Employee Resource Groups: Examples and How to Start One

If you've heard the term employee resource group and assumed it was something only Fortune 500 companies do, you're not alone. Employee resource groups can sound like corporate jargon — the kind of initiative that requires a dedicated HR department, a DEI budget, and a team of consultants to pull off.

But that's not the reality. Employee resource groups are one of the most practical, low-cost tools a small business can use to build a workplace where people actually want to show up. No HR department required. No big budget needed.

This guide covers everything you need to know: what ERGs are, why they matter, how to structure them, and how to start one — even without an HR team.

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What are employee resource groups?

An employee resource group (ERG) is a voluntary, employee-led group that fosters inclusion, belonging, and professional growth around shared identities, experiences, or interests within a company.

Here's what that looks like in practice:

• Voluntary: No one is assigned to an ERG. Employees join because they want to.
• Employee-led: The group is driven by its members, not management.
• Formally recognized: The company acknowledges and supports the group, even if it doesn't run it.
• Open membership: Most ERGs welcome allies alongside core members.
• Focused: Groups typically form around a shared identity, a common experience, or a shared interest.

ERGs go by a few different names — affinity groups, employee network groups, or business resource groups — but the structure and purpose are largely the same.

Employee resource groups vs. business resource groups

You might see ERGs referred to as business resource groups, or BRGs, particularly in larger organizations. The two terms are often used interchangeably, but there's a subtle difference:

ERG (Employee Resource Group):

• Focused on employee support, belonging, and inclusion
• Member-driven goals and activities
• Common in businesses of all sizes

BRG (Business Resource Group):

• Ties group activities more explicitly to business outcomes
• Often used in corporate settings to signal alignment with company goals
• Same core structure as an ERG, different emphasis

For most small businesses, ERG is the right framing.

What is the purpose of employee resource groups?

ERGs serve four core purposes:

1. Belonging. ERGs give employees a community within the workplace. For team members who might otherwise feel isolated, having colleagues who share their experience makes a real difference — and employees who feel they belong are more engaged and less likely to leave.
2. Professional development. ERGs create leadership opportunities that might not exist otherwise. Running one means organizing events, managing budgets, and communicating with leadership — real skills that benefit your whole business.
3. Cultural awareness. A well-run ERG helps the broader team learn about different backgrounds and perspectives, making for stronger managers and a workplace culture that genuinely values difference.
4. Feedback loop to leadership. ERGs give employees a structured, collective way to raise concerns and advocate for change — surfacing perspectives that ownership might never otherwise hear.

Benefits of employee resource groups

The benefits of employee resource groups extend in both directions — employees get community and career opportunities, while employers see measurable gains in retention, engagement, and culture. 

Here's how it breaks down:

Benefits for employees

Employees who join an ERG gain a support network and a sense of community that translates directly into engagement. Qualtrics research found that belonging is the number one driver of employee engagement — and ERGs are one of the most effective tools for building it.

ERGs also create visibility. Members get to organize events, lead initiatives, and connect with colleagues and leaders they wouldn't otherwise interact with. That visibility opens doors.

Benefits for employers

A study found that well-recognized employees are 45% less likely to turn over after two years. ERGs are one of the most direct ways to build that recognition into your culture — giving employees visibility, community, and a sense that their contributions matter. 

For small businesses, where replacing a single employee can cost thousands of dollars, that's significant. ERGs also improve engagement, which has a direct impact on productivity, customer experience, and team performance.

There's a hiring benefit too. Publicly supporting ERGs signals to candidates that your workplace is inclusive — and that matters in a competitive labor market where workers choose employers based on culture, not just compensation.

Benefits for small businesses specifically

ERGs level the playing field. You're competing for talent against companies with higher salaries and more structured career paths. A strong team culture and real opportunities to grow are things a 15-person business can offer just as well as a 1,500-person corporation.

ERGs also do work that, in a larger company, would fall to an HR or DEI team — cultural events, professional development, employee feedback — without adding headcount.

Risks to keep in mind

ERGs are worth it, but they come with real challenges:

Perceived exclusivity can create division if membership feels closed off. Clear, open membership policies prevent this. 

ERG leader burnout is common on small teams when one person carries everything — build in a co-leader and realistic expectations from the start. 

Lack of leadership support is the biggest risk of all: an ERG without visible backing from ownership sends the wrong message. And it's worth a quick conversation with a legal advisor about how anti-discrimination laws apply to group formation in your state.

Types of employee resource groups

ERGs generally fall into a few broad categories — identity-based, experience-based, interest-based, and virtual. The types that make sense for your business will depend on your team and what they actually need.

Identity-based ERGs

The most common type of ERG, identity-based groups bring together employees who share a background, demographic, or lived experience. These are the groups most people picture when they hear "ERG."

• BIPOC ERGs build community and advocate for equity within the workplace.
• LGBTQ+ ERGs create a safe space for LGBTQ+ employees and allies.
• Women's leadership ERGs focus on professional development and advancing women into leadership.
• DEI ERGs take a broader approach to diversity, equity, and inclusion across the organization.

Experience-based ERGs

Experience-based ERGs form around shared life situations rather than identity. They're especially valuable on small teams where employees may feel like the only person navigating a particular challenge at work.

• Working parents face unique scheduling challenges — an ERG gives them community and a voice.
• Veterans bring distinct perspectives that benefit from peer support and recognition.
• Employees with disabilities can advocate for accessible policies and connect with colleagues who understand their experience.

Interest- or mission-based ERGs

Not every ERG is rooted in identity or experience. Interest- and mission-based groups form around shared values or causes, and they're often a natural entry point for employees who want to get involved but don't see themselves reflected in other ERG types.

• Sustainability ERGs organize green initiatives and connect employees who care about environmental impact.
• Community outreach ERGs focus on volunteering and building relationships with the local community.

Virtual employee resource groups

For shift-based or hourly teams, getting everyone in a room isn't always possible. Virtual ERGs solve that. Using a team communication tool, members can participate asynchronously — sharing updates and ideas on their own schedule. For small businesses with hourly teams, this is often the most practical approach.

Employee resource group activities and ideas

ERGs aren't just support groups — they're active communities. Common ERG activities include:

• Monthly meetings for members to connect and plan initiatives
• Guest speakers bringing outside perspectives into the group
• Mentorship programs pairing newer employees with more experienced colleagues
• Professional development workshops to build skills that benefit both the individual and the business
• Community volunteer events to give back together
• Cultural celebrations recognizing events relevant to the group
• Peer networking sessions for low-pressure relationship building across the business

ERG roles and responsibilities

ERG roles and responsibilities don't need to be complicated, but they do need to be clear. Defining who does what from the start prevents burnout, keeps the group focused, and ensures there's always someone accountable when decisions need to be made.

ERG leader (chair)

The chair organizes meetings, sets the agenda, keeps the group on mission, and serves as the primary point of contact between the ERG and company leadership. In a small business, this person is often doing the heavy lifting — which is why leadership support and a realistic scope matter.

Executive sponsor

A member of ownership or senior management who champions the ERG at the leadership level. They're not running the day-to-day — their role is to advocate for budget and resources and signal that the ERG has genuine backing. In a small business, this is often the owner or a senior manager.

Members

Members participate voluntarily, help plan initiatives, and drive the culture of the group. The best ERGs are ones where members feel real ownership over the direction and activities.

HR or company liaison

This person ensures the ERG stays aligned with company policies and helps navigate compliance questions. In small businesses without a dedicated HR role, the owner or a trusted manager typically fills this function.

ERG structure and governance

A well-run ERG needs a framework. That's where an ERG charter comes in — a simple document that outlines how the group operates. Here's what a basic ERG charter should cover:

• Mission statement: What is this group for, and who does it serve?
• Membership guidelines: Who can join, and is membership open to allies?
• Leadership structure: What roles exist, how are they filled, and how long do terms last?
• Succession plan: What happens when a leader steps down?
• Budget process: How does the group request and manage funds?
• Goals and objectives: What does the group want to achieve this year?
• Reporting cadence: How often does the ERG update company leadership?

A one-page charter that everyone has read and agreed to is far more useful than an elaborate document no one follows.

Employee resource group best practices

Starting an ERG is the easy part. These employee resource group best practices will help you keep it running effectively — and make sure it's actually serving the people it's meant to serve.

Let the group lead. The moment management starts dictating focus, you've undermined the whole thing. Set the parameters, provide support, and get out of the way.

Keep it volunteer-based. Employees should join because they want to — not because they've been volun-told. The same goes for leadership roles.

Set measurable goals. Track participation rates, member satisfaction, and where possible, the impact on retention and employee engagement. You can't improve what you don't measure.

Provide financial support. Even a small budget signals the company takes the ERG seriously. If budget is limited, visibly support fundraising instead.

Build in leadership succession. One of the most common reasons ERGs fall apart is that the founding leader leaves and no one is ready to take over. Plan for transitions from day one.

Revisit the charter annually. Your team changes. Your ERG's goals should too.

How to start an employee resource group

Starting an ERG doesn't require a big budget or a formal DEI program — just a willing group of employees, a clear sense of purpose, and visible support from leadership. Follow these steps to go from idea to first meeting.

1. Gauge interest. Survey your team or start a casual conversation to see if there's appetite for an ERG.
2. Define mission and goals. What is this group for, and what does it want to accomplish in year one?
3. Draft a simple charter. Use the checklist above. One page is fine.
4. Secure leadership support. Find an executive sponsor — in a small business, that's often the owner.
5. Communicate to your team. Let everyone know the ERG exists and how to get involved.
6. Launch with a first meeting. Keep it simple: introduce the mission, meet the members, build momentum.
7. Measure and adjust. Check in after a few months. What's working? What isn't? Adjust accordingly.

Once your ERG is up and running, keeping your team connected and organized is half the battle. Homebase's built-in messaging and scheduling tools make it easy to coordinate ERG meetings around shift-based schedules and keep every member in the loop.

Employee resource groups for small companies

Most ERG content is written for large corporations. Here's what ERGs actually look like at small companies.

Informal ERGs work. A group of employees who meet monthly, share a communication channel, and have a clear purpose is an ERG. You don't need elaborate infrastructure to get started.

Rotating leadership keeps things sustainable. On a small team, concentrating ERG responsibilities on one person leads to burnout. Consider rotating the chair role every six months or sharing across two co-leads.

Budget-light approaches go a long way. A lunch gathering, a shared Slack channel, an after-shift meetup — the format matters less than the consistency. Showing up regularly builds community faster than any single big event.

Small business ERGs punch above their weight. In a large company, an ERG is one of many initiatives competing for attention. In a small business, a well-run ERG is visible and impactful in a way that's hard to replicate at scale. Employees notice when the owner genuinely invests in their community — and that kind of culture is a real retention advantage.

Build a workplace where everyone belongs

ERGs create belonging. But belonging requires communication, organization, and follow-through — and that's where Homebase helps.

• Keep your team connected. ERG updates reach everyone, regardless of when they work.
• Schedule around your people. Coordinate ERG meetings around rotating shifts without the headache.
• Get HR guidance when you need it. Access HR expertise without the cost of a full-time hire.

“As a small business, we don't have financial resources for an HR department. We used to spend so much time on just the day-to-day little issues of running even a small staff. The small investment of upgrading to Homebase All-in-One feels like it added our own human resources staff. New Hire Onboarding and HR Pro have saved us the time that we can better spend growing our business.” — Kim Redeker, Owner of Sweet Granada 

A great ERG runs on trust, community, and consistency. Homebase handles the logistics so you can show up for your team. Get started for free.

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Employee resource group FAQs

What is an ERG in business? 

An ERG, or employee resource group, is a voluntary, employee-led group within a company built around shared identities, experiences, or interests. ERGs are formally recognized by the company and designed to improve inclusion, foster community, and support professional development for their members.

What does ERG stand for? 

ERG stands for employee resource group. You may also see BRG, or business resource group, used interchangeably — particularly in larger corporate settings.

Are employee resource groups only for large companies? 

No, while ERGs are common in Fortune 500 companies, they're equally valuable in small businesses. They don't require a formal HR team or large budget — just willing employees, a clear mission, and visible support from leadership.

Why join an employee resource group? 

Employees join an employee resource group to connect with colleagues who share their background or experiences, access professional development, and have a collective voice for advocating change. ERGs also offer leadership experience that can be hard to find in smaller organizations.

What is an employee resource group charter? 

An ERG charter is a founding document that outlines the group's mission, membership guidelines, leadership structure, goals, and operating processes. It keeps the ERG focused and ensures members and leadership are aligned on how the group functions.

How often should ERGs meet? 

Most employee resource groups meet monthly, which balances staying connected without overloading members. The right frequency depends on your team's capacity and goals. Async check-ins between meetings help maintain momentum.

Are ERG leaders paid? 

ERG leaders are generally not paid — ERG leadership is volunteer-based to ensure leaders participate for the right reasons and prioritize the group's members. That said, companies should support ERG leaders with time, resources, and recognition.