Employee-resource groups, also known as affinity groups or employee networks, are company-sponsored employee groups from traditionally underrepresented groups or those that support these groups.

Ten years ago, employee-resource groups were unusual. While a handful of the most progressive companies had started them, mainly for women and Black employees, they primarily were used as social-networking groups where workers from similar groups chatted and griped. If they had any business-related function, it was to set up cultural events, such as Black History Month displays or Asian-cuisine days.

The unleashed potential of these groups is the real story of how diversity management has become a crucial asset to corporations, a vital part of realizing business goals. They are used for diversity recruitment, retention, diversity in management, talent development, and to reach customers and clients in the community, as well as supplier diversity.

When the first DiversityInc Top 50 Companies for Diversity^® survey was held, only 22 percent of companies reported having these groups, and these were companies self-identifying as diversity leaders. Five years ago, that number was up to 65 percent. This year, all of the DiversityInc Top 50 have employee-resource groups.

What types of groups are popular? Although most companies start with Black and women's groups, followed by Latino and Asian groups, increasingly, companies are starting groups for LGBT employees, employees with disabilities, religious groups, generational groups and veterans' groups. And all of these diversity groups are inclusive, so anyone can join.

What Best Practices Do Top Employee-Resource Groups Have?

Company support for these groups is critical so they are perceived as part of the organization, not a splinter group. All of the DiversityInc Top 50 now fund their employee-resource groups. Five years ago, that percentage was only 62 percent. Also, all of the DiversityInc Top 50 allow their resource groups to meet during the workday. Five years ago, that percentage was 73 percent.

Senior-executive commitment ties the work of the group directly to the business goals of the company. Seventy-four percent of DiversityInc Top 50 CEOs now meet regularly with employee-resource groups. Five years ago, that was only 17 percent. Not only is this important because the CEO is exposed to new ideas but it also allows people who might never otherwise have the chance to present directly to the CEO. At Diversity Top 50 companies, 92 percent of the groups have a senior executive as a member, usually a direct report to the CEO. That compares with 53 percent five years ago.

Groups are used for diversity recruitment increasingly. Having LGBT employees at a job fair, for example, sends a strong message to prospective recruits that this is an inclusive culture. All of the DiversityInc Top 50 now use their employee-resource groups in their diversity-recruitment efforts, compared with 75 percent five years ago.

Groups are used to market to traditionally underrepresented communities. Ninety-six percent of the DiversityInc Top 50 now use these groups to help with marketing efforts to their communities, compared with only 31 percent five years ago.