Private-sector employers have spent the past six weeks trying to parse the clear-as-mud implications of an executive order from President Donald Trump deriding what he classifies as “illegal” diversity, equity and inclusion (DEI) “discrimination and preferences” — as well as a memo from US Attorney General Pam Bondi that “encourage(s)” companies to “end” such “illegal” practices upon threat of being investigated.
On top of that, companies now have to factor in the implications of a February 21 preliminary injunction that blocks three provisions in the administration’s DEI directives.
What all of this will mean practically for you as a private-sector employee or job seeker is not entirely settled, nor will it be uniform across employers. Much will depend on the position that leaders in your company take and the laws in your state governing DEI-related issues.
But here is a look at some of what has started to happen and what further changes you might expect, especially at employers that have federal contracts with the government.
Bye-bye, ‘DEI’. Hello, ‘inclusion’ and ‘talent strategy’
No one knows exactly what the Trump administration is referring to when it warns it won’t tolerate “illegal” DEI efforts, since many things that are mistakenly conflated with DEI — like quotas — are already illegal. And neither Trump’s order, nor Bondi’s memo, change existing anti-discrimination laws.
Related article What is DEI, and why is it dividing America?
As 16 attorneys general from blue states put it in a guidance letter to businesses operating in their states, Trump’s order “conflates valid and legal programs and practices supporting diversity, equity, inclusion and accessibility with unlawful preferences in hiring and promotion.”
Nevertheless, employers have already started making moves in anticipation of possible scrutiny from the administration.
For instance, rather than using the term DEI, you will hear employers instead discuss their desire to foster “inclusion” and talk about how an inclusive culture is an integral part of their “talent strategy.”
And, experts say, when the topic of diversity comes up, employers are likely to discuss it in the broadest terms. So it won’t just be about legal protections from employment discrimination on the basis of certain characteristics — for example, race, national origin and gender — but also things like neurodiversity and geographic diversity.
“Diversity is about how do I make sure my policies and practices are opening doors (for people) and not closing them. Whether you call it DEI or not, it’s just good leadership,” said Jennie Glazer, CEO of Coqual, a firm that does research and advises companies on how to create inclusive workplaces. “The words may change, but the work is still happening.”
If that is the case, however, companies might need to convey that very clearly to their staff. A survey taken in January by SHRM, the leading HR association, found that among respondents who had indicated that their employer had scaled back on DEI, 63% said it has affected their confidence in their employer’s commitment to it.
Fewer DEI-specific jobs
After Trump was elected, and especially after he signed his DEI executive order, some employers closed their DEI programs and laid off the employees working on them.
Related article Target is getting hit from all sides on DEI
Going forward, companies are less likely to hire for jobs with DEI titles. But for those with professional DEI experience looking for work, that doesn’t mean your talents aren’t still needed.
DEI may no longer be a separate department, but companies are aware that fostering diversity gives them a competitive edge. “The workforce is highly diverse,” said Anuradha Hebbar, president of CEO Action for Inclusion and Diversity at SHRM. So without a diverse (staff), she added, “you’re not getting your fair share of talent.”
That’s one reason why those with DEI experience can market their skills as an asset to a company’s integral business strategy, said Kendra Williams, a DEI expert and adviser at The Muse, a career advice and jobs site, which is also the parent company of Fairygodboss, an online career community for women. “Employees and job seekers need to position themselves as valuable thought leaders in multiple areas, including talent attraction and acquisition, employer brand, employee engagement, compliance and organizational change.”
Concern for LGBTQ employees and employees with transgender children
Pew Research found that more than 70% of LGBTQ American adults expect that the Trump administration will have a negative impact on people who are lesbian, gay, bisexual or transgender.
At the moment, the most pointed concern is for transgender employees.
Particular to the workplace, the new acting chair of the Equal Employment Opportunity Commission — Andrea Lucas — put out a statement indicating that she wants the agency to rescind its harassment guidance and stressing her opposition to pursuing cases alleging harassment for not acknowledging an employee’s preferred pronouns or a request to use a given gender’s bathroom. “Sex is binary (male and female) and immutable. It is not harassment to acknowledge these truths — or to use language like pronouns that flow from these realities, even repeatedly,” she said.
Employers are taking note of the trans-related public positions taken by the Trump administration, coupled with restrictive laws in some states, Glazer said. And some already have policies that will let an employee relocate to a new office for safety and health care benefits if they or their families feel at risk where they are currently located.
(Pertaining to other EEOC-related matters, employer-side law firm Fisher Phillips also expects that the finalized rules of the 2024 Pregnant Workers Fairness Act may be rescinded, and that there will be “overall reduced EEOC enforcement and outreach.”)
The future of bias-related training videos is unclear
For compliance and other reasons, many US employees are required to view videos about federal and state workplace laws dealing with harassment, how to spot unconscious bias and how to better support colleagues who may be subject to bias because of various characteristics, such as race, gender or sexual orientation.
Will those persist in the Trump era? It’s hard to say because there are state and local laws that employers will still need to comply with. It’s also possible that some employers might start to incorporate them into leadership development programs. “You’ll see it embedded, instead of bolted on the side,” Glazer said.
But, she noted, don’t assume if your company isn’t requiring everyone to periodically do online training that sexual harassment and discrimination are now okay. They are still illegal.
Employee resource groups must be open to all
If your company has employee resource groups geared toward addressing specific concerns of a given cohort — e.g., women or Hispanic or LGBTQ colleagues — those groups won’t be disbanded necessarily.
But the employer is likely to expect two things: Any group should be open to all employees who want to join. And the aim of the group should be to advance business goals, Glazer said.
That can mean recruiting top talent, engaging in reverse mentoring, bringing in senior management for an open discussion, or developing a product line that speaks to a given demographic.
“We’ve seen companies think about ERGs less as a cohort of employees and more as a coalition of people who want to create community around a business objective,” she said.
Translation: If an ERG is only getting together to organize parties to celebrate big dates, like Pride Month, that may be viewed as more performative, and therefore less likely to garner the company’s support.