Employee resource groups can transform a company’s culture by creating a sense of belonging, providing opportunities for growth and connection, and giving historically excluded employees a space where their voices are heard.

But when a company decides to conduct layoffs and cut back on its diversity, equity, and inclusion commitments, these changes often impact ERGs. ERG membership declines and ERG leaders feel overwhelmed operating with little budget and support.

Dumebi Egbuna, co-founder of Chezie, said in a Bloomberg article that “since mid-2023, some ERGs have reported that fewer people are turning up for events and stepping into the voluntary leadership roles,” and “It’s become clear that many ERG leaders have been caught up in corporate layoffs.”

Without a strategy in place, ERG members and leaders may feel abandoned during times of organizational change. Here’s what often follows:

• Employees feel disconnected and disengaged, leading to lower morale and productivity.
• ERG leaders are burned out trying to maintain engagement and retention by themselves without executive support, budget, or resources.
• Companies have less understanding of diverse employees’ needs.
• A lack of ERG support can be seen as the company’s lack of commitment to DEI, which can erode trust in leadership and the organization's values. This can have long-term effects on employee loyalty and retention.

During times of organizational change, downsizing, and budget cuts, companies must continue supporting ERGs to maintain a sense of belonging. Here are five top priorities.

Provide ERGs with strong executive support

Ensure ERG leaders are building relationships with active executive sponsors who advocate for their initiatives and provide guidance, resources, and support. Executive sponsors play a crucial role in addressing any challenges the ERG may face and in championing their work within the organization.

Offer ERG leaders comprehensive training

This includes leadership development programs, workshops on topics like inclusive leadership and conflict resolution, and access to professional development opportunities. Equipping ERG leaders with these skills can enhance their ability to drive meaningful change within their groups and across the organization.

Promote ERG visibility throughout the organization

Highlight the impact of ERGs within the organization and publicly recognize their contributions. This can include showcasing ERG initiatives in company communications, celebrating ERG milestones and achievements, and incorporating ERG activities into company events.

Ensure ERGs are a part of inclusive decision-making

Involve ERG leaders in decision-making processes that impact their group and the company’s culture. Seek their input on DEI policies, resource allocation, and organizational changes that may affect ERG members. By including ERG leaders in these discussions, organizations can ensure that decisions are made with an understanding of their impact on historically excluded employees.

Support ERG leaders' well-being

Provide dedicated time during the workday for ERG activities, offer flexibility in schedules, and encourage work-life balance to prevent burnout. ERG leaders often juggle their responsibilities with their regular work duties, and providing them with the necessary support can help them manage their workload effectively while maintaining their well-being.

By providing executive sponsorship, training, recognition, inclusive decision-making, and flexible work schedules, companies can better support ERGs during times of change and ensure they continue to build a culture of belonging.

Want to set your ERGs up for success?

Perfeqta’s virtual and in-person trainings help leaders identify how their ERGs can champion equity and inclusion.

Take a look at our case study to see how we helped Phreesia’s six ERGs set strategic goals to drive growth and visibility within the organization.