Too often, DEIB – Diversity, Equity, Inclusion and Belonging – is a corporate buzzword, used more to bolster a company’s image than to drive real change.
But what good is an acronym without action? Many organisations pay lip service to DEIB, yet few go beyond words to create a workplace where these values actually shape experiences. Real DEIB means understanding that each letter represents a commitment requiring specific, intentional actions that improve company culture. And while businesses are increasingly acknowledging the ‘why’ of DEIB, the ‘how’ is sometimes less clear.
This is where Employee Resource Groups (ERGs) can drive real change. These groups, led by employees and focussed on shared identities and interests, are powerful vehicles for embedding DEIB into the everyday. They can help companies take practical steps – not just slogans – to turn well-meaning ideals into concrete actions. Then and only then can organisations create an environment where everyone has a chance to contribute, thrive, and feel valued – making workplaces far more innovative, resilient and profitable.
Diversity: The power of difference
Innovation thrives when every employee can participate. True diversity is about bringing a range of experiences and perspectives into the workplace, recognising that individuals’ backgrounds – including race, gender, sexual orientation, socioeconomic status, and more – shape the ways in which they contribute. It’s this diversity of thought that can be the key to groundbreaking ideas.
A 2023 McKinsey report revealed that companies in the top quartile for ethnic and gender diversity were 39% more likely to outperform their competitors financially. In fact, businesses that create a culture of innovation by involving everyone – regardless of background – achieve 5.5 times more revenue growth than those that don’t.
To encourage diversity through ERGs, businesses can establish groups that represent various backgrounds – such as ethnicity, gender, or disability – that reflect the unique demographics of its workforce. After surveying employees to gauge interest, factoring insights from established ESGs into decision-making processes can help to inform company policies, products, and communications, strengthening diversity as a core business strength.
One example of this is the collaboration between members of Dow’s LGBTQ+ employee resource group (ERG) and Under Armour to co-design a Pride Collection. By connecting unique community perspectives with business needs, ERGs can impact product development, reputation, and market differentiation.
Equity: Ensuring fair access and opportunity
Equity ensures that all employees have fair access to opportunities, resources, and advancement. Simply hiring diverse talent isn’t enough; equity demands proactive steps to create a level playing field. Recognising and addressing structural inequalities is not only ethically right – but also a business advantage. When employees feel fairly treated and have equal opportunities for advancement, they are more engaged and productive. Research from Great Place to Work revealed that equitable workplaces experience half the turnover of their peers, with employees remaining engaged and loyal to organisations that treat them fairly.
ERGs can be instrumental in identifying inequalities that may go overlooked within the structure of the organisation. Businesses can encourage a focus on equity-led initiatives among ERGs that aim to assess gaps in representation or career advancement opportunities. For instance, ERGs can partner with HR teams to co-create development workshops surrounding empowerment and career growth, particularly for groups that have historically faced barriers to advancement.
A prime example of equity in action can be seen in tech organisation Cadence, which has implemented inclusion programmes for women. By giving women a seat at the table and actively involving them in decision-making, Cadence has not only attracted top female talent but also created a far more equitable and productive workplace.
Inclusion: Creating a culture of respect
Fostering an environment where every employee feels valued, respected, and supported goes beyond simply implementing diversity – it’s about actively celebrating it and ensuring that everyone has a voice. This lays the foundations for a positive, high trust culture where employees can bring their authentic selves to work.
Companies with inclusive cultures are better at retaining talent. Studies have shown that inclusion directly correlates to job satisfaction, engagement, and productivity. Great Place to Work found that employees who feel included are 1.8 times more likely to stay with their company and are 1.5 times more likely to stay if they believe management genuinely cares about them.
ERGs can act as drivers for workplace inclusion by empowering each group to safely discuss their experiences and any challenges they may face. Businesses that ensure these groups are provided the resources for open forums or listening sessions, and even lead awareness initiatives such as cultural heritage celebrations, reap the rewards of a truly inclusive culture. ERG-led panels and training sessions can also bridge understanding across teams, making inclusion a lived value within the workplace.
Belonging: A sense of connection
Belonging embodies the feeling of being part of a community; a sense that one is welcomed and valued for their contribution. It’s the foundation upon which all other DEIB principles are built. There are, of course, obvious benefits to fostering a sense of belonging in the workplace. According to the O.C Tanner 2023 Global Culture Report, 65% of UK employees admit they want to feel a strong sense of belonging at work, indicating that those who do so are more likely to remain at their organisation. If employers want to retain staff, they must aim to understand the experiences of all their employees and implement effective initiatives as a result.
ERGs are especially powerful when it comes to cultivating a sense of belonging. Encouraging ERGs to focus on creating shared spaces – whether physical or virtual – where members can connect regularly can foster team-wide interpersonal bonds, offering employees a platform to connect with others who share similar backgrounds, experiences or interests. These spaces can take the form of monthly meetups, online chat groups or team building activities, and are particularly pertinent for new hires of similar backgrounds, building a supportive network within the company.
Action over acronyms
While the importance of DEIB is widely acknowledged, true progress only occurs when companies take deliberate, meaningful action. At its core, DEIB should be integrated into the company’s DNA, informing every decision, from hiring practices to development opportunities. Leaders must be held accountable for progress, and their actions should be backed by data, not just goodwill.
When businesses implement Employee Research Groups, they open the door to a wealth of opportunities that turn DEIB values into everyday practices. And as a result, these groups serve as powerful drivers of innovation and talent development. Members are 40% more likely to feel proud of their company’s community impact, 30% more likely to have confidence in the leadership team, and 23% more likely to report feeling safe in the workplace. Companies that implement ERGs and prioritise DEIB create workplaces that are not only more inclusive and supportive but also more innovative, productive, and resilient – laying the foundations for long-term business success.
A veteran of 20+ years in the technology industry, Neil is an evangelist for driving business and people experience transformation using technology and culture. Through close collaboration with customers, research teams and partners across the supply chain, Neil develops and delivers content that bring stories of success to life – helping people and organizations understand how to achieve their greatest performance.
