DEI Is Under Siege, but ERGs Have Largely Survived

Key Takeaways

• Only 11 of 52 firms altered ERG structures.
• ERGs budgets largely unchanged despite DEI rollbacks.
• Leadership turnover erodes ERG program confidence.
• Shifting ERGs to HR/engagement raises visibility concerns.

Summary

After the 2024 election, many firms rolled back DEI programs and the Justice Department warned against employee resource groups. An HR Brew analysis of 52 companies found only 11 altered their ERG structures, with most keeping budgets intact. Practitioners report leadership turnover and a shift of ERGs from DEI to HR or employee‑engagement functions, creating uncertainty about future support. Experts stress that HR must define purpose, process and programming to keep ERGs effective.

Pulse Analysis

The post‑2024 political climate has prompted a wave of DEI rollbacks, with the Justice Department’s recent guidance cautioning employers about employee resource groups. While many organizations have dismantled diversity training or rebranded initiatives, the core function of ERGs has proved more resilient. Data from HR Brew’s 2024‑2025 tracker shows that only a small minority of companies—11 out of 52—made substantive changes to their ERG programs, suggesting that the groups are viewed as distinct from broader DEI mandates and therefore less vulnerable to policy swings.

A deeper look reveals why ERGs have largely survived. Budgets for most groups have remained steady, and many firms have repositioned ERGs under HR or employee‑engagement umbrellas rather than DEI departments. This strategic relocation helps sidestep regulatory scrutiny while preserving the perceived business value of ERGs. However, the transition is not without friction: frequent changes in program leadership have left ERG chairs without consistent guidance, eroding confidence and threatening program continuity. Scholars like Harvard Business School’s Lumumba Seegars note that this uncertainty can manifest as reduced visibility or funding, prompting ERG members to question the organization’s long‑term commitment.

To safeguard ERGs, experts recommend a three‑P framework: purpose, process, and programming. Clear articulation of an ERG’s mission ties its activities to measurable business outcomes, making it easier for executives to justify continued investment. Formal handbooks and structured processes ensure consistency despite personnel shifts, while robust programming—beyond Slack channels—includes leadership training and cross‑group collaboration. When ERGs are positioned as employee‑engagement assets rather than purely DEI tools, they not only survive regulatory headwinds but also deliver tangible ROI through higher retention, engagement, and performance. Companies that adopt this disciplined approach are likely to maintain inclusive cultures and reap the associated competitive advantages.