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ERGs Are More Than a Trend—They’re a Strategic Business Advantage
Over 90% of Fortune 500 companies now have Employee Resource Groups (ERGs)—and that number continues to grow. Even amid political pushback against inclusion initiatives, ERGs are proving themselves as essential tools for fostering connection, engagement, and innovation in the workplace. For business leaders, the message is clear: ERGs are not just nice to have—they’re a must-have.
In a recent interview, Brian K. Reaves, EVP and Chief Belonging, Equity, and Impact Officer at UKG, explained that ERGs help organizations harness diverse perspectives, build trust among employees, and drive better outcomes across retention, culture, and business performance.
Here are three business-critical reasons why leaders should invest in or strengthen their company’s ERGs.
1. Engagement: Building a Culture of Trust and Belonging
ERGs play a central role in employee engagement by offering safe spaces for candid conversations, identity affirmation, and peer support. Reaves points to UKG’s research, which is rooted in the Great Place to Work model, highlighting nine high-trust behaviors like listening, caring, thanking, and developing.
ERGs promote these behaviors in action—leading to stronger relationships, better communication, and deeper employee investment in their roles. When people feel seen and valued, they show up with more energy, creativity, and purpose.
UKG’s ERG RISE (Rising Innovators Sustaining Excellence), for example, focuses on bridging generational gaps and supporting early-career talent. Since launching in October 2024, RISE has grown to 450+ members, helping employees thrive while fueling the company’s broader innovation goals.
2. Retention: Creating Connections That Keep People from Leaving
People stay where they feel connected. According to Nikolay Valchev, SVP at Zoetis, ERGs that foster storytelling and emotional safety empower employees to share their experiences—and deepen their sense of belonging.
At UKG, the caregiver-focused ERG Nest offers critical community support for first-time parents and caregivers navigating life transitions. That kind of targeted support helps employees remain engaged at pivotal moments in their lives—ultimately boosting long-term retention.
ERGs offer an authentic space to build relationships, find solidarity, and reduce the isolation that often leads to burnout or attrition. In today’s competitive talent market, connection is retention.
3. Innovation: Tapping Into Untapped Perspectives
Reaves emphasizes that ERGs act as a mirror of your customer base—helping companies anticipate needs, uncover blind spots, and design better products and services. The diversity of thought that ERGs enable is not just good for culture—it’s good for business.
By encouraging employees to join ERGs they identify with—and also ones that stretch them as allies—leaders help foster empathy, curiosity, and perspective-taking. This blend of comfort and challenge builds stronger leaders and more inclusive strategies.
Reaves adds that executive sponsors often gain more from ERGs than they expect, highlighting the leadership development opportunities these groups provide.
Final Thought: ERGs Are Strategic Growth Engines
Employee Resource Groups aren’t just feel-good programs—they’re powerful engines for employee engagement, loyalty, and innovation. In uncertain times, ERGs give organizations a human-centered advantage. They build trust from the inside out—and help businesses thrive through deeper understanding, stronger communities, and more informed decisions.
