Gender and I&D: Navigating New Executive Orders

Organizations are working to navigate the implications of recently issued executive orders on diversity, equity, and inclusion (DEI); gender ideology; and merit-based hiring. The orders primarily impact federal agencies and government contractors, but their effects are rippling through private-sector workplaces as they look to shore up their own inclusion and diversity (I&D) programs in response.

Private-sector organizations may be affected by a separate directive by Attorney General Pam Bondi instructing Justice Department officials to submit a report by March 1 with their “recommendations” to “encourage the private sector to end illegal discrimination and preferences, including policies relating to DEI and DEIA [diversity, equity, inclusion, and accessibility].” Bondi asked officials for a list of business sectors of concern in these areas and further asked for a list of the “most egregious and discriminatory DEI and DEIA practitioners in each sector of concern.” 

Recent SHRM research indicated that 2 in 3 organizations do not feel prepared to handle the implications of these executive orders, and nearly half of HR professionals anticipate that these new policies will make their jobs more challenging.

Given this shifting landscape, it is critical for HR leaders to understand what’s at stake and how they can continue to foster a fair, inclusive, merit-based workplace while ensuring compliance with evolving legal frameworks. SHRM leadership recently hosted an on-demand webcast to discuss the legal ramifications of these executive orders and how HR professionals can use SHRM’s BEAM Framework to effectively navigate this evolving landscape.

Breaking Down the Executive Orders

Defining Sex and Gender in the Workplace

The Executive Order on Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government establishes a strict definition of sex as a fixed biological classification.

“This order clearly defines sex as an individual’s immutable biological classification as either male or female only and says that this is necessary to protect women,” said Anuradha Hebbar, J.D., president of SHRM CEO Action for Inclusion & Diversity. “Employers with policies prohibiting discrimination and harassment, including on the basis of gender identity, gender expression, transgender status, and/or non-binary status, should remind employees of those protections. Employers should also emphasize their commitment to a safe, respectful, and inclusive workplace.”

Reassessing Merit-Based Hiring Practices

The Executive Order on Ending Illegal Discrimination and Restoring Merit-Based Opportunity re-emphasizes a focus on merit-based hiring and promotion while eliminating certain affirmative action measures for federal contractors. Historically, I&D initiatives have aimed to level the playing field by addressing systemic barriers but faced criticism for potentially favoring certain groups.

“While a focus on women is vital, some initiatives were myopic in practice and, in some cases, failed to show a direct and measurable correlation to inclusion and business outcomes,” said Tamla Oates-Forney, CEO of Linkage, a SHRM Company.

Adapting I&D Programs for the Future

As workforce demographics shift, HR professionals must take a balanced approach to I&D.

“While we have made progress over the last decade as companies have taken smart actions to ensure women in the workplace succeed, research shows we have more work to do,” Hebbar said.

“The world of work continues to shift rapidly," said Alex Alonso, Ph.D., chief data and analytics officer at SHRM. “While women now make up 47% of the U.S. workforce, earn the majority of degrees, and hold 52% of management and professional roles, they are still underrepresented in executive positions — only 29.1% of all CEOs and 8.8% of Fortune 500 CEOs are female.”

Organizations must prioritize workforce integration strategies that ensure fair opportunities for all employees. This includes revising talent development programs to be inclusive rather than exclusionary.

“The key takeaway to all these things is fairness, not favoritism,” Oates-Forney said. “Opportunities must remain accessible to all employees while appropriately addressing gaps caused by systemic barriers or unique needs.”

Striking a balance between ensuring fairness for all employees and supporting initiatives that allow underrepresented groups, especially women, to thrive can be complex. To navigate this terrain and achieve such a balance, organizations can turn to structured guidance like BEAM, the five-point framework developed by SHRM, to provide a clear path forward.

The BEAM Framework: Ensuring Inclusive and Merit-Based Programs

1. Anti-Exclusion: Are the program’s opportunities open to all without regard to an individual’s sex, race, or any other protected status?
2. Access for All: Does the program generate opportunities to participate based on an individual’s requisite merit, including their existing skills and proficiencies?
3. Merit-Driven: Does the program select individuals to participate based on relevant qualifications while accommodating protected medical conditions and religious practices?  
4. Unbiased and Available Information: Is the availability of the program effectively communicated to all individuals so that participation is truly open to all?
5. Skills-First Optimization: Does the program provide opportunities to develop relevant skills, qualifications, and experience for all individuals eligible to participate?

By applying these questions, organizations can ensure that their I&D initiatives are inclusive, fair, and legally sound. The framework also highlights the importance of aligning I&D efforts with business goals to optimize talent and support a more inclusive work environment. Achieving this alignment is not only necessary for creating fair opportunities but is also crucial for driving business success.

Supporting Women in the Workplace

The good news is that women-focused programs remain viable—but they must be designed inclusively and tailored to address disparities. Oates-Forney said, "I call this a ‘same but different’ approach." Here are a few examples of what this looks like in policies and practice:

• Parental Leave: In companies whose maternity leave has evolved into parental leave, all parents are eligible, but birthing parents are typically granted additional time due to childbirth-related recovery needs. This differentiation is based on unique needs, not favoritism.
• Family and Medical Leave Act: Eligibility remains the same for all, but utilization differs based on circumstances, ensuring equitable support for employees in various life situations.
• Talent Development Programs: Programs must be designed to ensure all employees have access to professional growth opportunities. Open programs can be effective, but some targeted initiatives—such as those for military veterans—address specific needs that broader programs cannot.

Looking Ahead

As legal challenges unfold and federal guidance develops, organizations must remain agile. The executive orders have introduced uncertainty, but they also present an opportunity to refine and strengthen efforts to be both inclusive and merit-based.

HR leaders have a crucial role in ensuring workplaces remain competitive and legally compliant and provide equal opportunities. By utilizing frameworks like BEAM, staying informed, and fostering inclusive yet adaptable cultures, organizations can position themselves for long-term success.