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Employee networks exist and flourish at many corporations.  This article provides advice on how to embrace and manage these groups so they help resolve diversity issues and add business value.

Employee network groups flourish at many corporations, adding business value and benefitting the employees who participate in them. But some diversity specialists see the formation of employee networks as a potential danger and caution that the groups, which are usually based on race, ethnicity, gender, sexual orientation, age or physical ability; can foster divisiveness and generate conflict.

However, if employee network groups are well-managed, they can provide leadership for resolving diversity issues instead of leading to separatism, as well as contribute to employees' professional development and the bottom line.

Because HR professionals often make decisions about the validity of a network group's existence, HR needs to recognize the responsibility that comes with its decision-making power, says Gini McCain, director of HR communications at 3M Corp. Above all, she adds, HR professionals must recognize their employees' need for community or desire to identify with specific core issues. For example, 3M provides a lot of support for network groups. "We know that our employees have unique needs and issues and that we are not just one culture," McCain explains.

A Grassroots Support Movement
Employees form groups because they feel they lack support from the organization and need to support and coach each other, says Muriel Lazar, managing director of the diversity practice for Coopers & Lybrand of Chicago. The business environment may not yet be inclusive enough to make these workers comfortable.

Sometimes the impetus for an employee network comes from management, but the groups that last, and succeed in carrying out their purpose, are usually formed by employees with common interests.

"Individuals come to us to form a network," says Richard Gaskins, vice president of the Diversity Resource Center at American Express Financial Advisors (AEFA). "They are grassroots organizations; the company doesn't try to create networks or solicit membership in networks, " he explains.

Check Your Responses
Organizations that react to employee network groups by saying, "We' re all employees, we don't need this" are really saying, "I'm threatened by this and see it as a criticism," says Lazar. "An organization has to get beyond that," she says. "If we give in to that fear, the issue doesn't go away, it just goes under the table."

David Barclay of Hughes Electron-ics agrees. "If employees get to the point where they're angry or have issues, don't think they're not getting together somewhere," says Barclay, vice president of workforce diversity for the Los Angeles company. "I'd rather have them coming together in the company and letting us know their feelings."

Some managers fear that employee networks will become grievance sessions of minority employees. But network groups typically have a positive mission, not a negative one, says diversity consultant R. Roosevelt Thomas Jr., CEO of R. Thomas and Associates in Decatur, Ga. Some groups "may start off as aggressive and assertive, but I've never seen one that declares, `We're trying to undo the organization,'" he says.

Terrence Simmons, diversity consultant and president of Simmons Associates in New Hope, Pa., cautions that by allowing employee groups to form, "you do run the risk of polarization." But he points out that "on the other hand, it's very easy to partner with these groups once you' ve identified a positive goal for diversity within the company."

Networks as Innovative Business Tools
Employee groups contribute to business success by attracting clients and new employees from diverse backgrounds, creating a good work environment for all employees, and helping the company deliver on its commitment to diversity, says AEFA's Gaskins.

At 3M, employee network groups and diversity councils serve as advisers to business units, says McCain. For example, the company's network for employees with disabilities serves as a resource to the product development divisions.

AT&T's groups have helped the company in its recruitment and retention efforts, says Chip Egea, director of human resources for AT&T corporate headquarters. AT&T groups have built sophisticated resume databases that help the company with its nontraditional recruiting efforts. Some groups have also provided a strong community influence through the adopt-a-school, scholarship and mentoring programs.

Honeywell recently signed an Employee Resource Group Partnership Statement, which says that the company views its employee network groups as business partners and important elements of recruitment and retention.

The company calls its networks "business resource groups"; some have been around since the early 1970s and "tend to be homogeneous groups" with a "significant self-help mission," says Patsy Randell, vice president of corporate diversity and multicultural business affairs. Groups at Honeywell include the American Indian Council, the Black Employee Council, the Asian American Council, the Pride Council (representing gay and lesbian employees), the Older Workers Council, a Work and Family Council, and others. The groups typically organize within a business unit and are expected to have executive sponsors. Randell serves as adviser from corporate headquarters for all groups, company- wide.

Honeywell's Asian American Council was "instrumental in helping us understand business norms, people and protocol for our expansion into Asia," says Randell. She also notes that the Hispanic Council helped "adjust customer service needs in our home security business for people who don't have English as a first language." And the Council for Employees with Disabilities convinced the corporation to make all Honeywell facilities accessible in the 1980s, long before the passage of the Americans With Disabilities Act.

Randell notes that councils often make funding requests for community- based activities, but Honeywell does more than give money to good causes. For example, instead of simply providing financial support for a recent activity highlighting the achievements of Native American students, Randell worked with the American Indian Council to set up a system for routing the resumes of Native American graduates through the Honeywell pipeline."It's fine to request money to have a Honeywell presence, but let' s do more to improve the representation of Native Americans within Honeywell itself," she urges.

Networks Aid Employee Development
Claudine Schons works as an administrative assistant at AEFA; she is also co-chair of the company's Passages Network for people over 40. It's a volunteer job that Schons says gives her "an outlet, a way to make a difference, to make people aware," and to bring about change. In addition, "the network provides a real opportunity for me to stretch beyond my job tasks," she notes. "It certainly leads to a lot of personal and professional growth" and gives her an opportunity to promote personal and company values.

Network leaders at AEFA are often promoted as a result of their participation and the resulting exposure; they also receive free management training.Egea stresses the need to provide leadership training for the chairperson of each network group because there are "new players each year." AT&T groups sponsor top-notch professional development conferences annually and focus on personal effectiveness, the issues of their constituencies, and improving business skills.

Networks "provide a safe environment to develop leadership skills, " says Egea. Making sure that employees develop those skills can be important to the corporation because "we see the future leaders of the organization in these groups," Egea says.

He also points out that involvement in networks provides a vital political lesson for employees. McCain of 3M agrees: "Most group members become very politically astute, and they learn the value of finding a champion" within management, she says.Supporting the networksAll of the organizations interviewed for this article provide funding for network groups and require them to submit an annual report outlining their objectives and accomplishments.

Employee networks at AEFA receive operating funds, access to e-mail for communications, and a place to meet, in addition to executive support. Each network is required to have a senior vice president as a sponsor.

At Hughes Electronics, networks have access to meeting rooms, copying machines and company communication channels to announce meetings, but they don't have company advisers.

When Hughes employees ask to form an employee network, the HR department provides draft constitutions and bylaws to aid in the group's formation. Once the group's mission has been approved, Barclay sends a company-wide memo to announce the group's formation.

Gaskins gives potential networks at AEFA the corporate Employee Network Guidelines, which outline policies and guidelines for membership, structure, operations and network roles.

When to Limit Group Formation
AEFA has made a business decision to sponsor only those networks that tie into its internal dimensions of diversity, which include "race, age, ethnicity, physical ability, gender and sexual orientation," says Gaskins. "We prohibit any networks that promote a specific religion or political point of view," he says.

To some degree, it's a resource question. "Where can we best apply our resources? If this really is a business issue, we have to focus our efforts," he says. The organization "can't be all things to all people," he admits.

But, Gaskins points out that refusing to sponsor a group is not necessarily a death knell. "We know that groups we don't sponsor still operate on an informal basis," he says.

An integral part of diversityHR professionals can effectively manage network groups by ensuring that there is a business reason for their existence, developing guidelines for establishing networks, recognizing employee needs for community and validation, and asking questions about the continuing role of the networks and their value to the company.

"I don't view diversity and employee network groups as a program," says Randell of Honeywell. "This is a part of the way we manage diversity as an ongoing process."Likewise, at AT&T, diversity and business resource groups are not a singular section of the business plan. Instead, they are integrated throughout the plan, says Egea. Effective employee networks or business resource groups are not stand-alone activities but a part of the diversity process.

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