ABC's of ERGs - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 11, 2016 Newswires
Share
Share
Post
Email

ABC’s of ERGs

NJBIZ

Employee Resource Groups are key to understanding (and correcting) the diversity needs in your office

Simply hiring a diverse workforce may not be enough, especially for larger companies, experts say.

That's why employee support and education groups are increasingly part of company operations, especially at the biggest employers.

Whether it's a large pharmaceutical company such as Bayer Corp. in the Whippany section of Hanover, a hospital such as AtlantiCare Regional Medical Center in Egg Harbor Township, or even a small insurance company, such as Health Republic of New Jersey in Newark.

Nilda Mahrer manager, human resources programs and diversity at AtlantiCare, explains tire process.

AtlantiCare has had a diversity program since 2010. More than that, it has eight different employee resource groups, or ERGs, that help support and educate staff. These ERGs allow diversity employees to not only discuss diversity needs within their own group, but also to present them as a group, demonstrating that they are a workplace issue, not just the feelings of one individual employee.

"There is increased enthusiasm for ERGs on a national level," Mahrer said. "Organizations have realized the business value and impact on organizational outcomes - such as high employee engagement levels and customer experiences.

"Enhancing care and the workplace environment by being more culturally competent is the right thing to do. Our ERGs have evolved into valuable business partners. They have become the go-to groups to assist with employee engagement efforts, community outreach and customer experience initiatives."

The eight groups include support for: AfricanAmericans, the Asian-Pacific community, Latinos, disabled individuals, militan', interfaith knowledge, LGBTQ community and women.

Bayer also has employee resource groups, each of which has an executive as the point of contact to help with communicating needs quicker through the chain of command.

The groups cover different ethnic minorities, veterans and l.GBTQ employees.

Une of the most recent changes to come out of Bayer's ERGs was coverage of gender-affirming surgery in health benefits.

Ryan McDay, head of diversity and inclusion for Bayer in the U.S., said his experience with diversity' efforts at other companies has proven tiiat creating ERGs is a smart decision.

"When you create an environment where employees feel engaged and supportive, employees feel they can be who they are and are in a position to increase productivity," McDay said, "it strengtiiens employee loyalty. It builds the brand and positions you as one of the more favorable companies."

Hating the groups makes you a more attractive employer, lie said.

He likened it to the Olympics. If all the talent was being scouted in only California, that limits the pool of talent, rather than making a concerted effort to tap all 50 states.

"Diversity is a win-win, not a downside," McDay said. "Companies that put forth greater commitment increase market share and ROI for shareholder return."

And the term diversity doesn't just stop at the people, McDay said.

"Through technology', we are much more connected than ever before," he said. "You, as an organization, want to take advantage of that opportunity and grow your business and company - that's diversity and inclusion.

"1 find it's not just corporations with a concentrated effort (on diversity)."

It's becoming an area that nonprofits, universities and government entities also recognize that needs to have support, McDay said.

But not everyone has figured out the right formula to succeed.

Take, for example, Yana Pomerants, a young Russian woman who worked at an education consultancy. The small nonprofit in the greater Washington, D.C., area had an employee pool of about 10 and has only two affinity groups: women of color and diose who identified as white.

Pomerants was uncomfortable by the sudden classification of employees in the office and tried to ask if she could avoid participating. She noticed that there were only four employees who were white and the remainder were from every' other continent on the planet.

"I felt very insulted because (my boss) said we do that so we can discuss issues pertaining to our affinity group and that it wouldn't be fun to talk to yourself," Pomerants said.

Though Pomerants, a 30-year-old Russian woman, has fair skin and dark hair, she felt more comfortable in the women of color group than the white group, to the surprise of both the owner, a white American woman, and her manager, a Puerto Rican woman.

"My boss is Puerto Rican, (and) she asked me, 'Oh, so you are staying with the colored group?' It was so bizarre," Pomerants said. She was later asked again by the owner about choosing the white group instead.

"I thought about it a lot after that. What if there w'as a Muslim woman who was technically white, she could be European, but she wears a headscarf?" Pomerants said.

Coming into the office the next day, Pomerants noticed herself looking at everyone based on the group they belonged to, rather than one big office group, as she had prior to the meeting.

McDay said that while there is no right or wrong formula to create the groups, companies should take care to ensure the purposes of the groups are being achieved.

"If leadership is not behind it, if the company does not have individuals to help or facilitate concerns" the efforts could be moot, he said.

AtlantiCare, for example, has to accommodate hospital shifts to ensure everyone has access.

"As a 24/7 organization, we have various shifts. Some employees are unable to participate as much as they would desire due to tire variances in schedules," Mainer said. "However, over the years we have mitigated those challenges by offering different ways to participate in meetings and activities."

On the plus side, because it is a growing focus area, and some companies have been doing it for years, there are now consultants and companies that can help guide an inexperienced company or group, McDay said.

"The reality is, employees have a voice and have an opportunity to express their interests or support a particular organization," he said. "We want to be as progressive as possible."

"Diversity is a win-win. Not a downside." Ryan McDay, head of diversity and inclusion, Bayer Corp., U.S.

Health Republic Insurance of New Jersey's diverse staff. From left, Juan Rodriguez from Dominican Republic, Teresa Reusch from Phillipines, Femi Odedina from Nigeria, Mariana Giraudo from Argentina, and Finnbar Power from Ireland, -aaron Houston

Study: Forcing diversity has negative outcome

When businesses focus on diversity and inclusion, it's a good thing, right? Not always. Says who? Harvard University.

A Harvard study recently highlighted the internal struggles businesses often face when diversity is too forced upon the workplace Training, the study found, often does not alleviate bias.

"Firms have long relied on diversity training to reduce bias on the job, hiring tests and performance ratings to limit it in recruitment and promotions, and grievance systems to give employees a way to challenge managers," the report said. "Those tools are designed to preempt lawsuits by policing managers' thoughts and actions. Yet laboratory studies show that this kind of force-feeding can activate bias rather than stamp it out. As social scientists have found, people often rebel against rules to assert their autonomy. Try to coerce me to do X, Y or Z, and I'll do the opposite just to prove that I'm my own person.''

The study analyzed three decades' worth of data from more than 800 U.S. firms and concluded that rather than having trainings, simply engaging more with the employees - especially women and minorities - was a more useful tactic.

The training is a one-time thing, so the effects also reflect temporarily before an individual can forget what he or she learned, the report said.

"One reason is that three-quarters use negative messages in their training. By headlining the legal case for diversity and trotting out stories of huge settlements, they issue an implied threat: 'Discriminate, and the company will pay the price,' " according to the study.

Instead, the study suggests having a task force or a different way of engaging a diverse workforce - and even targeting minorities to recruit out of college.

"Five years after a company implements a college recruitment program targeting female employees, the share of white women, black women, Hispanic women, and Asian-American women in its management rises by about 10 percent, on average," the study said. "A program focused on minority recruitment increases the proportion of black male managers by 8 percent and black female managers by 9 percent."

E-mail to: [email protected]

On Twitter: @anjkhem

Older

Great American Life Launches Fee-Based FIA

Newer

Patient Protection and Affordable Care Act; HHS Notice of Benefit and Payment Parameters for 2017; Corrections

Advisor News

  • The overlooked retirement security risk that must be addressed
  • What advisors should know about hedge funds in retirement planning
  • Retirement control is top success measure for middle class, ACLI says
  • Industry groups applaud House passage of Financial Exploitation Prevention Act
  • Younger workers more likely to be eligible for a retirement plan after changing jobs
More Advisor News

Annuity News

  • Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
  • Why job boards are failing insurance agencies
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
  • What’s fueling record annuity growth?
  • Jackson Named InvestmentNews 2026 Annuities Provider of the Year
More Annuity News

Health/Employee Benefits News

  • Reports from Capital One AG Describe Recent Advances in Managed Care (Factors Affecting Medical Appointment Adherence among Adolescents and Young Adults with Kidney Disease: A Longitudinal Cohort Study): Managed Care
  • Studies from University of Alabama Further Understanding of Neurology (Understanding stroke caregiving in rural contexts: a qualitative study of family caregivers’ cultural values, coping behaviors, and technology use): Health and Medicine – Neurology
  • New state law will create more transparency of dental insurance benefits
  • Rob Sand pledges to reverse Iowa Medicaid privatization
  • Millions drop ACA coverage amid price jump
More Health/Employee Benefits News

Life Insurance News

  • NAIFA praises House committee approval of Clarity for Compensation Act
  • PHL Variable liquidation pushed out to 2027, Connecticut regulators say
  • ‘Recession-Proof’ Insurance Is Trending. Safety Net or Scam?
  • Winged Keel Group Expands National Presence and PPLI Leadership, Welcomes SBSI, Inc. (dba NFP Insurance Solutions)
  • MassMutual Ranks No. 100 on the 2026 Fortune 500® List
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

A MYGA for Clients Hesitant to Commit to One Long-Term Rate
First-year certainty. Annual rate updates. Get the CurrentRate® MYGA Sales Kit.

Elite Networking & Insights Await at the Event of the Year
The industry's premier conference for leaders driving what’s next in financial services.

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet