President Trump’s early tenure marked a rapid and deliberate shift in federal policy, including actions that could significantly impact talent acquisition (TA) strategies for years to come. This spate of executive orders targeted diversity, equity, and inclusion (DEI) initiatives, return-to-office (RTO) mandates, and artificial intelligence (AI) investment, among other areas. Here’s a closer look at these changes and what TA teams need to know. 

DEI Dismantling: A Departure from Longstanding Policy

The Executive Orders:

• • “Ending Radical and Wasteful Government DEI Programs”: This order mandates the termination of DEI initiatives within federal agencies, including the elimination of all DEI-related roles and offices. 
  • “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”: This order revokes Executive Order 11246, which previously required federal contractors to implement affirmative action programs to promote equal employment opportunities.

 

Why It Matters: These orders signal a departure from decades of federal DEI investment and reflect a broader ideological shift. Because private companies and universities often look to federal policies as a bellwether, this rollback could pressure them to curtail their own DEI efforts, potentially reversing years of progress made toward workplace diversity and representation.

 

What to Expect:

• • Reduced DEI Investment: Many private organizations may scale back DEI programs, limiting pathways for historically marginalized talent and potentially reducing workforce diversity.
  • Increased Legal Risk: Rebranding DEI programs or reframing them under different terminology will not necessarily shield companies from liability, so organizations will need to carefully inventory their hiring and promotion policies to ensure compliance. 

 

Federal RTO Mandate: The Death of Remote Work?

The Executive Order: “Return to In-Person Work”: Executive branch departments and agencies are required to end remote work and return employees to the office.

 

Why It Matters: This mandate mirrors trends seen in the private sector, where companies like Amazon and JPMorgan have already made high-profile moves to end remote work. With federal endorsement, the return-to-office movement could gain momentum, potentially normalizing in-person work as the default for organizations across industries.

 

What to Expect:

• Challenges in Hiring and Retention: Companies mandating in-office work may struggle to attract top talent, especially as senior and tenured employees are more likely to leave for competitors offering remote flexibility.This could lead to higher attrition rates and increased competition for remote-friendly roles.
• Shifts in Employee Value Proposition (EVP): To remain competitive, organizations affected by this policy may need to emphasize the benefits of in-person collaboration and workplace amenities. Conversely, those still offering remote work flexibility may opt to position it as a key differentiator in their branding and messaging.

 

AI Investment: A New Chapter in the AI Arms Race

The Executive Order: “Removing Barriers to American Leadership in Artificial Intelligence”: This order reduces regulatory oversight on AI development and promotes domestic investment in the sector.

 

Why It Matters: The federal government’s commitment to AI, alongside recent announcements—such as the launch of Stargate Project (a $500B initiative), Meta’s $65B investment in AI, and the unveiling of DeepSeek R1—could signal a significant acceleration in AI development. 

 

What to Expect:

• • New Skill Demands: The growing focus on AI may drive demand for expertise in machine learning, automation, and data analytics. To prepare, organizations will need to weigh the tradeoffs of upskilling existing teams versus competing for external talent.
  • Access to AI-Powered Technology: Reduced regulatory hurdles may fast-track the creation and usage of AI-driven employment decision tools, which would be a boon to TA teams whose adoption efforts have been stalled by legal and compliance teams. 

 

Navigating the Road Ahead

For many TA teams, these policy changes may feel jarring, as they directly affect areas where they’ve spent significant time and effort in the last few years. Further, the full impact of the executive orders remains uncertain, as they’ve only just begun to take effect. 

With so much in flux, now is the time for TA teams to take stock of: 

• Legal Exposure: Which policies, if any, need to be adjusted to comply with the new executive orders?* 
• Internal Operations: How might the orders impact hiring infrastructure, including internal policies, training programs, and even tech stack? 
• External Positioning: How should these changes reshape the organization’s EVP, and what, if anything, needs to shift in candidate messaging? 

 

With uncertainty comes the pressure to act quickly, but the best approach is both ensuring compliance and making decisions that align with the organization’s values and long-term hiring strategy. Doing both will require collaboration with internal and external stakeholders, thoughtful reflection, and a clear-eyed assessment of what truly matters to the business.

*Executive orders don’t directly impact private company action; the laws are still the laws BUT the executive orders signal significant scrutiny on DEI efforts. This is more complicated for government contractors and we strongly recommend you consult your legal team.