and aren’t just performative efforts.
Example: Consider creating ERGs based on building new skills, such as a group for individuals who want to learn about AI tools, or one for people who love data visualization and want to use it in more ways within your organization.
Pro Tip: Leaders should hold ERGs accountable to measurable objectives that align with company values and legal requirements.
Key Question: Do your ERGs promote skill development for all members, creating opportunities for advancement and professional growth? For example, leadership roles within ERGs can serve as career development opportunities.
6. Communicate Inclusively
Inform all employees, across all locations and roles, about ERG activities and opportunities through accessible, inclusive communication. Leverage multiple platforms such as intranets, email updates, and team meetings.
Place emphasis on the values and goals of the ERG, rather than focusing solely on the demographic it represents.
Example: Instead of saying, “Our ERGs support minority groups,” say, “Our ERGs provide a supportive space for individuals to connect around shared experiences, identities, and interests.”
7. Leverage Data for Continuous Improvement
Collect feedback and analyze participation data regularly. Identify and address gaps in inclusion, access, and communication. Use this data to refine policies and maximize the reach and impact of ERG initiatives.
Pro Tip: Quantitative data sources include tracking membership growth over time, collecting attendance data, and using anonymous feedback surveys.
- Focus groups: Conduct discussions with members and nonmembers to gather nuanced insights.
- Interviews with ERG leaders: Get firsthand perspectives on challenges, successes, and resources needed.
- Peer benchmarking: Compare your ERGs to those in similar organizations or industries for actionable inspiration.
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