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Judy Martinez-Faye Vice-Chair. | Chicagoland Chamber of Commerce

Cooley leader discusses benefits of employee resource groups amid shifting diversity landscape

Steve Flores sees the LatinX affinity group at his global law firm as a win-win: it not only empowers participating employees but also strengthens the firm as a whole.

“Our group helps people connect because it creates a space for people to get to know each other. It benefits them, and it benefits the entire organization,” said Flores, who co-chairs the group and focuses on executive compensation and employee benefits matters at Cooley. “It creates a really valuable sense of community in the professional space.”

Flores’s group is especially relevant with Hispanic Heritage Month starting on Sept. 15, as he believes it’s important for Hispanics to have this type of support in today’s workforce.

“My goal is fundamental fairness — I want to make sure that everybody’s getting an equal opportunity and equal shot to advance their career and to make it within the organization,” said Flores, who also serves as board chair for the Chicago Committee on Minorities in Large Law Firms. “For me, throughout my career, having that resource of people who have been through it has been incredibly valuable.”

Studies have found membership in affinity groups, employee resource groups (ERGs), and business resource groups (BRGs) has been high over the years — 90% of Fortune 500 companies have ERGs, for instance. These groups can produce positive results for workers, which is — as Flores noted — positive for the company. Higher levels of employee group participation led to a 56% increase in job performance, a 50% decrease in turnover, and a 75% reduction in sick days.

Despite these positive effects, Flores says he has witnessed backlash after recent court cases about diversity efforts, such as the 2023 Supreme Court ruling against race-based college admission decisions.

“I’ve seen in the news many large public companies scrapping their commitment to DEI, so I am definitely concerned about it,” Flores said. “Many law firms are still committed to maintaining affinity groups, but we’ve also seen some of the scholarship programs that benefit minority students attacked in court. As a result, many firms are changing their programs in reaction to that type of litigation.”

With that movement in mind, Flores said affinity groups, ERGs, and BRGs are going to be even more important in helping create diversity in tomorrow’s workforce.

“Given the Supreme Court decision, we think the pipeline is going to get smaller for minority groups, so it’s going to be even more difficult to have a well-represented workforce — at least at large law firms. And that’s exactly what we’re focused on with our work on the Chicago Committee,” Flores said.

Employee groups play a crucial role in fostering diversity, inclusion, and engagement within organizations. While they share some similarities, Affinity Groups (AGs), Employee Resource Groups (ERGs), and Business Resource Groups (BRGs) each have distinct characteristics and purposes:

- AGs are informal and voluntary based on shared interests or characteristics with an emphasis on social networking and professional development but may lack official company support.

- ERGs are formally recognized by organizations often focusing on specific demographics; they typically receive company resources and support combining social aspects with professional development.

- BRGs are strategically aligned with business objectives often having executive sponsorship; they emphasize market insights and business opportunities.

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