10-07-2025
5 Steps For Encouraging The Formation Of Employee Resource Groups
Jennifer Morehead is the CEO of Flex HR.
Companies everywhere strive to create a culture for employees that is engaging and special. After all, it's expensive to hire new employees and train them to become productive members of the organization. But according to Gallup research, only 21% of employees globally are actually engaged in the workplace.
One of the crucial ways to engage and retain employees is to ensure they have a buddy, and employee resource groups (ERGs) are a meaningful resource for making people feel like a true part of the organization. What sets these groups apart from other engagement efforts is that they're entirely employee created and led.
If HR leaders and people managers want to encourage ERG formation, it requires a delicate balance to avoid imposing their will. This five-step guide can help organizations foster an environment that encourages the formation of ERGs and supports their lasting success.
1. Foster a culture of inclusion and belonging.
Our workplaces are full of diverse talent. Whether it's gender, ethnicity, religious affiliation or simply interests, employees' lived experience shapes how they view the workplace. Promote inclusion and belonging by modeling this behavior as a foundational company value. For example:
• Create a space that encourages open conversation and actively seeks out diverse points of view.
• Build company policies that support individual identities and needs, like offering expanded time off for religious holidays, compassionate leave or mental health days.
• Invite employees to share more about their cultural celebrations, like sponsoring a lunch or event to bring people together.
2. Establish a clear process for ERG creation.
Successful development of ERG requires a process that's clear, consistent and transparent to ensure all groups receive equal consideration. It could begin with an application form where employees state the potential group's mission and objectives, as well as identify a leadership council. Requiring some thoughtfulness and groundwork prior to the application will make the review process easier and set the ERG up for long-term success.
3. Make your leadership available to serve.
In some organizations, executive sponsorship is a vital aspect of employee resource groups' success. Sponsors are typically an existing manager or leader who either identifies with the community or is a vocal ally. Their role is bridging the gap between the ERG and company leadership, as well as amplifying the group's mission, advocating for its initiatives and promoting its visibility at the highest levels of an organization.
Organizations need a culture where executives are enthusiastic about sponsoring ERGs. This involves promoting the groups' value at the leadership level, explaining the potential for impact and clearly outlining sponsorship expectations. It will also require reasonable accommodation for the time commitment required to be successful.
4. Offer financial support.
The simple act of allowing ERGs isn't enough to maximize their impact. Organizations should offer a designated budget to each one. There are a few approaches to this. Some organizations choose to offer the same amount of financial support to every ERG, regardless of size or scale. Others may require ERG leaders to build a budget based on their goals for the year, which company leadership will review and approve. No matter the approach, providing some level of financial support demonstrates the organization's commitment to ERG success.
5. Integrate ERGs and professional development.
Employee resource groups can be hugely beneficial when building a leadership pipeline. Being an ERG lead provides opportunities for employees to develop critical management skills like meeting facilitation, collaboration, empathy and budget oversight. This experience can prepare rising talent for future roles within an organization, which strengthens the internal leadership pipeline and reinforces a culture of inclusion and belonging.
Supporting the formation and longevity of employee resource groups is a strategic investment in your people and your culture. When ERGs are supported with intention, structure and transparency, they become powerful agents of connection and positive change. Let's face it: the success of ERGs mirrors the success of the workplace culture, where every employee has the opportunity to lead and achieve, all while showing up authentically.
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