ERG Best Practices

In today’s competitive landscape, Employee Resource Groups (ERGs) are a business necessity that advances culture, performance and innovation. Research shows that companies with strong, well-supported ERGs consistently see higher levels of employee engagement, retention and innovation outcomes. 

With a comprehensive approach to supporting ERGs, Out & Equal partners with organizations around the world to provide ERG leaders, executive champions and inclusion practitioners with the tools to succeed. Reflecting our unique perspective, this guide draws from current global research, including the Radius Global ERG Impact Report, as well as our work with leading companies across industries.  

The following outlines proven practices to structure, scale and sustain LGBTQ+ ERGs that deliver measurable business impact. For organizations ready to deepen their ERG strategy, the guide pairs with our new ERG Suite of Support, a dedicated hub of tools, training and thought leadership that brings these best practices to life. 

Why LGBTQ+ ERGs Matter 

When Employee Resource Groups are well-supported and integrated into the organization’s strategy, they promote business goals and offer a range of benefits. ERGs foster innovation and resilience, help identify new markets and talent opportunities, build leadership pipelines, influence inclusive policies, and act as a barometer of the organization’s culture. And in addition to providing community for LGBTQ+ employees, ERGs can open doors to leadership, visibility and influence across the enterprise.  

But to realize this wide range of benefits, organizations must provide the right resources and ecosystem of support. For ERGs to become strategic rather than symbolic, organizations must ensure they have: 

• Adequate, sustained funding 
• Active, engaged executive sponsorship 
• Clearly defined, measurable goals 
• Strategic collaboration with key business functions 

Structuring LGBTQ+ ERGs for Impact  

What makes an effective Employee Resource Group? For starters, they need well-defined leadership with officers and event leaders, a charter and an annual strategy that outlines the group’s mission and direction, and a budget to allow for well-resourced programming.  

Next, ERGs should focus on leadership development with intention, using mentorship and upskilling to build a pipeline of future leaders. And executive sponsors must go beyond symbolic support to advocate for the ERG at leadership tables, connect with decision-makers and provide the resources needed to make a real impact. 

Finally, organizations should tap into the power of storytelling and data to showcase the success of their ERGs, building the emotional and business cases for investing in the groups. Storytelling through events, panels and personal testimony humanizes the employee experience. And collecting data on ERG engagement, participation and outcomes helps secure resources and support from leadership.  

Connecting ERGs to Business Strategy 

Besides enhancing an organization’s culture and workforce, Employee Resource Groups offer valuable insights for core business functions, sparking new product ideas, expanding customer reach and shaping inclusive policies. For example: 

• Mastercard’s True Name Project enabled transgender and nonbinary customers to use chosen names on credit cards. 
• Frito-Lay’s Guacamole Doritos was inspired by collaboration with the Latino ERG. 
• Dow’s Black ERG helped design haircare products for textured hair. 

When ERGs are aligned with business goals, they promote innovation and consumer connection. To demonstrate this impact, companies should track: 

• Program reach and participation 
• Post-event feedback and engagement 
• Internal policy and benefit changes informed by ERG insights 
• Retention and promotion outcomes linked to ERG involvement 

Amplifying Inclusivity Within LGBTQ+ ERGs 

Members of high-impact LGBTQ+ ERGs know “LGBTQ+” isn’t a monolith. ERGs are strongest when organizations recognize the intersections of gender identity, accessibility, faith, career level, age and other factors. ERG programs and structures should reflect these layers of diversity within the organization.  

Organizations should strive for inclusive ERGs that:   

• Collaborate with other employee groups to build community 
• Customize programming to avoid a one-size-fits-all approach 
• Use surveys that allow participants to indicate multiple identities 
• Highlight the achievements of ERGs and their leaders to honor their commitment and help prevent burnout 

Further Learning and Resources  

To explore how inclusive workplaces unlock potential across teams and industries, check out these Out & Equal resources: 

• Resilient & Responsive: Five Strategies for Demonstrating ERG Impact (webpage link forthcoming) 
• ERG Best Practices Guide: A tactical framework for building inclusive ERGs that drive structural and cultural change. 
• Allyship in Action: How everyday allyship behaviors improve retention, morale, and business outcomes. 
• Public Policy and Business Strategy: An exploration of the impact shifting laws have on your workforce, and how to respond with strategy, clarity, and inclusive leadership.