Why ERGs Might Be the Most Cost-Effective People Program You’re Overlooking

This weekend, I found myself thinking about a simple but powerful phrase: pulling its weight. It popped into my head while watching a business show where one of the billionaire CEOs posed the question.

Where the phrase came from

The context? They were comparing social media platforms, trying to determine if the time and effort (inputs) they spent promoting their business on each platform was justified by the results (outputs). In other words, was the juice worth the squeeze? Or, as I reflected, was each platform pulling its weight?

This really struck a chord with me. It got me thinking about ERG programs and how they're essentially internal marketing tools. What if we started viewing ERGs through that same lens?

Applying it to ERGs

The question becomes: is the time, money, and energy poured into ERGs (the inputs) delivering enough engagement and impact (the outcomes) to make it worthwhile?

I recently spoke with someone who oversees "People Programs" at their company — everything from employee recognition to volunteerism, L&D, onboarding, and DEI. ERGs fall under her massive umbrella of responsibilities, but it made me wonder: is the output from the ERG program enough to justify the investment it requires?

Put simply: is the ROI high enough to make the case for keeping or even expanding the ERG program, especially in a company where resources are limited?

The actual investment is small

I know this perspective might make some folks nervous. It introduces the idea that ERGs, like any other program, need to prove their value. But here's the thing: when you look at it closely, the ERG program is actually better positioned than you might think. Consider the factors:

• Cost: a typical ERG might get a budget of $10K, if they're lucky.
• Labor: often there's a program manager whose compensation might be prorated based on how much of their time is dedicated to ERGs.
• Additional costs: leader recognition, time spent at summits, and sometimes compensation for the leaders involved.

Now, compare that investment to the output: extreme loyalty, a stronger sense of belonging, and deep brand affinity.

How it stacks against other people programs

If you stack that against other programs — say, a single L&D initiative like a leadership development course that could run upwards of $50K for a few participants, or an employee recognition program that offers short-term boosts but fades quickly — the comparison gets interesting.

The benefits ERGs deliver, both tangible and intangible, are substantial. They foster inclusion, build community, boost employee engagement, and serve as leadership pipelines, all while educating employees on cultural competency. And they do this on relatively lean budgets compared to other programs.

So, are ERGs pulling their weight?

Don't get me wrong — every program plays a crucial role in shaping the overall employee experience. But when it comes to ERGs, their ability to deliver outcomes like brand loyalty, a stronger internal culture, increased engagement, and even reduced absenteeism, all for a relatively modest investment, makes them an often underestimated powerhouse.

So, is the ERG program pulling its weight? Absolutely. In fact, I'd argue it's going above and beyond, adding value that many other programs simply can't match on a per-dollar basis.

Consider this when looking for ways to quantify and maximize your ERG's impact.