David Gilroy explains how ERGs can be a powerful and positive force if they come from within the colleague team
Referring to far-right attitudes towards immigration in his book ‘How They Broke Britain’, James O’Brien writes: “Since ancient times, the most successful societies have been the most diverse.” This is a given – so why are we still talking about it?
On the eve of the UEFA Euro 2024 football tournament, Ilkay Gündoğan, the captain of the hosts Germany, faced questions at a press conference about the team’s prospects. He was expecting the topics to cover strategy, tactics, morale in the camp, updates on fitness and injuries et al. Instead, he was hit by pointed enquiries around the racial make-up of the national team, a squad reflecting the different ethnic groups in German society. The main tenor being that there should be a greater percentage of white “Aryan” participants in the group. Gündoğan, who is himself of Turkish origin, was shocked on two levels. First, the racial undertones of the questioning. Second, and just as shocking to Gündoğan, the thinking that management would actively sacrifice the strength of the squad by not drawing on the full range of diverse talents available for selection.
Meanwhile, in the same week and in the same sport, Women in Football (WIF) chief Yvonne Harrison said she was deeply concerned by a report revealing that discrimination against women remained an overwhelming problem. Nearly nine in 10 women who responded to WIF’s annual survey said they had experienced gender-based discrimination at work. If you’d asked me which sectors of our society were the most enlightened about diversity and inclusivity (D&I), I would have said sport and contemporary music. Yet there is still a job to be done in these areas and in our wider society. Not just in our country, but across the world. A lot of this is rooted in centuries-old preconceptions and attitudes, and it will take time and hard work to turn it around.
In The Sunday Times’ Best Places to Work 2024 report, Jim Armitage writes about James Timpson, the chief executive of Timpson, the thriving shoe repairs chain. His management team do not obsess with the day-to-day nuts and bolts of stock and money in the till. Instead, they talk about the two most important factors in running their business – people and culture. Timpson says if they get that right, they make money. Diversity, inclusion and well-being is the common thread that runs through Best Places to Work 2024 across companies of all sizes. Happy staff make for happy customers and strong enduring businesses. Particularly those in the service sector. There is clear evidence that businesses actively embracing and promoting D&I are commercially successful. Recent examples include Tesco.
Read more: Gilroy’s viewpoint: Can profitability issues be found through innovation?
For leadership in our wholesale sector, check out the Federation of Wholesale Distributors website. It offers a range of real-world and practical guidance, especially the Diversity in Wholesale initiative (see page 8 of this issue for further information). There is a wealth of knowledge, guidance and training available for companies here, including the workplace standards and dignity charter.
The Seven Pillars of Diversity are a good place to start for leaders looking to develop a comprehensive D&I framework. These pillars help create a more inclusive and productive workplace by addressing various aspects of diversity.
Race and ethnicity centres on creating a workplace of all racial backgrounds to feel valued and included. Gender diversity involves promoting equality and inclusion for all genders. This incorporates equal opportunities and family-friendly support policies.
Age diversity means recognising the value of different age groups in the workplace and takes in mixed-age teams, lifelong learning and succession planning to harness knowledge transfer between generations.
Fostering an inclusive environment for people with disabilities involves removing barriers to participation and success. This includes ensuring that physical and digital workplaces are accessible and there is a supporting inclusive culture that values the contributions of employees with disabilities.
Creating an inclusive environment for all sexual orientations involves recognising and supporting LGBTQ+ employees and takes in non-discrimination policies, inclusive benefits and support networks.
Socioeconomic status acknowledges the support required for employees from diverse economic backgrounds, including fair compensation and a fair and balanced recruitment model. Respecting religious diversity involves accommodating different religious beliefs and practices. This includes encouraging interfaith dialogues and activities to promote understanding and respect.
Employee Resource Groups (ERGs) have also become an integral part of the corporate landscape, particularly in organisations committed to fostering diversity and inclusion. ERGs, also known as affinity groups or employee networks, are voluntary, employee-led groups that aim to foster a diverse, inclusive workplace aligned with the organisations they serve.
These groups provide support, enhance career development and contribute to personal development in the work environment. Their significance is profound, particularly in promoting diversity and inclusion within the workforce. ERGs typically form around shared characteristics or life experiences, including, but not limited to, race, ethnicity, gender, sexual orientation, disability and religion. These groups serve as a platform for employees to share experiences, address challenges and celebrate their unique identities.
As they are by the people for the people, ERGs provide a safe space for under-represented employees to voice their concerns and advocate for changes that promote a more inclusive work environment.
There are five key ERG components:
Creating a Sense of Belonging: One of the primary functions of ERGs is to create a sense of community and belonging among employees. This is particularly important in large organisations where individuals may feel isolated or underrepresented.
ERGs foster a supportive network that can significantly enhance the employee experience. According to a study by Mercer, employees who feel a sense of belonging are three times more likely to look forward to coming to work and are three times more likely to stay with their organisation.
Advocacy and Voice: ERGs give a voice to employees who might otherwise feel marginalised. They provide a structured platform for employees to share their concerns and advocate for policy changes. For example, ERGs can influence organisational policies on flexible working, parental leave and mental-health support, ensuring they are inclusive and equitable.
Professional Development: ERGs often provide opportunities for professional growth and development through mentoring, training and networking events. These opportunities can be particularly beneficial for minority employees who might lack access to informal networks and mentors. By participating in ERG activities, employees can develop leadership skills, increase their visibility within the organisation and enhance their career prospects.
Attracting and Retaining Talent: Organisations that actively support ERGs are more attractive to potential employees, particularly those from under-represented groups. A strong commitment to diversity and inclusion can enhance an organisation’s reputation as an employer of choice. Moreover, ERGs can play a critical role in retaining talent by fostering a supportive and inclusive work environment.
Cultural Competency: ERGs help to build cultural competency within an organisation. Through activities, events and discussions, ERGs educate employees about different cultures, perspectives and experiences. This can lead to a more inclusive workplace culture where diversity is celebrated and respected.
Academic research supports the positive impact of ERGs on workplace diversity and inclusion. A study published in the Journal of Business and Psychology found that ERGs positively influence employees’ perceptions of organisational support, which in turn enhances job satisfaction and commitment. Furthermore, ERGs have been shown to play a crucial role in reducing turnover intentions among minority employees.
England didn’t win the Euro 2024 tournament, but they did show togetherness and resilience in toughing their way through to the final. They put this down to their joyously diverse and inclusive group culture.
Footballer Luke Shaw said: “The bond we have is special. It’s not one I’ve been a part of before.” This is a living example of an ERG in action.
David Gilroy is the managing director of Store Excel
