What are Employee Resource Groups (ERGs)

As an HR professional, you know that building an inclusive workplace isn’t just about numbers—it’s about creating an environment where every employee feels they truly belong. Yet, despite investing in diversity initiatives, you might face high turnover rates among underrepresented groups, low engagement scores, or difficulty attracting diverse talent.

The solution? Employee Resource Groups (ERGs).

These voluntary, employee-led groups unite individuals who share common identities, experiences, or interests—whether it’s women in leadership, LGBTQ+ professionals, veterans, or working parents. ERGs induce change; they provide safe spaces for employees to connect, stimulate professional development, and offer valuable insights to leadership about workforce needs. When properly supported, they can transform workplace culture, increase productivity by up to 18%, and create tangible business impact through improved innovation and employee engagement.

What are employee resource groups (ERGs)?

Employee resource groups (ERGs) are voluntary, employee-led organizations within a company that are created to promote inclusion, support, and employee engagement.

They bring together employees with common characteristics, experiences, or interests, such as gender, ethnicity, age, or professional goals. For example, affinity groups for women in tech or veterans in the workplace are common forms of ERGs.

ERGs act as safe spaces where ERG members can connect, share experiences, and advocate for meaningful change. They provide opportunities for personal growth and professional development. By hosting events, workshops, and open discussions, ERGs empower employees to feel heard, valued, and included.

On an organizational level, ERGs contribute to a company’s culture by promoting diversity, equity, and inclusion (DEI). They also assist in aligning company policies with the needs of a diverse workforce. ERGs can improve communication between employees and leadership and advocate for new policies or initiatives to strengthen the workplace. In this way, they promote a culture of belonging and ensure employees feel truly connected to their company.

Beyond emotional support, ERGs directly improve employee engagement. Employees who are part of ERGs often report higher levels of satisfaction and loyalty to their companies, which also positively impacts employee retention.

Employee resource groups are more than just networking opportunities. They are important for building inclusive workplaces, supporting individual growth, and improving employee well-being.

Types of Employee Resources Groups

By establishing diverse ERGs, companies can create a more inclusive and supportive workplace, improve employee engagement, and promote professional development and a sense of belonging among ERG members.

The most common types of ERGs include:

Women’s ERGs: These groups support gender diversity and equality in the workplace, providing a platform for women to network, mentor each other, and address gender-specific challenges. For example, Microsoft’s Women at Microsoft ERG empowers women through mentorship and career development programs.
Cultural or ethnic ERGs: These groups celebrate diversity, promote inclusion, and help address the unique needs and challenges employees from different cultural backgrounds face. For instance, AT&T’s Hispanic/Latino Association (HACEMOS) supports Hispanic and Latino employees through networking and community outreach.
LGBTQ+ ERGs: These groups create a safe and supportive environment for LGBTQ+ employees, promoting acceptance and understanding within the company. An example is Qualcomm’s eQuality ERG, which provides an inclusive environment for LGBTQ+ employees.
Veterans’ ERGs: These groups provide support and resources for employees who are military veterans, helping them transition into the corporate environment and connect with fellow veterans. For example, Boeing’s Employees Veterans Association offers veteran employees networking and professional development opportunities.
Disability ERGs: These groups create awareness, reduce stigma, and provide support and resources for disabled employees. They advocate for accessible workplaces and inclusive policies. An example is Microsoft’s DisAbility ERG, which promotes disability inclusion and accessibility within the company.
Working parents’ ERGs: These groups provide support and a network for employees balancing work with parenting responsibilities, offering resources, and advocating for family-friendly workplace policies. For instance, LinkedIn’s Families at LinkedIn ERG supports working parents through various initiatives and resources.
Young professionals’ ERGs: These groups focus on the development and engagement of early-career employees, providing networking opportunities, mentorship, and professional growth resources. An example is Aramark Careers’ Young Professionals ERG, which empowers members in the early stages of their careers.
Mental health ERGs: These groups aim to raise awareness about mental health issues, reduce stigma, and provide support and resources for employees dealing with mental health challenges. They promote a culture of well-being and openness. For example, Accenture has a Mental Wellness ERG dedicated to mental health advocacy and support that provides resources and organizes discussions around mental well-being.

Benefits of ERGs

ERGs are a win-win for employees and organizations. For employees, they provide a sense of belonging, opportunities for professional development, and a platform to connect and grow. For organizations, ERGs increase employee engagement, improve diversity and inclusion, and create a stronger, more collaborative culture.

Benefits of ERGs for employees

According to a McKinsey report, employees believe that their ERG is effective at:

Community building (66%)
External engagement (54%)
Allyship (54%)
Leadership connection (46%)
Career advancement (40%)

The most common benefits include:

1. Increased sense of belonging and inclusion

ERGs act as affinity groups, providing a safe and inclusive space for individuals to connect with others who share similar experiences or backgrounds. Connection promotes a culture of belonging that helps employees feel valued and included, regardless of their identity or role. Employees who feel they belong are more engaged and committed, which contributes to a healthier workplace culture and improves overall employee engagement.

2. Opportunities for professional development

ERGs offer employees tailored opportunities for professional development. These can include:

Skill-building workshops
Leadership training
Access to resources that help employees grow in their careers

Members of ERGs often take on leadership roles within the group, which allows them to develop strategic, organizational, and communication skills that are valuable in any role.

By focusing on employee growth, ERGs empower employees to pursue new challenges and advance their careers, making professional development accessible to everyone.

3. Access to mentorship and coaching

Mentorship programs within ERGs connect employees with experienced professionals who provide guidance, support, and career advice. Mentorship helps employees overcome workplace challenges, build confidence, and achieve their goals.

For underrepresented employees, ERG mentorship programs can offer essential support in overcoming systemic barriers. These programs also promote workplace transparency by supporting open communication and trust between employees and mentors, which creates an environment where employees feel supported and heard.

4. Safe spaces to share experiences and challenges

ERGs provide a supportive environment where employees can openly share their experiences and challenges without fear of judgment. These safe spaces are especially important for employees who may face unique obstacles due to their identity, background, or circumstances.

By offering a platform for honest dialogue, ERGs encourage employees to connect and support one another. They promote a sense of community and align with the organization’s commitment to workplace transparency and inclusion, which improves overall employee satisfaction and well-being.

5. Support for career advancement

ERGs actively support employees in advancing their careers by providing resources, guidance, and advocacy for equitable opportunities. Members gain access to networking events, resume workshops, and career planning sessions that help them prepare for promotions and new roles.

By emphasizing employee development, ERGs ensure employees have the tools and support they need to achieve their professional goals. A proactive approach also aligns with the organization’s efforts to improve employee retention, as employees are likelier to stay with companies that invest in their success.

Benefits of ERGs for organizations

1. Improved employee retention

ERGs help organizations retain their employees by creating a workplace where individuals feel valued and supported. Employees who are part of a community that aligns with their identity or interests are more likely to stay committed to their roles. This reduces turnover, saving the company time and money spent on recruitment.

By improving employee retention, ERGs contribute to a more stable and productive workforce. Organizations often connect these efforts with broader employee benefits programs, ensuring employees feel appreciated and motivated.

2. Increased diversity and inclusion

ERGs promote diversity and inclusion across all levels of the organization. These groups ensure that underrepresented voices are heard and all employees have equal access to resources and opportunities.

Through cultural awareness events and advocacy initiatives, ERGs embed diversity into the company’s culture, making it a more welcoming and equitable environment. This effort aligns with a culture of belonging where all employees feel seen and respected.

3. Improved innovation through diverse ideas

Diverse perspectives are critical for driving innovation, and ERGs bring together employees with unique ideas and experiences. These groups encourage creative problem-solving and help companies develop new strategies, products, or services.

Organizations with strong ERGs benefit from increased creativity and adaptability, which gives them a competitive edge. By promoting a culture of collaboration, ERGs ensure that employees can work together effectively to generate innovative solutions.

4. Insights into employee needs and perspectives

ERGs are a direct line of communication between employees and leadership that offers valuable insights into what employees need to succeed. By gathering feedback and ideas from ERG members, organizations can proactively identify areas for improvement and address challenges.

A transparent feedback loop contributes to workplace transparency and helps the company implement policies and programs that truly reflect the needs of its workforce.

5. Positive impact on employer branding and reputation

Organizations with thriving ERGs are viewed as inclusive and forward-thinking, which improves their reputation as great places to work. Improved employer branding attracts top talent, particularly individuals who prioritize diversity and inclusion in their workplace.

Additionally, ERGs show customers and partners that the company is committed to creating equitable spaces and strengthening its external relationships. A positive image is closely tied to the company’s commitment to employee development and its overall mission of supporting its workforce.

How to support your employee resource groups?

While 90% of Fortune 500 companies have ERGs, only a fraction of these groups achieve their full potential. Why? Often, it’s because they lack the proper infrastructure, resources, and strategic alignment needed to thrive.

By providing the right support, resources, and recognition, organizations can maximize the impact of their ERGs while aligning their efforts with business objectives.

Here are actionable tips for supporting ERGs:

1. Develop a clear structure and processess

Create a charter that outlines the ERG’s mission, goals, responsibilities, and operational guidelines. The structure ensures consistency, accountability, and clarity for members and leadership. A structured approach helps ERGs operate efficiently and align with broader company strategies, promoting employee engagement.

Without clear guidelines, ERGs may struggle to align with organizational goals and sustain their efforts.

Actionable steps:

Draft an ERG charter specifying the group’s mission, vision, and objectives.
Define roles and responsibilities for ERG leaders and members.
Set expectations for meetings, events, and reporting processes.
Collaborate with HR to establish guidelines for ERG formation and operation.

2. Provide resources and budget

ERGs need financial support, meeting spaces, and access to tools. Providing a budget and resources enables ERGs to organize impactful events, training, and outreach programs. This investment reflects the organization’s commitment to diversity and inclusion and ensures ERGs can operate sustainably.

Actionable steps:

Allocate a dedicated annual budget for each ERG.
Provide access to conference rooms, technology, and event planning tools.
Offer marketing support to promote ERG initiatives within the organization.

Google gives its ERGs the resources they need to succeed. For example, the Asian Google Network (AGN) hosts events like Lunar New Year celebrations and talks during Asian Pacific American Heritage Month. These events help build community and highlight diversity at Google. The company also provides tools and platforms to help ERGs plan and promote their activities, showing its commitment to inclusion and giving ERGs the support they need to make an impact.

3. Encourage leadership involvement

Senior leaders as sponsors strengthen ERGs by providing guidance and visibility. They serve as advocates and help ERGs align their goals with company priorities. Their support increases the credibility and influence of ERGs, creating opportunities for members to impact company policies and culture.

Actionable steps:

Pair each ERG with a senior leader as an executive sponsor.
Encourage sponsors to attend ERG events and offer strategic insights.
Schedule regular check-ins between sponsors and ERG leaders.

At Salesforce, leadership plays a big role in supporting equality. Tony Prophet, the Chief Equality and Recruiting Officer, helped lead the Racial Equality and Justice Task Force, which improves fairness in hiring, spending, and giving back. His involvement shows how senior leaders can guide and support efforts, making sure diversity goals match the company’s priorities and giving important programs the attention they need.

4. Recognize and reward contributions

Recognizing the efforts of ERG members motivates participation and highlights their value to the company.

Employee recognition programs can include awards, shout-outs during company meetings, or even performance bonuses. Acknowledging ERG contributions reinforces the organization’s commitment to inclusivity and improves morale among members.

Actionable steps:

Create an “ERG Leadership Excellence” award to honor exceptional contributions.
Include ERG efforts in annual performance reviews.
Share success stories of ERG initiatives in company newsletters.

For example, Seramount has established ERG Impact Awards to recognize outstanding groups, leaders, and members of ERGs in various categories, including Business Impact, Community Impact, Workforce Impact, and Workplace Culture Impact. These awards highlight the significant efforts of ERGs in driving diversity, equity, and inclusion within their workplaces and communities.

5. Promote inclusivity and participation

Encouraging organization-wide participation helps build allyship and collaboration. When employees from all backgrounds engage with ERGs, they better understand diverse perspectives. Inclusivity strengthens the organization’s culture and amplifies the impact of ERG initiatives.

Actionable steps:

Promote ERG events through company-wide announcements and newsletters.
Encourage managers to support employees’ participation in ERG activities.
Host cross-ERG events to encourage collaboration among different groups.

Microsoft’s commitment to diversity and inclusion is clear through its initiatives and progress. According to the 2024 Global Diversity & Inclusion Report, women comprise 31.6% of Microsoft’s global workforce, including 27.2% in technical roles, showing year-over-year increases of 0.4 and 0.5 percentage points, respectively.

6. Facilitate open communication channels

Regular communication between ERGs and leadership ensures that insights and concerns are addressed effectively. Open communication improves workplace transparency and ensures ERGs have a voice in decision-making processes. This promotes trust and demonstrates that leadership values employees’ contributions.

Actionable steps:

Schedule quarterly town halls for ERGs to share updates with leadership.
Create dedicated communication channels (e.g., Slack groups or email lists) for ERGs.
Assign an HR liaison to each ERG to address concerns and provide support.
Distribute regular pulse check surveys to gather insights on ERG needs, satisfaction, and the effectiveness of communication strategies.

Erste Bank faced difficulties maintaining frequent contact with employees and discussing current topics. Feedback often came informally and was sometimes altered during transmission. By implementing HeartCount, Erste Bank conducted regular pulse surveys, enabling them to maintain consistent communication with employees and address relevant issues promptly. This approach empowered employee voices, improved communication, and provided opportunities to discuss current topics effectively.

7. Offer professional development opportunities

Workshops, mentorship, and leadership improve ERG members’ skills and contributions and help them advance their careers. Supporting employee development through ERGs ensures employees feel valued and prepared for future roles.

Actionable steps:

Partner with external organizations to provide leadership training for ERG members.
Host mentorship programs where experienced professionals guide ERG leaders.
Offer public speaking and project management workshops tailored for ERGs.

Heineken has implemented a reverse mentoring program to bridge the gap between senior leaders and junior employees. In this initiative, junior employees mentor senior leaders, providing fresh perspectives and insights into emerging trends and technologies. A survey revealed that 86% of senior leaders wanted to connect with junior employees to acquire new skills and experiences.

8. Measure and share ERG impact

Metrics such as participation rates, engagement scores, and diversity recruitment numbers provide tangible evidence of ERG’s success. Sharing these results contributes to accountability and motivates continued investment in ERGs.

Actionable steps:

Implement surveys to measure the impact of ERG initiatives.
Report metrics such as event attendance and new hires from diverse backgrounds.
Share ERG successes in company-wide meetings or annual reports.

Companies can use tools like HeartCount to monitor employee engagement and satisfaction, which can be applied to ERG initiatives.

Raiffeisen Bank implemented HeartCount’s weekly pulse checks to regularly track employee feedback and identify areas for improvement. This approach brought real-time insights into employee engagement across various categories. By analyzing the collected data, Raiffeisen Bank improved communication with employees and increased overall satisfaction. Its efforts led to higher retention rates, helping maintain a competitive position in the local market.

Ready to unlock the full potential of your ERGs?

Employee resource groups provide employees with spaces to connect, share, and grow while giving organizations the tools to support diversity, equity, and innovation. Ready to take your ERGs to the next level? Start by ensuring you can effectively track their impact and maintain open communication. Take a product tour to see how HeartCount can help strengthen your ERG initiatives.