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August 07.2025
2 Minutes Read

Exploring the Quiet Retreat from Employee Resource Groups in Corporations

Sign reading 'Call for Nominations' held in natural outdoor setting.

Shifting Tides: The Unsung Crisis of Employee Resource Groups

In recent years, corporate America has witnessed a subtle yet significant retreat from employee resource groups (ERGs)—once heralded as cornerstone elements in promoting inclusion and diversity. This shift raises pressing questions about the future of workplace culture as legal ambiguities surrounding diversity initiatives come to the fore.

The Role of Employee Resource Groups

Historically, ERGs have served as vital networks, providing employees with platforms for support, cultural understanding, and professional growth. Founded by Ted Childs at IBM, the model paved the way for similar structures across numerous industries—ensuring that employees could connect based on shared identities, ranging from race to gender. ERGs excelled at enabling managers to listen and adapt, thereby strengthening workplace cohesion.

Legal Uncertainties Leading to Downsizing

However, recent federal executive orders addressing race-conscious programming have cast a shadow of uncertainty over ERGs. What was once a proactive approach to foster inclusivity is now viewed by some corporations as a legal risk, leading to budget cuts and the disbanding of these groups. Experts warn that this retreat may not only diminish morale but also compromise institutional knowledge—a resource that helped preempt potential conflicts.

The Consequences of Erosion

As ERGs wane, old hierarchies are re-emerging, favoring informal networks that often exclude marginalized voices from key conversations. This trend risks cultivating an environment where advancement relies more on who you know than on merit. Critics argue that the downsizing of ERGs signals a troubling message: that inclusion isn’t a fundamental value but a negotiable possibility.

Looking Ahead: What's Next for Inclusion in Corporate America?

In a landscape shifting towards exclusion, the challenge remains for organizations to navigate the complexities of diversity initiatives while complying with legal boundaries. Revitalizing ERGs may not only be a proactive step toward inclusivity but also a strategic move to enhance employee retention and satisfaction. Maintaining these networks could ultimately empower organizations to retain a competitive edge, fostering an environment that values diverse voices and perspectives.

As corporate America grapples with these changes, the future of ERGs hangs in the balance. Organizations must reconsider their approaches to inclusion, ensuring that the lessons learned from the past guide their path forward.

Leadership & Strategy

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08.06.2025

How Valvoline Develops a Diverse Workforce Through Empowerment and Inclusion

Update Valvoline’s Commitment to Diversity and Inclusion Valvoline Inc. has made impressive strides in fostering a diverse workforce that genuinely reflects its core values. With over 11,000 employees, the automotive giant showcased its dedication to leadership diversity in its 2024 Impact Report, highlighting that a remarkable 57% of its executive officers are women, including its President and CEO. Such representation illustrates more than numbers—it’s about creating an inclusive environment where every voice matters. Amberlynn Holder, a Franchise Business Consultant and member of the company's women’s Employee Resource Group, POWER, emphasizes this sentiment, stating, "Through POWER, we collaborate to amplify voices, create supportive spaces, and champion an environment where everyone can develop meaningful skills that contribute to a more inclusive and forward-thinking industry." Empowering Employees Through Development Opportunities Valvoline’s foundation is built on a culture that promotes from within, enhancing its strategy through structured training programs. In fiscal year 2024, a significant number of managerial openings were filled by team members who had initially joined in hourly roles. This showcases Valvoline's unique approach to talent development, where structured training not only prepares employees for advancement but also ensures that their knowledge aligns seamlessly with the company’s evolving needs. The company offers an impressive 270 hours of onboarding training in the initial 60 days, followed by an additional 240 hours for those on a path to promotion. Employee Resource Groups: Building Community Valvoline’s dedication to inclusion is reflected in its five active Employee Resource Groups (ERGs), which include POWER (Women’s ERG), PRIDE (LGBTQIA+), Veterans, AABERG (African-American/Black ERG), and La Vamilia (a Latino-Hispanic ERG launched in FY24). These ERGs not only enhance a sense of belonging among employees but also bind individuals with shared experiences, empowering them to lift each other up. With 44% of its Board of Directors being women and a versatile workforce that comprises 15% Black or African American and 11% Hispanic or Latino employees, Valvoline stands as a pillar of diversity in the corporate landscape. Holistic Employee Well-being Valvoline understands that fostering a diverse and inclusive workforce goes beyond just representation; it extends to employee well-being. The company has implemented robust programs to ensure that employee wellness is prioritized. Through the Life Navigator program, employees can access resources to address various challenges—be it physical, emotional, or financial. Furthermore, the Be Well platform provides 24/7 well-being resources, encapsulating Valvoline’s commitment to holistic employee care. The Bigger Picture: Valvoline's Community Impact Valvoline’s initiatives not only enhance workplace diversity but also create a ripple effect in the communities where they operate. By emphasizing inclusive hiring practices that feature mobile-friendly applications and engaging storytelling videos, the company taps into a broader pool of talent. Their partnerships with organizations like Jobs for America’s Graduates and RecruitMilitary further help bridge gaps, providing opportunities for underrepresented demographics. The essence of these efforts is not just about filling positions; it’s about nurturing a community that values every individual’s contribution. Looking Forward: Sustaining Progress and Growth Valvoline's journey highlights a powerful example for other organizations striving to increase diversity and promote inclusive work cultures. The measured and intentional steps Valvoline has taken are not only commendable but, more importantly, necessary in today's world. As they look towards the future, Valvoline aims to sustain this momentum and continue making strides toward inclusivity, empowerment, and growth.

07.17.2025

Unlocking Potential: Building Successful Interfaith ERGs in the Workplace

Learn about building successful Interfaith ERGs in the workplace and how they enhance engagement and diversity.

06.30.2025

McKesson’s UNITY ERG: A Beacon for Native American Heritage Awareness

Learn how McKesson's UNITY ERG celebrates Native American heritage, emphasizing diversity, inclusion, and community empowerment.

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