- IMD Business School
General Management

What is an Employee Resource Group (ERG) and why is it important?

How can organizations create a workplace where employees feel supported, valued, and connected? Employee resource groups (ERGs) play a vital role in fostering inclusion, professional development, and a strong sense of belonging.

These employee-led groups bring together individuals with shared identities, demographics, or interests, helping organizations build an inclusive workplace culture.

or interests, helping organizations build an inclusive workplace culture. ERGs can focus on diverse communities, such as women, LGBTQ employees, Black and Latinx professionals, young professionals, and caregivers. They create spaces for networking, mentorship, and advocacy, which contributes to stronger employee engagement and higher retention.

Companies that embrace ERGs benefit from improved collaboration, leadership development, and a deeper connection to their workforce.

This article explores what ERGs do, the different types that exist, and the key benefits they offer. You’ll also learn how to successfully implement ERGs in your organization to drive long-term cultural and business impact.

  1. What are employee resource groups (ERGs)?
  2. The 4 C’s of Employee Resource Groups
  3. The different types of ERGs and who they serve
  4. The benefits of ERGs for employees and organizations
  5. How to start ERGs in your organization?
  6. Examples of ERGs in organizations
  7. Strengthening leadership through ERGs

What are Employee Resource Groups (ERGs)?

Employee resource groups (ERGs) are employee-led groups designed to support underrepresented employees, foster a sense of belonging, and create a strong community within organizations. These groups typically focus on shared common identities, demographics, or professional interests, such as LGBTQ+ employees, Latinx professionals, Black employees, Pacific Islanders, women, and caregivers.

ERGs play a key role in improving company culture, increasing employee engagement, and enhancing the overall employee experience. By bringing together individuals with shared backgrounds or interests, these groups provide a platform for networking, advocacy, and career development.

Additionally, ERGs align with broader DEI initiatives by helping organizations build a more inclusive and supportive work environment. Whether they focus on professional growth, cultural identity, or workplace advocacy, ERGs help create meaningful connections and drive positive change across organizations.

What do ERGs do?

ERGs serve a crucial role in supporting employees and cultivating an inclusive workplace. They provide opportunities for networking, mentorship, and professional growth while also helping organizations retain diverse talent.

These groups offer support structures that enhance employee well-being, mental health, and a sense of belonging, creating an environment where employees feel valued and empowered.

The primary functions of ERGs include:

  • Mentoring and career development. ERGs connect employees with mentors and sponsors who can help guide their professional growth.
  • Professional development opportunities. Many ERGs offer access to training, skill-building sessions, and leadership development programs.
  • Sponsorship and executive support. ERGs often partner with senior leaders and executive sponsors to advocate for workplace policies that benefit underrepresented employees.
  • Networking opportunities. ERGs create spaces for employees to connect, share experiences, and build professional relationships.
  • Well-being and mental health initiatives. Many ERGs offer wellness programs, mental health resources, and support networks that contribute to overall employee retention.
  • Building a sense of belonging and community. By fostering meaningful connections, ERGs help employees feel included and supported within their organizations.

Through these initiatives, ERGs help strengthen workplace culture while driving career advancement and employee satisfaction.

The 4 C’s of Employee Resource Groups

The four C’s of ERGs help organizations structure their ERGs to drive engagement and business success:

Community

ERGs foster a sense of community by bringing employees together around shared identities, interests, or experiences. They create a supportive environment where employees feel heard, valued, and connected.

These groups often become an emotional anchor for employees navigating challenging workplace dynamics, providing psychological safety that enables authentic self-expression and a greater sense of belonging.

Career

Career development is a key component of ERGs, providing mentorship, sponsorship, and training opportunities. ERGs help employees gain access to leadership development programs and build the skills needed to advance in their careers.

By creating visibility opportunities with senior leadership and facilitating cross-functional networking, ERGs help members overcome institutional barriers that might otherwise limit their professional growth.

Culture

ERGs contribute to company culture by promoting diversity, equity, and inclusion. They create spaces for open discussions, cultural awareness events, and programs that celebrate different backgrounds and perspectives.

These groups are often early warning systems for cultural issues, identifying problematic patterns or policies before they become widespread organizational problems.

Commerce

ERGs can support business goals by driving innovation, helping organizations understand diverse markets, and improving employee engagement and retention. Companies with strong ERG programs benefit from increased collaboration and stronger internal networks.

The market insights generated through ERG focus groups and feedback sessions can translate directly to product improvements and more authentic marketing approaches that resonate with diverse customer segments.

The different types of ERGs and who they serve

examples of employee resource groups (erg) - IMD Business School

ERGs come in various forms, each serving different employee populations and needs. Some groups focus on professional development, while others are centered around identity, culture, or work-life challenges. These affinity groups provide critical support for underrepresented employees and help organizations embrace diversity and inclusion more effectively.

Common types of ERGs include:

  • Women’s ERGs. These groups focus on empowering women in the workplace, addressing gender disparities, and providing mentorship opportunities.
  • Young professionals ERGs. Designed for early-career employees, these ERGs offer networking, career development, and leadership training.
  • Black, Indigenous, and People of Color (BIPOC) ERGs. These groups provide a space for BIPOC employees to connect, celebrate culture, and advocate for inclusion. For instance, you might have a Latinx ERG, an African American ERG, an Asian American and Pacific Islander (AAPI) ERG, etc.
  • LGBTQ+ ERGs. Supporting employees of all sexual orientations and gender identities, these ERGs promote allyship and workplace equality.
  • ERGs for employees with disabilities. These groups focus on accessibility, workplace accommodations, and advocacy for employees with disabilities.
  • Caregiver ERGs. Designed for employees balancing work and caregiving responsibilities, these groups provide resources and support for working parents, elder caregivers, and family-focused professionals.

The benefits of ERGs for employees and organizations

Employee resource groups (ERGs) provide numerous advantages for both employees and the organizations that support them. ERGs are effective in fostering community, with 66% of employees rating them successful in this area.

By fostering inclusion, strengthening company culture, and offering professional development opportunities, ERGs help businesses create a more engaged and diverse workforce.

These groups also contribute to talent retention and leadership development, ensuring employees have the resources and support they need to thrive.

Benefits for employees include:

  1. Improved employee engagement. ERGs create a space where employees feel valued, leading to higher job satisfaction and workplace commitment.
  2. Access to professional development opportunities. ERG members gain skills through mentorship, training programs, and leadership roles within the group.
  3. Stronger networking opportunities. Employees connect with colleagues across departments and build relationships that support career growth.
  4. Sponsorship and mentorship. Senior leadership often partners with ERGs to provide career guidance and advocate for members’ growth.
  5. A sense of belonging. ERGs help employees connect with peers who share similar backgrounds or experiences, making the workplace more inclusive.

Benefits for organizations include:

  1. Stronger company culture. ERGs support diversity, equity, and inclusion (DEI) initiatives, reinforcing a culture of respect and collaboration.
  2. Talent retention and development. Employees who feel included and supported are more likely to stay and advance within the company.
  3. Insight for human resources and senior leadership. ERGs identify workplace challenges and opportunities, helping organizations improve policies and practices.
  4. Increased participation in professional initiatives. Employees who engage in ERGs are more likely to attend webinars, networking events, and leadership programs.
  5. Leadership development. ERG participation provides employees with opportunities to gain leadership skills by organizing events, managing initiatives, and working with executive sponsors.

How to start ERGs in your organization?

Launching an ERG program requires careful planning, strong leadership, and organizational support. The process involves identifying key employee needs, securing leadership buy-in, and creating a structure that ensures long-term success. Below are the steps to start an ERG program:

1. Assess employee needs

Before launching any Employee Resource Group (ERG), it’s crucial to conduct a thorough assessment to identify which groups would provide the most value. Start by conducting anonymous surveys, asking specific questions about employee experiences, challenges faced by different demographic groups, and interest in potential ERG topics.

Hosting listening sessions is another effective method, where you can gather employees from diverse backgrounds to collect qualitative insights about workplace inclusion gaps that ERGs could address. Additionally, analyzing demographic data within your organization can help identify underrepresented groups that might benefit from additional support structures.

Finally, researching industry benchmarks will give you an understanding of which ERG types have been successful in similar organizations and the issues they’ve effectively addressed.

2. Gain executive sponsorship

Executive sponsors play a crucial role in the success of Employee Resource Groups (ERGs) and should be actively involved rather than serving as mere figureheads. It’s important to select sponsors based on their commitment, ensuring they demonstrate genuine interest in the group’s mission, rather than just having the right title or demographic alignment.

Creating a formal sponsorship agreement is essential, outlining specific responsibilities such as attending quarterly meetings, advocating for resources, and removing organizational barriers. Establishing clear communication channels is also vital, with scheduled check-ins and progress reports between ERG leaders and sponsors to maintain momentum.

Additionally, training sponsors effectively is key, providing guidance on how to amplify ERG initiatives without overshadowing employee leadership or taking control of the agenda.

3. Define ERG goals and mission

Successful Employee Resource Groups (ERGs) have focused missions with measurable objectives. Crafting a specific mission statement is essential, addressing how the ERG will support both its members and the organization.

For example, an ERG might aim “to create a supportive community for working parents while developing solutions that help the company attract and retain parental talent.”

Setting specific annual goals is also crucial. These goals might include increasing membership by a certain percentage, developing a mentorship program with measurable outcomes, creating learning resources accessed by a target number of employees, or influencing specific policy changes with measurable impact.

It’s important to align these objectives with business outcomes, connecting ERG activities to talent acquisition, employee engagement scores, or market insights for specific customer segments. Developing concrete success metrics is vital as well, tracking and reporting these to leadership to demonstrate the ERG’s value and impact over time.

4. Recruit ERG leaders and members

Building the right leadership team is essential for sustainable Employee Resource Group (ERG) operations. Start by creating a formal leadership structure, defining roles beyond just “chair” and “co-chair” to include positions focused on communications, events, membership, metrics, and professional development.

Establishing term limits is also important, with one-to-two-year leadership terms to prevent burnout and create leadership development opportunities throughout the organization. Providing specialized leadership training is crucial, offering development specific to ERG management, including budget oversight, strategic planning, and stakeholder management.

Lastly, implementing succession planning is key, identifying and developing future leaders through progressive responsibility within the ERG structure.

employee resource group from imd business school - IMD Business School

5. Develop a structure and initiatives

Effective Employee Resource Groups (ERGs) need operational frameworks that balance structure with flexibility. Start by creating a formal charter that documents governance procedures, meeting cadence, decision-making processes, and how initiatives get approved.

Planning a balanced calendar is also essential, including educational events to increase organizational awareness, professional development workshops tailored to group members’ needs, community outreach opportunities aligned with the ERG’s mission, and social events that build a sense of belonging.

Establishing working committees can help focus on specific initiatives, distributing the workload and increasing engagement opportunities. Lastly, implementing feedback mechanisms is crucial for continuously improving programs based on member input and changing organizational needs.

6. Integrate ERGs into DEI strategies

Employee Resource Groups (ERGs) should complement and enhance broader organizational DEI efforts by including ERG leaders in DEI councils to ensure alignment with company-wide initiatives through formal representation. It’s important to create formal input channels, establishing processes for ERGs to provide insights on policies, practices, and potential blind spots within the organization.

Developing collaborative projects is also crucial, encouraging multiple ERGs to work together on addressing intersectional issues and preventing siloed diversity efforts. Additionally, establishing regular reporting systems allows ERGs to share trends, concerns, and opportunities identified through member experiences with DEI leadership.

7. Promote allyship and inclusivity

Successful Employee Resource Groups (ERGs) extend their impact beyond just affinity group members by creating specific ally roles within the ERG structure, with clearly defined responsibilities and boundaries.

Developing ally education resources is also crucial, helping non-members understand how to effectively support the ERG’s mission without dominating the conversation. Hosting open events that welcome all employees, while still maintaining safe spaces for core group discussions when needed, fosters inclusivity.

Additionally, recognizing effective allyship through formal appreciation programs highlights meaningful contributions from supporters, further enhancing the ERG’s reach and impact within the organization.

8. Secure resources and funding

Sustainable Employee Resource Groups (ERGs) require appropriate resource allocation to thrive. Establishing dedicated annual budgets based on strategic plans rather than ad-hoc requests ensures consistent funding.

Creating time allocation guidelines is also important, providing recommendations for the percentage of work time that leaders and members can devote to ERG activities. Developing infrastructure support, such as communication channels, event planning assistance, and administrative help, further strengthens the ERG’s operations.

Also, implementing formal recognition by acknowledging ERG contributions in performance reviews and promotion considerations validates the importance of this work and encourages continued engagement.

Examples of ERGs in organizations

Organizations across various industries have implemented successful Employee Resource Groups that drive meaningful change and create inclusive workplaces. These examples highlight innovative approaches and tangible impacts from well-established ERG programs:

  • Google’s Women@Google. This ERG focuses on supporting female employees through career development programs, mentorship opportunities, and advocacy for gender equality in tech. 
  • Deloitte’s Veterans Network. This ERG supports military veterans transitioning to corporate careers through specialized onboarding programs, skills translation workshops, and mentorship matching. The network has developed partnerships with veteran service organizations and military bases to create recruitment pipelines that have significantly increased veteran hiring at the firm.
  • AT&T’s Ability. This ERG supports employees with disabilities, mental health challenges, and neurodiversity. It advocates for workplace accessibility, provides career development resources, and fosters community engagement.

Strengthening leadership through ERGs

ERGs are a powerful tool for fostering diversity, equity, and inclusion while enhancing professional development and employee engagement. These groups help organizations create stronger connections among employees, build leadership pipelines, and address workplace challenges.

A well-structured ERG program provides valuable networking, mentorship, and sponsorship opportunities, benefiting both individuals and the company as a whole. Organizations that invest in ERGs create a culture where employees feel heard, supported, and empowered to grow.

For leaders looking to maximize the impact of ERGs and create a high-performance culture, IMD’s “Organizational Leadership: Driving Culture and Performanceoffers a strategic approach to workplace leadership.

This five-week online program helps leaders refine their leadership approach by building an agile Leadership Operating System that fosters engagement, adaptability, and long-term business success. Participants will gain insights into creating an environment where employees can thrive, improve company culture, and drive real change.

Take the next step in strengthening your leadership and shaping the future of your organization.