How ERGs Became the Engine of Change – And How Yours Can Make a Difference

Employee Resource Groups (known as ERGs, but can also be called Business Resource Groups (BRGs), Employee Networks, Diversity Groups, Colleague Resource Groups (CRGs)) are now widely recognised as catalysts for culture change, retention and belonging.

But this was not always the case.

Long before companies had DEI functions or inclusion strategies, ERGs emerged from something much more human: the need for dignity, safety and voice at work.

Their history is not just corporate - it is social, political and deeply emotional. And understanding that history matters, especially for ERG leaders in the UK who are inheriting a movement more than 50 years in the making.

ERGs engine of change

1968 - Xerox and the Birth of ERGs

The modern ERG movement began in the United States. In 1968, following the assassination of Dr. Martin Luther King Jr., racial tensions surged across the country. Inside Xerox, Black employees organised the National Black Employees Caucus, the first recognised ERG.

What makes this founding moment remarkable is not the group itself, but the response. CEO Joseph Wilson listened. He recognised that employee voices were not complaints - they were insights. They influenced recruitment, advancement and community engagement strategies long before “DEI” entered the corporate lexicon.

This was the first time a company acknowledged that those most impacted by inequality were best positioned to help solve it.

The UK Story: A Parallel Evolution

Although ERGs emerged first in the U.S., the UK’s journey toward employee-led inclusion grew out of its own social and legislative milestones.

1970s - Legislative foundations and union-led advocacy

The Equal Pay Act (1970) and Sex Discrimination Act (1975) laid critical groundwork for workplace equality. Within trade unions, identity-based committees women’s groups, Black workers’ groups began advocating for fair treatment. These weren’t formal ERGs, but they were the ancestors: employee-led, justice-driven and structurally marginal.

1980s - Early networks and LGBTQ+ activism in adversity

Race relations legislation and increasing public conversation about discrimination prompted early race and culture forums in public services.

LGBTQ+ groups began forming quietly within workplaces, particularly in the arts, academia, and civil service. But Section 28 (1988) created a chilling effect, making visibility risky. Those who organised did so with courage, not corporate sponsorship.

1990s - Formal ERGs arrive through multinationals

As global companies expanded into the UK, so did their diversity infrastructures. Women’s networks, ethnic minority groups, disability forums, and LGBTQ+ networks became more common in banking, telecoms, and professional services.

The Disability Discrimination Act (1995) legitimised disability networks, transforming advocacy into structured employee voice.

This decade marks the official arrival of ERGs in UK corporate life.

2000s - ERGs Gain Strategic Importance (US and UK)

The early 2000s saw rapid expansion.

In the US, research (including findings from SHRM, Source 1) confirmed that ERGs improve engagement, retention, and inclusion.

In the UK, the Equality Act (2006) and the rise of organisations like Stonewall and Business in the Community’s Race for Opportunity accelerated the growth of corporate networks.

ERGs evolved from affinity groups into recognised organisational partners. Companies began offering budgets, leadership sponsors and governance models.

Crucially, ERGs started influencing:

  • recruitment strategies
  • career progression
  • inclusive benefits
  • internal culture and communications

This is when passion started turning into power.

2010s - ERGs Become the Architects of Culture

With global DEI functions maturing, ERGs started shaping policy, wellbeing and leadership development.

In the UK, two moments stand out:

Equality Act 2010

This landmark legislation consolidated protections and influenced how organisations approached inclusion. ERGs became tools for ensuring lived experience was represented in policy decisions.

NHS Workforce Race Equality Standard (2015)

The NHS transformed staff networks into mechanisms for accountability. This was groundbreaking: ERGs were no longer advisory, they were evaluative and influencing national standards.

Across industries, UK ERGs became more intersectional, more strategic, and more visible.

2020-Present - ERGs as Anchors in Crisis and Change

The pandemic, racial justice movements, mental health challenges, global conflict, and economic instability thrust ERGs into new territory.

Suddenly, organisations needed:

  • cultural navigators
  • community builders
  • trust brokers
  • wellbeing advocates
  • advisors on how external events impact internal culture

ERG leaders provided perspective during extraordinary uncertainty. Their work became both emotional and organisationally essential.

Today, ERGs influence:

  • hybrid working policies
  • mental health and wellbeing frameworks
  • inclusive design and accessibility
  • pay equity reviews
  • AI and ethics conversations

They are no longer side projects. They are engines of cultural intelligence.

Why This History Matters for ERG Leaders Today

If you lead or support an ERG in the UK today, you are part of a lineage stretching from Xerox in 1968 to trade union caucuses, to quiet LGBTQ+ gatherings under Section 28, to the networks that influenced equality legislation.

ERG work has always been:

  • emotional before strategic
  • grassroots before formalised
  • courageous before recognised

And now, more than ever, ERGs are essential to organisational resilience, reputation, and retention.

But for ERGs to deliver real change, they must evolve with intention. Passion is the spark. Structure is the engine.

If you want your ERG to evolve from passion to power…

Join us at the ERG Blueprint Conference.

Learn the systems, strategies, governance models, and leadership tools that turn ERGs into engines of long-term, measurable cultural change.

Buy your ticket today and take the next step toward building an ERG that changes culture for good.