Reason #3: Not Everything Needs to Justify Itself in Revenue
ERGs are cost centers like L&D and Engagement—but they’re expected to prove ROI no other internal team is. This article breaks down budget disparities, flawed expectations, and why the “4th C” of Commerce doesn’t belong in the ERG conversation.
ERGs aren’t just being asked to do the most — they’re often given the least. And that’s the part of the conversation people keep skipping over.
To elaborate on reason #2…ERGs are not only cost centers; they’re people‑centered cost centers — just like Learning & Development, Employee Engagement, CSR (to some degree, this is part marketing) , and other employee benefits. These are functions that exist specifically to benefit the internal population. Their success isn’t measured by quarterly revenue
I also find it interesting that the other three Cs each map cleanly to distinct internal functions. Community aligns with CSR or social impact teams. Culture ties directly to employee engagement, which sits under HR or the People team. Career is connected to learning and development—again, a clear organizational partner with existing goals, metrics, and large budgets (especially when compared to ERG programs). These areas all reflect how the business invests in its employees. They are internal-facing, focused on employee experience and retention. They aren’t asked to prove ROI the way sales or marketing is. Their job is to build a strong internal ecosystem.
| ERG Program | $20K–$50K total (for companies <5K employees) ; $50K–$100K (for 5K–10K employees)Or ~$10–$50 per employee, if measured that way | These are rough estimates based on industry trends. No formal standard exists. |
| Therapy Stipend | $1,200–$3,000 per employee | Based on typical employer coverage of platforms like Spring Health or Modern Health. |
| Ombudsman Program | $78,000–$112,000+ per year | Per International Ombuds Association, costs vary by scope. Internal conflict resolution and mediation support. |
| Engagement Platforms | $30,000–$100,000+ | Per Culture Amp, Officevibe, and similar tools. Scaled by company size. |
| EAP Program | $24–$60 per employee annually | Per provider benchmarks. Covers basic counseling, crisis support, and work-life tools. |
More budget doesn’t automatically equal ROI. In fact, the opposite is often true: some of the highest-cost internal programs are seen as baseline essentials for employee wellbeing and performance. And yet ERGs—the only one of these functions powered by employees, for employees—are the ones being asked to perform like revenue teams. ***ERGs are powered by unpaid volunteers who are being held to a standard even the paid teams don’t face…*talk about inequity.
Technically this could’ve been paired with reason #2, but I think “following the money” is an important standalone in my take.
Side note: a often referenced and adopted ROI of most employee benefits are often measured in utilization…wouldn’t that make measuring engagement a #1 priority for your ERG Program?