The case for employee resource groups. A review and social identity theory-based research agenda

Published date06 November 2017
Pages1816-1834
Date06 November 2017
DOIhttps://doi.org/10.1108/PR-01-2016-0004
AuthorTheresa M. Welbourne,Skylar Rolf,Steven Schlachter
Subject MatterHR & organizational behaviour,Global HRM
The case for employee
resource groups
A review and social identity theory-based
research agenda
Theresa M. Welbourne
Department of Management,
University of Alabama, Tuscaloosa, Alabama, USA
Skylar Rolf
Business Administration Division, Pepperdine University,
Malibu, California, USA, and
Steven Schlachter
Department of Management, University of Nebraska-Lincoln,
Lincoln, Nebraska, USA
Abstract
Purpose The purpose of this paper is to demonstrate that employee resource groups (ERGs) are a valuable
addition to organizations and should be an important focus of research, particularly given the diversity and
inclusion challenges faced by many businesses and communities today.
Design/methodology/approach The authors review the ERG literature, develop a theoretical framework
using social identity theory (SIT) and suggest research directions.
Findings ERGs represent a fairly unexplored area of research. Using SIT, a series of propositions is
presented for research into ERG effects on individual, group and organizational outcomes.
Research limitations/implications ERGs have impact beyond the topics explored using SIT. As ERGs
become more prominent, there is ample room to conduct empirical research to learn more about the
underlying process by which ERGs are affecting identity and employee integration (or lack of ) into groups
and organizations.
Originality/value Despite their prevalence in the business world, there has been a scarce amount of
theorizing and research focused on ERGs. To help facilitate the development of this work, the authors
introduce a theoretical framework using SIT, as well as propositions that can serve to spur additional
research on a critical topic for todays businesses.
Keywords Human resourcemanagement, Critical, Diversity management, Equality, diversity and inclusion,
Affinity groups, Employeeresource groups
Paper type Literature review
Organizations are made up of people, who are by nature social creatures. As such, these
individuals come together in a slew of formal ways set up by organizational structures
(e.g. company hierarchy, work teams), and in many cases, employees use informal methods
to meet others like themselves (Byrne, 1971; Tsui and OReilly, 1989). The like themselves
phenomenon has led to many formal and informal groupings of people at work.
For example, unions were formed when people focused on improving wages and working
conditions gathered together. Employees start clubs based on sports activity (e.g. baseball
teams) and other interests (e.g. cooking clubs). Additionally, employees over the years have
sought to unite based on other forms of similarity, including the demographic criteria of age,
gender and race (Douglas, 2008; MacGillivray and Golden, 2007).
In the 1960s, the needs of individuals to be sociallyconnected coincided with the business
goals of organizations tryingto improve diversity and inclusion(D&I). It was during thattime
in history that affinity groups (now called employee resource groups (ERGs) were formed.
Personnel Review
Vol. 46 No. 8, 2017
pp. 1816-1834
© Emerald PublishingLimited
0048-3486
DOI 10.1108/PR-01-2016-0004
Received 7 January 2016
Revised 9 October 2016
28 October 2016
2 November 2016
Accepted 6 February 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0048-3486.htm
1816
PR
46,8
A description of the foundational events that led to the formation of affinity groups is
provided by Douglas (2008, p. 12):
Affinity groups began as race-based employee forums that were created in response to the racial
conflict that exploded during the 1960s. In 1964, Rochester, New York had the grim distinction of
being the first city to experience a modern-day race riot. The violence shocked the nation - and no
one more than Joseph Wilson, CEO of Xerox Corporation [] it was with his support that the black
employees within Xerox formed the first caucus group to address the issues of overt discrimination
and agitate for a fair and equitable corporate environment.
Since that first Black caucus, organizations around the world have added similar internal
groups that have broadened beyond racial issues to bring people together based on other
characteristics and interests. Today, the term caucus is rarely used, and instead names such
as affinity groups, ERGs, employee networks, employee councils, employee forums and
business resource groups are more popular. For the purposes of this paper, all of these
groups are referred to as ERGs. Catalyst, which is a not-for-profit organization focused on
workplace inclusion (primarily for women), conducts extensive research as part of their
mission. Within that body of work they also have conducted studies on ERGs and define
them as follows: ERGs are groups of employees in an organization formed to act as a
resource for both members and the organization. ERGs are voluntary, employee-led groups
that can have a few members or a few thousand. They are typically based on a demographic
(e.g. women), life stage (e.g. Generation Y), or function (e.g. sales). They are dedicated to
fostering a diverse and inclusive work environment within the context of the organizations
mission, values, goals, business practices and objectives(Kaplan et al., 2009, p. 1).
ERGs have been growing over the past 25 years (Friedman and Craig, 2004), are
becoming more prevalent globally (Mercer, 2011), and are no longer only tools for D&I but
also are driving innovation and change in many firms. Consider the 2011 Mercer report,
which published results from a survey of 64 companies. The report notes that ERGs are
thriving [] many companies are experiencing a resurgence of enthusiasm for ERGs
(Mercer, 2011, p. 1). However, the increasing presence of ERGs and the demonstrated
enthusiasm toward them within the business world have only begun to attract interest from
researchers. While valuable, the few ERG studies that do exist provide initial insights that
often focus on one type of ERG. There is a lack of work that addresses overall outcomes for
individual members; additionally, strong theoretical frameworks are lacking. Thus, the
purpose of this paper is to demonstrate that ERGs are valuable additions to organizations
and should be important areas of research, particularly given the D&I challenges faced by
many businesses and communities today. In this paper, we review the ERG literature,
develop a foundational theoretical framework based on social identity theory (SIT) and
suggest research directions.
The case for studying ERGs
ERGs are unique and growing additions within many Fortune 500 firms as well as within
smaller businesses. Firms such as American Airlines, Harley-Davidson Motor Company and
Wells Fargo( Mercer,2011) have ERGs and, whilethey do have some similaritiesto traditional
work groups and teams,they possess several important differences. In most cases employees
need to create the demand for an ERG to formally start one since they are not generally
initiated by the firm (Friedman and Craig, 2004; Kaplan et al., 2009). As employees ask to
create ERGs,the leaders are going above and beyond theircore jobs in their ERG-related work
(Douglas, 2008). These employees are committed to working toward ERG goals even with
limited financial support ( Jennifer Brown Consulting, 2010; Singh et al., 2006).
Welbourne and McLaughlin (2013) suggest three overarching categories for ERGs.
The first are social-cause-centered ERGs (e.g. supporting environmental, literacy or cancer work).
1817
The case for
employee
resource
groups

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