6 Steps to Evaluate Your ERG in 2025
Disclaimer: This blog post is based on personal opinion as of the published date and is intended for informational purposes only. It does NOT constitute legal advice. Organizations facing questions about specific programs or potential liability should consult a qualified attorney to assess their circumstances.
In today’s fast-changing economic climate, workplace leaders are juggling innovation, competitiveness, and new legal requirements. The recent “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” executive order (issued in 2025) has turned up the heat on workplace DEI practices.
At the IGC, we firmly believe that nurturing a strong, workplace culture—with a focus on civic engagement—remains both crucial and entirely doable, even under these shifting regulations. For years, Employee Resource Groups (ERGs) have played a central role in connecting employees, developing leadership skills, and improving communities. But now, many companies are asking: Are ERGs still allowed?
The answer is still not clear. But, at IGC, we believe taking action now is critical. Below, we’ve included 6-step guide to ensure your ERG brings all people together, strengthens your organization, and makes a real impact in your community. This guidelines help protect today’s ERGs.
What Does the New Executive Order Say?
The new order directs federal agencies and the Department of Justice to identify and discourage any diversity programs involving unlawful discrimination or preferential treatment based on protected characteristics (e.g., race, color, sex, religion, or national origin). While the text focuses primarily on “illegal DEI discrimination and preferences,” its broader implications have left many organizations wondering whether they need to scale back or disband existing diversity initiatives.
Why ERGs Still Matter
Despite the headlines and uncertainty, Employee Resource Groups remain valuable—provided they are structured and managed in a way that does not give rise to claims of unlawful exclusion or discrimination. Here’s why ERGs are still worth preserving:
Community and Engagement: ERGs enable employees to connect with peers with similar experiences or interests. A sense of belonging can be a game-changer in boosting morale and retention.
Professional Development: Many ERGs facilitate leadership training, networking events, or mentoring programs that develop employees’ skills and confidence.
Business Insights: ERGs offer unique perspectives on customer needs, product development, and market positioning. This diversity of thought often translates into innovative solutions that propel a company forward.
The Potential Legal Pitfalls
Under traditional anti-discrimination laws (such as Title VII of the Civil Rights Act of 1964) and the new executive order, any program that grants special privileges or excludes employees based solely on a protected characteristic may draw scrutiny. In other words, while ERGs can gather people with shared interests or backgrounds, they must:
Avoid imposing membership restrictions that bar certain employees from joining.
Refrain from exclusive benefits (like training or scholarships) only certain demographic groups can receive.
Steer clear of hiring or promotion preferences tied to race, ethnicity, gender, or other protected characteristics.
6 Steps to Evaluate Your ERG
By taking a thoughtful, transparent approach, you can preserve the many benefits ERGs bring—employee engagement, cross-functional collaboration, and a stronger sense of community—while also mitigating risks in a changing regulatory landscape. We created a 6-step checklist to help protect your ERGs:
Open Membership to All Employees
Communicate Clear Goals
Ensure Equal Access to Resources and Opportunities
Reinforce Voluntary Participation
Plan for Oversight and Accountability
Build Transparent Process Around Data Collection
Below you can dive into each step in greater detail, including questions you should address and pitfalls to avoid.
Step 1
Open Membership to ALL Employees
Goal: Ensure all interested employees can participate in any ERG, regardless of demographic background or personal identity.
Key Questions
Does the ERG charter explicitly state that membership is open to all employees?
Are there any unwritten norms or practices that might discourage broader participation?
Warning Signs
Identity-based restrictions or implicit messaging that only certain employees “belong.”
Pressure from group members or leaders to limit membership.
Action Steps
Update ERG charters, mission statements, and promotional materials to emphasize inclusivity.
Train ERG leaders on welcoming allies or supporters who do not share the group’s primary identity or focus.
Step 2
Communicate Clear Goals
Goal: Ground ERGs in universal, unifying principles that align with the company’s broader mission, rather than offering exclusive preferences tied to certain identities. Ensure to position ERGs as platforms for community-building, professional development, and open dialogue—rather than exclusive clubs with special privileges.
Key Questions
Is the ERG’s mission centered on company values (e.g., respect, professional growth, collaboration)?
Do event descriptions or group communications suggest exclusivity or preferential treatment?
Are any benefits or perks contingent on identity-based membership instead of shared learning or development?
Warning Signs
Language implying that membership alone guarantees unique benefits, promotions, or other advantages.
Branding ERGs in ways that imply inherent entitlement or exclusivity.
Descriptions of the ERG that focus more on restricting participation than broadening engagement.
Action Steps
Review all ERG documentation (e.g., charters, event flyers, email announcements) to ensure messaging highlights shared goals and open dialogue.
Reiterate that the ERG’s purpose is to enhance overall workplace culture and professional development.
Provide guidelines to ERG leaders on how to frame objectives in a way that invites broader organizational involvement.
If there is uncertainty about a particular initiative’s legality or fairness, consult legal counsel proactively.
Step 3
Ensure Equal Access to Resources
Goal: Make sure all employees can participate in ERG-sponsored activities, events, and professional development programs.
Key Questions
Are training sessions, mentorship programs, and workshops publicly advertised to all employees?
Are any resources (funding, space, time off) allocated in a way that favors one ERG or certain members within an ERG?
Warning Signs
ERG-sponsored programs or perks offered only to individuals who share a specific demographic trait.
Lack of transparency about how employees can sign up for or benefit from ERG initiatives.
Action Steps
Centralize event announcements through company-wide communication channels.
Standardize the process for requesting or allocating resources (e.g., budget, meeting rooms) among different groups.
Step 4
Reinforce Voluntary Participation
Goal: Protect employees’ freedom to choose whether to join or support an ERG without facing professional repercussions.
Key Questions
Is membership in any ERG tied (explicitly or implicitly) to performance reviews, promotions, or leadership pathways?
Do managers or executives pressure team members to participate in certain ERGs?
Warning Signs
Perception that joining a particular ERG will curry favor with leadership or boost career prospects.
Mandatory membership for employees who fit a certain demographic.
Action Steps
Publicly reaffirm that participation in ERGs is optional and has no bearing on evaluation or advancement.
Encourage managers to respect individual decisions about whether and how employees engage with these groups.
Step 5
Plan for Oversight and Accountability
Goal: Establish clear guidelines and governance to ensure ERGs comply with both internal policies and external regulations.
Key Questions
Do ERGs receive periodic reviews by HR or a compliance officer?
Are there documented processes for how ERGs request funding, schedule events, or elect leaders?
Warning Signs
Groups operating without formal oversight or recordkeeping.
Budget requests that are not standardized or consistently documented.
Action Steps
Assign an HR or legal liaison to regularly audit ERG operations (e.g., budgets, events, communications).
Require each ERG to submit a simple annual plan or report highlighting activities, outcomes, and resource utilization.
Step 6
Build a Transparent Process Around Data Collection
Goal: Collect relevant metrics to gauge ERG impact, while avoiding the misuse of demographic data that could lead to quotas or unlawful “preferences.”
Key Questions
What information is being gathered about ERG participation (attendance, engagement, feedback)?
Are you inadvertently using demographic data to enforce quotas or exclusive membership criteria?
Warning Signs
Using attendance data primarily to track or pressure specific demographic groups.
Setting strict numerical targets for membership composition (“we need X% from group Y”).
Action Steps
Focus on measuring outcomes (e.g., engagement levels, event satisfaction, professional growth) rather than exact demographic make-up.
Share learnings across the organization while preserving employee privacy and avoiding the appearance of policing protected characteristics.
By applying these six steps, you can systematically evaluate each ERG in your organization. Remember: Maintaining an inclusive culture does not have to conflict with new requirements—as long as your ERGs are structured around workplace values, equal opportunity, and open participation. If in doubt, involve HR professionals and legal experts who can help you align these groups with evolving regulations and best practices.
Practical Guidance for Senior Leaders
Given the possibility of increased scrutiny on corporate DEI initiatives, CEOs and senior executives should:
Review All DEI Programs
Engage Legal and HR Early
Encourage Dialogue
The Path Forward
At IGCI, we understand how quickly compliance requirements can change. However, we encourage you not to lose sight of the tremendous benefits of inclusive and civic-minded internal communities. Employee Resource Groups—properly structured—remain a powerful engine for leadership growth, cross-departmental collaboration, and cultural transformation.
Let’s work together to build stronger organizations and a stronger America—one ERG at a time. Whether you’re recalibrating to meet the latest executive order or simply looking to deepen your community impact, IGCI is here to guide you every step of the way.
#EmployeeResourceGroups #ERG #CivicEngagement #WorkplaceCivicResponsibility