Pay equity is an umbrella term that includes issues related to the fairness of compensation paid by employers to their employees for performing comparable work, without regard to gender or race/ethnicity or other categories protected by law (such as national origin or sexual orientation).
There has historically been a pay gap between male and female employees, something that companies have grappled with for some time.
Lack of progress has recently led to the introduction of various pay equity laws on a national, state, and local level.
These laws and regulations are twofold:
As companies take steps to comply with these laws and to proactively audit and address any inequities in their organizations, employees can serve as important allies in the process through participation in employee resource groups (ERGs) and, to a lesser degree, business resources groups (BRGs).
While the terms “employee resource groups” and “business resource groups” are often used interchangeably, there is an important distinction to be made.
Employee resource groups (ERGs), also called affinity groups, ERGs, according to SHRM, are “employee groups that come together either voluntarily, based on a common interest or background, or at the request of a company.” The first ERG in the US was the Xerox National Black Employees Caucus, created in 1970.
Business resource groups (BRGs), which are less common, are formed with a specific business purpose in mind-such as tackling issues of pay inequity within an organization. While they may still provide support and community for their members, BRGs are focused on driving business objectives and contributing to organizational strategic goals. BRGs often bring together employees who have a shared interest or affiliation related to a specific business dimension, such as equitable pay practices for women.
The key differences between ERGs and BRGs are:
Focus. ERGs primarily focus on fostering a sense of belonging, employee support, and addressing issues related to workplace equity. BRGs, on the other hand, have a more business-centric focus, aligning their efforts to specific business objectives and outcomes.
Membership. ERGs typically represent specific demographic or identity groups, aiming to create a space for employees with shared characteristics. BRGs, on the other hand, can have broader membership that may include employees from different backgrounds who have a common business interest or goal.
Goals. ERGs often concentrate on cultural awareness, education, mentoring, and advocacy for underrepresented groups within the organization. BRGs are more likely to focus on market research, innovation, talent development, and improving business performance in relation to their specific area of focus.
Alignment. ERGs are closely aligned with workplace equity initiatives, with the goal of creating a more equitable and inclusive workplace. BRGs, while also supporting workplace equity efforts, contribute directly to the organization’s success.
It’s important to note that the terminology and definitions related to ERGs and BRGs can vary across organizations, and some organizations may use the terms interchangeably. The specific roles and functions of these groups may also evolve based on the organization’s unique needs and goals, and the demographics of their workforce and market.
Because BRGs are still less common, here we will focus on ERGs. The best practices and steps involved in implementing and leveraging the value of ERGs can readily be applied to BRGs in those organizations that are beginning to shift in this direction.
ERGs can play an important role in achieving pay equity for women by providing a platform for employees to come together, support one another, and advocate for positive change. The goal of these groups is to go beyond being social clubs to become influential voices that impact business decisions.
Some of the key ways that ERGs can help to achieve pay equity for women include:
To maximize the opportunity to achieve pay equity through ERGs, there are a number of best practices that companies should follow.
Some companies are more effective than others when seeking to improve pay equity for women through their ERGs. Some important best practices to consider when launching or improving your own ERGs include:
Finally, here are some important points to keep in mind when considering how your organization might leverage the power of ERGs to drive pay equity for women.
While the terminology and definitions related to ERGs may vary across organizations, the role these groups can play in helping to drive pay equity for women can be significant. By following best practice advice and avoiding common do’s and don’ts you can ensure that your organization effectively leverages the significant value these groups can hold for gaining and maintaining pay equity for women.
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