Following his retirement as a player, Erskine returned to his native Indiana. He coached at Anderson College for 12 seasons, including four Hoosier Conference championships, and his 1965 squad went 20–5 and reached the NAIA World Series. He had 18 players named to All-Conference teams, and three named as All-American. In 1973, his final season, he coached John Bargfeldt, who later spent three seasons in the minors as a Chicago Cubs prospect. He also became a leader in the community, participating in numerous organizations and businesses, including rising to the presidency of the Star Bank of Anderson, Indiana before easing back to the role of vice chairman of the board. He is devoted to his son Jimmy, who has Down syndrome and lives at home and holds a job nearby at the Hopewell Center for people with developmental difficulties.