The Top Benefits of Employee Resource Groups (ERGs) 

Employee Resource Groups (ERGs) are a “need to have,” in workplaces that want to future-proof themselves. Today, they are strategic drivers of belonging, employee loyalty, leadership development, innovation, and retention - shaping how organizations attract talent, engage employees, and live their values.

When ERGs are supported intentionally, they don’t just create community. They strengthen workplace culture, surface insights leaders can act on, and help organizations perform better in a rapidly changing world. Below, we explore the top benefits of ERGs and why they matter more than ever.

What Are Employee Resource Groups?

Employee Resource Groups are employee-led communities built around shared identities, experiences, or interests - such as race, gender, disability, caregiving, or allyship. They create spaces for connection, learning, and advocacy while helping organizations better understand and support their people.

For a deeper overview, explore What Is an ERG?: https://www.verbate.io/knowledge-center/what-is-an-erg

The 10 Key Benefits of ERGs

Retaining Today’s Employees

Burnout is high, trust is fragile, and employees are experiencing historic rates of disengagement at work (Gallup). In this environment, retention is less about perks and more about whether people feel supported, connected, and valued.

ERGs directly contribute to retention by fostering belonging, community, and psychological safety - all proven predictors of whether employees stay. According to Benevity, 90% of companies say ERGs are an important part of their employer value proposition, and 86% say leadership views ERGs as critical to company culture. These numbers reflect a growing understanding: when employees see themselves reflected and supported, loyalty follows.

It’s no coincidence that 84% of organizations are doubling down on their ERGs by maintaining or increasing investment. However, ERG leaders are often volunteer employees - which means sustained impact depends on providing recognition, sponsorship, and the right tools so this work remains energizing rather than exhausting.

Recruiting Tomorrow’s Employees

Today’s candidates are evaluating employers long before the first interview - and they’re paying close attention to signals of belonging. Mentions of ERGs in job postings increased 497% between 2019 and 2023 (Indeed), reflecting how visible ERG programs have become in competitive talent markets.

Younger generations, in particular, expect inclusion to be real and resourced. 86% or Gen Z respondents in a survey reported planning on participating in an ERG or related committee (Tallo).

Visible, well-supported ERGs signal that inclusion isn’t aspirational or performative - it’s embedded into how the organization operates, listens, and grows.

Improving Employee Engagement

When employees feel a sense of belonging and purpose, they are more motivated to contribute. ERGs give employees meaningful ways to engage beyond their core roles, strengthening their connection to company mission and values. Recently, 41% of ‘quiet-quitters’ say engagement & culture is the top thing they’d change at work, with 26% saying well-being (Gallup). 

Organizations consistently see higher engagement survey scores among employees involved in ERGs, driven by increased connection, voice, and shared ownership of culture. In 2024, employees want their jobs to make good use of their skills and abilities; to feel respected at work; to feel safe at work; and to work with integrity - in that order (Qualtrics).

Organizations often see higher engagement survey scores among employees involved in ERGs, driven by increased connection, voice, and shared ownership of culture.

Creating Leadership Development Opportunities

ERG leadership roles function as strategic stretch opportunities where employees build skills organizations deeply need - often before they’re formally recognized elsewhere.

ERG leaders routinely develop competencies in:

• Strategic planning
• Project management
• Cross-functional collaboration
• Public speaking
• Influencing without authority

When supported with training and structure, ERGs become powerful leadership incubators. Learn more about developing ERG leaders through Verbate’s ERG Leadership Growth Program.

Strengthening Commitment to Company Values & Belonging

ERGs provide lived-experience insight that strengthens decision-making and policy development. They help organizations move from stated values to lived values by:

• Advising on policies and identifying gaps
• Partnering with HR and business leaders on improvements
• Surfacing belonging opportunities across the employee lifecycle
• Acting as trusted communication channels during change

This partnership builds loyalty, trust, and credibility across the organization.

Supporting Workplace Culture & Psychological Safety

ERGs model inclusive behavior through dialogue, storytelling, celebration, and community-building. When ERGs are active and supported, employees are more open, trusting, and willing to engage - especially across differences.

These environments foster psychological safety, making it easier for people to speak up, share ideas, and raise concerns early.

Fostering Cross-Functional, Global Collaboration

ERG membership often spans functions, roles, and geographies - naturally breaking down silos. Through shared programming and initiatives, ERGs create opportunities for collaboration that might not otherwise exist.

This cross-functional connection builds empathy, strengthens teamwork, and expands organizational learning. Especially as teams become more distributed and global, ERGs are a strategic superpower in creating resilience, cohesive culture across the entire organization.  

Trusted Partners During Cultural & Functional Change 

It’s no secret that our workplaces are changing rapidly. Leadership priorities shift based on new insights, competition, emerging technologies, consumer sentiment and so much more. As leaders expect their employees to get onboard with changes and shifting priorities according to these factors, there’s often a risk of fatigue, burnout and misalignment. Gone are the days where you can rely on a tops-down message to drive organizational change and transformation. 

This is where we’re seeing ERGs function as a critical, trusted layer for culture. When ERGs are built with trust and transparency, these groups can be valuable places to understand the pulse of your employee base: what they’re curious about, what they’re nervous about, what they’re bought into, what’s burning them out. ERG leaders build incredibly resilient relationships with their members, and so can surface concerns and opportunities early to leadership. And leadership can rely on these groups to test or build messaging around cultural or functional changes within the organization.

In short, ERGs are becoming trusted partners in building a culture with two-way communication between leadership and employees, not just tops-down or bottoms-up.

Driving Innovation & Boosting the Bottom Line

Diverse perspectives lead to better decisions - and the data consistently backs this up. McKinsey’s Diversity Matters Even More research shows that companies with greater gender, ethnic, and cultural diversity on executive teams are significantly more likely to outperform their peers on profitability and value creation. Importantly, McKinsey emphasizes that impact is strongest when diversity is paired with inclusive systems and decision-making - not representation alone.

ERGs play a critical role in operationalizing inclusion. By surfacing lived-experience insights, ERGs help organizations make more informed decisions around products, policies, marketing, and customer experience. This ensures that innovation reflects the realities of today’s diverse workforce and customer base.

As demographic shifts continue and markets become more global, inclusion is no longer optional - it’s a competitive advantage. ERGs help organizations stay responsive, relevant, and resilient by embedding diverse perspectives into how work actually gets done.

Delivering Measurable Business Value

When ERGs are treated as strategic partners, their impact can be measured. Organizations often track:

• Retention and promotion rates
• Engagement and participation
• Leadership pipeline metrics
• Cultural insights and feedback loops
• Event and program outcomes

Measurement reinforces credibility and helps leaders invest where impact is strongest.

How Companies Can Maximize the Value of ERGs

ERGs thrive when organizations invest in them intentionally. Best practices include:

• Providing budgets, sponsorship, and recognition
• Treating ERG leadership as a stretch role with training
• Supporting leaders with connection with other groups
• Establishing clear charters and strategic goals
• Encouraging cross-functional collaboration and intersectionality 

When ERGs are supported like strategic partners - not extracurricular activities - their impact multiplies.

ERGs Are a Strategic Advantage When Supported Well

ERGs drive belonging, innovation, leadership growth, and business outcomes — but only when organizations commit to supporting them well.

For deeper guidance, explore Verbate’s Ultimate Guide to ERGs to learn how to start, grow, and scale employee resource groups.

Ready to strengthen your ERG program? Verbate’s ERG Leadership Community helps connect ERG leaders and program managers to each other, train leaders to think strategically and recognize them for their impactful work.