Employee resource groups (ERGs) are within-organization groups, staffed by employee volunteers, which have evolved since their inception in the 1960s. Originally called affinity groups, they began when racial tensions escalated in the United States and businesses utilized them to help achieve diversity and inclusion goals. Recently, their purpose has transformed to include organizational challenges such as leadership development, innovation, and change management, which should translate to significant research from the academic community. However, to date, very little is known about ERGs, and there is a dearth of studies, either conceptual or empirical, on these groups and their impact on the firm. In this paper we provide an introduction to ERGs, review the literature that exists to date, and provide ideas for a research agenda. We hope that this work spurs additional research on a critical topic for today's businesses.
Research has provided compelling evidence that employee referrals result in positive outcomes for organizations and job seekers, but it has been limited on how organizations can increase the likelihood of obtaining employee referrals. Using the theoretical lens of social exchange theory and tenets from expectancy theory, we tested two common assumptions of most employers: A referral bonus motivates employees to refer, and higher bonus amounts incite greater likelihood of referring. We theoretically developed and tested a model integrating the effects of perceived risk in referring and affective commitment and their interactions with the referral bonus to better explain the likelihood of referring. Results largely supported our predictions. Referral bonus presence, referral bonus amount, and affective commitment digitalcommons.unl.edu P i e p e r e t a l . i n H u m a n R e s o u r c e M a n a g e m e n t ( 2 0 1 7 ) 2 positively related to likelihood of referring, while perceived risk in referring negatively related to likelihood of referring. The findings also suggest that larger referral bonuses can help offset perceived risk in referring and low affective commitment levels. We contribute to the literature by developing theory, expanding the scope of the current referral literature, and offering a quantitative examination of previously theorized variables in the referring process. We conclude with suggestions to practicing managers on ways to improve the motivating potential of their employee referral programs.
Purpose
The purpose of this paper is to demonstrate that employee resource groups (ERGs) are a valuable addition to organizations and should be an important focus of research, particularly given the diversity and inclusion challenges faced by many businesses and communities today.
Design/methodology/approach
The authors review the ERG literature, develop a theoretical framework using social identity theory (SIT) and suggest research directions.
Findings
ERGs represent a fairly unexplored area of research. Using SIT, a series of propositions is presented for research into ERG effects on individual, group and organizational outcomes.
Research limitations/implications
ERGs have impact beyond the topics explored using SIT. As ERGs become more prominent, there is ample room to conduct empirical research to learn more about the underlying process by which ERGs are affecting identity and employee integration (or lack of) into groups and organizations.
Originality/value
Despite their prevalence in the business world, there has been a scarce amount of theorizing and research focused on ERGs. To help facilitate the development of this work, the authors introduce a theoretical framework using SIT, as well as propositions that can serve to spur additional research on a critical topic for today’s businesses.
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