The DEI Pendulum Swings Again – Here’s What Companies Should Do Now

Another U.S. administration, another shift in DEI policy. The news has been abuzz with this recently, but what does it all really mean for companies and hiring practices?

In January, President Trump issued an executive order that fundamentally changes the rules around DEI training for organizations working with the U.S. government. It’s broad, ambiguous, and carries serious consequences – including financial penalties and contract losses. Additionally, a whistleblower clause now incentivizes employees to report their own companies for potential violations.

For many businesses, this raises several questions:

• Can we still run DEI training without legal risk?
• Do we need to rewrite our hiring policies?
• Should we step back from DEI altogether?

The answer to that last one is simple: No. But how we think about DEI needs to evolve.

The Problem With the Latest Executive Order

This executive order effectively outlaws certain conversations about DEI, particularly those that discuss:

• Affirmative action or positive discrimination (hiring preferences based on race, gender, or other protected characteristics).
• Systemic privilege and inequities (e.g., white privilege, gender bias in leadership).
• Gender identity and pronoun usage (content encouraging non-binary inclusion).

This isn’t just a policy shift – it requires companies to rethink how they engage with DEI. The vague language, banning “divisive” training for example, leaves organizations guessing where the line is – that’s not a great place to be.

And it’s not just U.S. companies that need to pay attention. If you work with the U.S. federal government in any capacity, even as a multinational, this order may impact you.

SocialTalent’s Position: What We Stand For (And What We Don’t)

Let’s be clear: We have never advocated for affirmative action or positive discrimination.

Not because of politics, but because in most of the markets we serve, those approaches are illegal. Our work has always been about removing bias so that hiring decisions are based on merit – not assumptions, systemic barriers, or who happens to be in the room.

Fundamentally, the issue isn’t about who gets hired – it’s about who even gets considered in the first place. That’s where bias comes in, and that’s where we focus our efforts with our training.

We stand by our content and our diverse faculty authors, but we also recognize that this situation puts many of our customers in a difficult position. That’s why we’ve always had flexibility built into our learning platform – giving companies the ability to control which content they use while ensuring they have the tools they need to make informed decisions.

The Bigger Lesson: How to Future-Proof DEI in Hiring

Instead of consistently rewriting policies based on new executive order, companies should focus on hiring practices that are inclusive, sustainable, and legally sound.

What does that look like? 

• ✅ Standardized hiring processes: Clear rubrics, structured interviews, and well-documented decisions. 
• ✅ Removing “culture fit”: Hiring based on values and competencies, not personal preferences (and let’s be fair, this has been advocated for for years now!)
• ✅ Widening talent pools: Sourcing from underrepresented communities while ensuring selection remains merit-based. 
• ✅ Regular compliance audits: Understanding legal risks before they become liabilities.

The best way to safeguard against bias claims or legal scrutiny isn’t to avoid DEI – it’s to ensure hiring processes are transparent, objective, and well-documented. Companies should prioritize structured, evidence-based hiring practices, conduct regular audits, and apply clear decision-making criteria. This not only mitigates legal risk but also reinforces fair and equitable hiring.

The Future of DEI: Building Inclusion That Works for Everyone

Let’s be honest. Some past DEI initiatives haven’t worked. And in some cases, they’ve even alienated certain groups or overindexed which could lead to others feeling excluded. That backlash is now playing out in policy.

The solution? Make DEI work for EVERYONE.

• Broaden the conversation beyond race and gender – think about faith, disability, neurodiversity, socioeconomic status.
• Ensure every employee can see themselves in your inclusion efforts, not just underrepresented groups.
• Don’t tie DEI to political cycles. Build something that lasts.

Too often, DEI conversations have focused narrowly on race and gender, creating a perception that inclusion is only for certain groups. Instead, companies should be widening the lens, thinking about socioeconomic background, disability, neurodiversity, faith, and more. True inclusion works when everyone sees themselves in the conversation.

Because at the end of the day, inclusion isn’t about ticking boxes – it’s about making sure the best people are hired, developed, and retained, no matter who they are.

Final Thought: The Companies That Get This Right Won’t Have to Panic Every Four Years

While different US administrations have had diverging approaches to DEI, smart companies aren’t waiting for permission to build inclusive, high-performing teams.

This executive order will change how some organizations talk about DEI. But it shouldn’t change the core of what inclusion in our industry is about – ensuring fair, unbiased hiring that allows the best people to succeed.

At SocialTalent, we’re committed to helping companies build robust, defensible hiring practices that don’t just comply with today’s laws but stand the test of time. Because real inclusion isn’t political – it’s just good business.