What is an employee resource group (ERG)?
An employee resource group (ERG) is a voluntary, employee-led network within an organisation, typically formed around shared characteristics (e.g., gender, ethnicity, professional experience) or career interests (such as leadership development). These groups create community, provide peer support and help shape organisational culture.
A Finnish case study of young professionals in an ERG found that participants reported improved soft skills such as communication, networking, and integration into the company, particularly through interaction with leaders.
In practice, ERGs serve as both affinity groups and internal talent & development mechanisms, making them particularly relevant for professional women seeking leadership advancement.
Why do employee resource groups matter for women in leadership?
While these studies were not gender-specific, their insights are particularly relevant for women’s career growth, given that ERGs often provide networking, mentorship, and leadership development opportunities. ERGs play a vital role for professional women, especially in European markets, by offering:
- Networking and mentorship opportunities that might otherwise be limited.
- Visibility within the organisation and a platform to influence leadership.
- A structured environment to develop key leadership competencies.
From an organisational standpoint, firms with effective ERGs see better inclusion outcomes and talent retention. According to McKinsey & Company, employees who consider their ERGs effective are far more likely to feel included at work (83% vs 59%). McKinsey concludes that well-structured ERGs are key drivers of inclusion and engagement.
ERGs can be highly effective, but they’re not a silver bullet. A Great Place To Work case study found a significant perception gap: while 100% of executive sponsors said leadership encourages ERG participation, only 52% of ERG leaders agreed. Many ERGs fall short of their full potential due to limited resources and visibility.
What are the key components of an effective employee resource group (ERG)?
To maximise the impact of an ERG, organisations and participants should focus on:
- Clear mission & strategic alignment – The ERG must tie into organisational goals (e.g., leadership development, inclusion, career progression). Without this alignment, ERGs risk being marginalised.
- Leadership sponsorship & governance – Effective ERGs often have an executive sponsor and a committee structure to ensure visibility and accountability.
- Member activities with impact – This includes mentoring programmes, career-development workshops, networking sessions and forums that target emerging leaders. The study in Finland noted that ERG involvement helped participants improve communication and networking skills, especially via leader-member interaction.
- Measurement and metrics – Track participation, development outcomes, retention rates, internal mobility and member satisfaction. Many ERGs struggle here, as noted by Great Place To Work: leaders admitted to lacking clear measurement frameworks.
- Sustainability and resource backing – An ERG functions best when it has budget, organisational recognition and integration into broader talent/leadership programmes.
How can professional women leverage an employee resource group (ERG) for their career growth?
If you are a professional woman seeking advancement, here’s how to make the most of an ERG:
- Join or become active: Don’t just attend, engage by volunteering for leadership or project roles within the ERG.
- Leverage visibility: Use ERG events and networks to connect with senior leaders and cross-functional peers.
- Focus your learning: Use ERG participation to build skills aligned with leadership roles (communication, influence, strategic networking). The Finnish study found significant improvements in these areas through ERG participation.
- Build a personal plan: Set goals such as “secure a mentorship through the ERG in the next six months” or “lead an ERG initiative”. Track progress and link into your broader career path.
- Connect to broader programmes: An ERG is most powerful when combined with formal career coaching, such as the programmes offered by OLLMOO Career Coaching.
What are the best practices and common pitfalls to avoid with employee resource groups (ERGs)?
Best practices:
- Define a distinctive purpose aligned with both your career goals and your organisation’s mission.
- Ensure clear accountability, leadership sponsorship and visibility.
- Link ERG activities to measurable outcomes (e.g., internal promotions, retention, leadership pipeline).
- Promote ally participation (including men, senior leaders) to build an inclusive culture.
- Continuously review and iterate: keep what works, refine what doesn’t.
Pitfalls to avoid:
- Allowing ERGs to operate in isolation from broader talent or leadership initiatives.
- Neglecting culture, resource allocation or leadership buy-in.
Conclusion
Employee resource groups (ERGs) are powerful vehicles for professional women and inclusive leaders alike. When well-structured, aligned with business goals, and supported by leadership, ERGs can accelerate career growth, build leadership skills, and foster inclusive workplace cultures.
If you want to connect with like-minded professional women, share experiences, and support each other, consider joining the OLLMOO Community – a space to collaborate, learn, and grow together.
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