Why Employee Resource Groups Matter More Than Ever

Today's workplace is evolving faster than ever. Hybrid work, rapid advances in technology, changing employee expectations and continued economic uncertainty have transformed how organizations attract, engage and retain talent. While competitive pay and benefits remain important, employees are increasingly looking for something deeper: a sense of belonging.

As a financial advisor who works closely with employees, business leaders and organizations of all sizes, I've seen firsthand that people want more than a paycheck. They want opportunities to grow, meaningful connections with colleagues, and confidence that their employer is invested in their success.

One way many organizations are creating that sense of belonging is through Employee Resource Groups (ERGs).

Originally created to support underrepresented employees, ERGs have evolved into communities where people with shared experiences or interests can connect, learn and support one another. Today, many organizations offer ERGs for women, veterans, multicultural employees, working parents, early-career professionals, caregivers and even financial wellness.

Why Belonging Matters

Connection matters. Representation matters. Feeling supported matters. Knowing your voice is valued matters.

When employees feel they belong, they're more likely to engage, collaborate and contribute.

Research from the ERG Leadership Alliance reflects that impact. Employees who participate in healthy ERGs report 10% to 16% higher engagement, and nearly 95% of companies continue to support ERGs because of their positive influence on workplace culture, employee development and business performance.

A strong culture doesn't happen by accident. It grows when employees feel seen, heard and supported.

ERGs Build Future Leaders

One of the most valuable aspects of ERGs is that they give employees opportunities to lead before they have a formal leadership title.

Organizing events, leading committees, managing projects and presenting ideas to senior leadership all help employees strengthen communication, collaboration and decision-making skills. Those experiences often prepare them for future leadership opportunities while helping organizations build stronger internal talent pipelines.

Financial Wellness Is Part of Employee Well-Being

Financial stress affects far more than someone's bank account. It can influence focus, productivity and overall well-being.

That's one reason financial wellness has become an increasingly important part of many ERGs and workplace education programs.

According to TIAA, 65% of Gen Z employees and 61% of millennials believe employers should help support their financial wellness. PwC's 2026 Employee Financial Wellness Survey also found that 57% of employees say money is their biggest source of stress.

Whether the conversation focuses on budgeting, retirement planning or preparing for major life milestones, financial education helps employees build confidence while reducing financial anxiety.

Investing in People Is a Business Strategy

Today's employees evaluate organizations on more than compensation. They also look for workplaces where they can grow, feel connected and build meaningful careers. ERGs help reinforce that commitment by creating opportunities for leadership, mentorship and professional development while strengthening relationships across an organization.

Organizations invest heavily in technology, innovation and future growth. Investing in employees deserves the same long-term perspective because people ultimately drive every organization's success. As workplaces continue to evolve, organizations that invest in connection, professional development and employee well-being will be better positioned to attract, develop and retain talented people.

ERGs aren't simply another workplace initiative. They're an investment in people. And organizations that invest in their people are often the ones best positioned to innovate, grow and succeed for years to come.

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Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. 

Winnie Sun is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Sun Group Wealth Partners, a Registered Investment Advisor and separate entity from LPL Financial.