The CHRO Response to Trump’s Executive Orders on Diversity, AI, Hiring, and Remote Work

As a wave of executive orders from President Donald Trump reshapes workplace policies, CHROs across the country are racing to adapt. Some of the changes target diversity, equity, and inclusion (DEI) programs, return-to-office policies, artificial intelligence initiatives, and the hiring of foreign workers, forcing HR executives to make important decisions that balance their need for legal compliance with their commitments to fostering inclusive cultures.  

“This is a critical moment for the workplace, and SHRM is answering the call as the trusted resource for HR executives and business leaders,” said SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP. 

Trump’s workplace EOs are causing major confusion and concern in the HR community. Among HR professionals who anticipate their organization will be impacted by these orders, nearly two-thirds feel they are either not at all prepared (26%) or only a little prepared (39%) to address the potential implications, according to a SHRM survey conducted in late January 2025. In contrast, only 25% feel moderately prepared and 10% feel very prepared.    

In response to these developments, SHRM has unveiled a series of resources to guide HR leaders during this critical time. These include a First 100 Days hub page, an EO Impact Zone hub page, and a five-step “BEAM Test” (Belonging Enhanced by Access through Merit) that CHROs can used to help determine whether their DEI programs will draw scrutiny in this new environment.   

Here is a roundup of the most important workplace-related EO targets so far:

1. The New Landscape of Workplace Diversity  

Most significantly, a series of Trump’s executive orders aim to dismantle DEI programs within the federal government and among federal contractors, while calling for increased scrutiny of such programs in the private sector.  

One of the most important shifts comes with the rescinding of Executive Order 11246, a 60-year-old EO that required companies that held contracts with the federal government to practice affirmative action based on race and gender.  

Under Trump’s Jan. 21 order, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, federal contractors are now prohibited from engaging in affirmative action, and they must certify that they don't operate DEI programs that violate federal anti-discrimination laws. As a result, the Office of Federal Contract Compliance Programs (OFCCP) has shifted its mission from promoting diversity in federal contracting companies to enforcement against DEI programs deemed discriminatory.   

In addition, the EO requires each federal agency to identify “up to nine potential civil compliance investigations” of private-sector companies or nonprofits related to their “illegal” DEI activities. This action is expected to create a chilling effect on private companies, causing some to scale back or shut down their diversity initiatives.  

Walmart, Meta, McDonald’s, Amazon, and several other Fortune 500 companies have pared back their diversity programs in the past year, in part triggered by a 2023 U.S. Supreme Court ruling that overturned race-based affirmative action in higher education admissions. That court ruling added the necessary fuel to an intense legal and political campaign aimed at putting the brakes on DEI in the corporate world.  

Bottom line: These EOs don’t change existing law regarding discrimination in contracting or employment—it’s still unlawful to make hiring or firing decisions based on a person’s protected characteristics. However, these orders do signal that the Trump administration may view certain DEI programs themselves as unlawful, particularly those based on “illegal preferences, mandates [and] policies” and programs aimed at “workforce balancing” based on race, sex, sexual preference, religion, or national origin.  

For employers, the message—which is not necessarily new—is to make sure their inclusion and diversity practices are tailored to comply with existing anti-discrimination laws, not to give advantages to one person or one group.       

Prioritize Merit-Based Practices  

SHRM is encouraging employers to evaluate and evolve their DEI programs—but not to abandon them. While Trump’s EOs call for the elimination of “illegal” and “discriminatory” programs, they also emphasize the importance of legal, inclusive practices that benefit all employees. 

If they haven’t done so already, organizations should audit their inclusion and diversity initiatives—including hiring, promotion, and training programs—to prioritize merit-based practices while avoiding even the perception of preferential treatment based on protected characteristics, including race, gender, and national origin.  

“SHRM is mobilizing to empower HR professionals, CEOs, and business leaders to ensure inclusion and diversity remain a priority and initiatives are lawful,” said Anuradha Hebbar, J.D., president of SHRM CEO Action for Inclusion & Diversity, who hosted a SHRM webcast on the topic that is now available to watch on demand. “We advise all private companies to evaluate their inclusion and diversity initiatives to ensure they provide equal access to opportunities, skills development, and do not give special advantages to one person or group over another, avoiding any perception of identity-based favoritism.” 

How CHROs Should Respond 

To navigate these challenges, you should take a proactive approach to your diversity and inclusion practices, including these steps:  

• Conduct a Comprehensive Policy Audit. Review your existing diversity programs under the guidance of legal counsel to ensure they align with the new regulatory framework. Make sure your efforts focus on providing equal access to opportunities, skills development, and merit-based advancement, avoiding any hint of favoritism based on protected characteristics. Begin by evaluating hiring, promotion, and retention data for unintentional bias and barriers, and conduct your audit under attorney-client privilege to help protect the conclusions. Leverage SHRM’s five-step BEAM Test to see if your initiatives could draw unnecessary heat in this new environment.  

• Focus on Compliance. Trump’s EOs signal a shift toward stricter interpretation of Title VII. Review your hiring, promotion, and training programs to ensure they don’t inadvertently use protected characteristics as the basis for preferential treatment. Develop policies that emphasize equal access to opportunities while steering clear of identity-based benchmarks and mandates. Identify potential areas of risk, such as programs that could be perceived as endorsing race- or gender-based stereotypes. Introduce neutral assessments wherever possible for hiring and promotions, focusing on real-time capability. 

• Prepare for Increased Scrutiny. The Equal Employment Opportunity Commission, U.S. Department of Labor, and other agencies are expected to adopt stricter oversight of workplace practices.  “Prepare for inquiries about maintaining detailed documentation of your practices, compliance efforts, and your rationale,” said Emily M. Dickens, J.D., SHRM’s chief of staff, head of government affairs, and corporate secretary. “Things happen every day where there are new ideas and new initiatives that are enacted quickly. Make sure that you go back and vet everything.” 

• Communicate with Your Team and Employees. CHROs, CEOs, and executive teams need to proactively communicate to employees your commitment to both legal compliance and workplace equity and inclusion. Senior leaders should establish cross-functional task forces to oversee policy reviews, ensure alignment with the EO, and guide strategic decision-making. 
  

2. Federal AI Guidance Revoked 

Another key executive order issued in Trump’s first week rescinded an EO on artificial intelligence that was signed by former President Joe Biden in 2023. The Biden order sought to develop security standards for AI and introduce consumer and worker protections, but Trump’s team had expressed concerns that it stifled innovation in the AI industry.  

Trump issued another AI-related order on Jan. 23, intended to “solidify our position as the global leader in AI” by promoting innovation and removing any obstacles to its development. The main directive is the development of an AI Action Plan to help “sustain and enhance America’s global AI dominance.”  

SHRM recommends that organizations develop strategic AI integration plans that balance technological advancements with workforce needs. Upskilling and reskilling employees will be critical to address potential displacement caused by automation. 
 

3. Return to In-Person Work for Federal Employees 

As president, Trump can dictate the employment terms of federal employees. His Jan. 20 Return to In-Person Work EO directs executive branch leaders to end remote-work arrangements and require employees to return to in-person, full-time work, with exemptions allowed at their discretion.  

As a result, communities with a large presence of federal workers will see a spike in workers on the roads and back in worksites. Additionally, as the nation’s largest employer, the federal government may serve as a model for the private sector and continue to drive the return-to-office momentum. 

While most organizations have settled into a post-pandemic workplace schedule by now, some employers may see this federal action as an incentive to tighten the reins of flexibility. CHROs need to balance their need for in-office collaboration with employees’ modern expectations of work/life balance. As one recent study noted, many companies experience “abnormally high” employee turnover and a longer time-to-hire after implementing return-to-office mandates.  

Federal buyouts may fuel talent influx. At the same time, the Trump administration is instituting a federal hiring freeze and offering federal workers the option of “deferred resignation,” meaning they have until Feb. 6 to decide to take the buyout offer and still receive pay and benefits through Sept. 30. The administration expects 5% to 10% of federal employees to accept the offer. 

This could impact private employers by flooding the job market—particularly in certain cities—with thousands of experienced workers in the coming weeks and months. CHROs will need to review their recruiting strategies to assess how this influx of experienced talent could impact their hiring strategies, workforce planning, and compensation structures.  

4. Increased Screening for Foreign Nationals 

Among a slew of immigration-related EOs, Trump issued one on Jan. 20 that encourages enhanced vetting and screening of foreign nationals who are seeking to live in the U.S. The EO instructs federal agencies to identify all resources to ensure these people are screened to the maximum degree possible. SHRM is concerned that enhanced vetting could affect the hiring process for companies hiring foreign nationals. 

“There are likely to be longer processing times for visas and work permits, affecting the ability to hire international talent and potentially leading to workforce shortages in certain industries,” said Dickens. 

* * * 

SHRM’s Role  

In response to these sweeping changes, SHRM is providing a range of resources to help employers adapt:  

• Policy Dialogue. SHRM’s Government Affairs team is collaborating with federal agencies and lawmakers to clarify and refine the language of these executive orders.  

• Strategic Guidance. SHRM is offering a First 100 Days hub page, an EO Impact Zone hub page, and a five-step “BEAM Test” to help employers determine the legality of their DEI program. Plus, SHRM is hosting webcasts, offering DEI program reviews, and producing dozens of new thought leadership articles to support HR practitioners.  

• Real-Time Support. SHRM’s HR Knowledge Advisors are on standby to assist members with guidance, support, and resources to navigate these difficult issues.