Grassroots to C‑Suite: Scaling ERGs as Engines of Change 🚀

Employee Resource Groups (ERGs) began as volunteer affinity spaces, but by mid‑2025, they’ve evolved into strategic assets, shaping policy, culture, and leadership decisions.

Why ERGs Matter Now

Research continues to affirm the business case for diversity—and by extension, the power of well-supported ERGs. According to McKinsey’s 2023 report, Diversity Matters Even More: The Case for Holistic Impact, companies in the top quartile for both gender and ethnic diversity on executive teams are 39% more likely to financially outperform those in the bottom quartile for representation. This represents the strongest correlation McKinsey has seen since it began tracking IDEA-related performance outcomes nearly a decade ago. ERGs play a crucial role in building the inclusive culture and leadership pipelines that help organizations reach the top quartile.

In Canada, Deloitte’s 2023 Impact Report emphasizes that ERGs are “critical accelerators of inclusion,” deeply woven into their strategy for culture and belonging.

Four Pillars for Scaling ERGs

1. Executive Sponsorship & Accountability

When ERGs are paired with senior executive sponsors, they gain access to budgets, advocate policy integrations, and are invited into key decision-making forums, turning volunteer energy into systemic influence.

2. Resources & Recognition

ERG leaders aren’t just volunteers, they’re advocates. Teams should be given funding, paid time, training, and visibility to affirm their value and impact.

3. Cultural Intelligence

ERGs offer a window into real-world challenges, such as modern parental policies, mental health support, accessible facilities, and culturally attuned products. Their insights guide a more inclusive strategy.

4. Intersectional Collaboration

When ERGs work together—such as Disability and LGBTQIA+—they surface richer, more intersectional insights, driving comprehensive cultural change.

Real-World Success Stories

• TD Bank Group: ERGs like Women at TD, Platform & Technology Women at TD, and Forever Proud (LGBTQ2+) are integral to TD’s culture and strategy. These groups drive mentorship programs, contribute to talent and community strategies, and advocate for accessibility and inclusion across the organization, as outlined on TD Bank’s official Diversity & Inclusion page.

• Accenture: Historically a leader in ERG-driven inclusion, Accenture abruptly sunsetted its IDEA goals in February 2025, citing U.S. political and regulatory pressures via an internal memo from CEO Julie Sweet. (wkzo.com) This highlights the fragility of progress when ERGs aren't structurally embedded.

Key Takeaways

ERGs can transcend volunteer networks—they can be engines of culture, policy, and innovation. To achieve this, organizations need to:

• Assign executive sponsors for ERGs

• Provide budget, time, and formal recognition

• Act on ERG feedback in products, benefits, and operations

• Encourage cross-ERG, intersectional collaboration

With intentional support, ERGs move from grassroots initiatives to integral partners at the C‑suite table, accelerating sustainable inclusion and business resilience.

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