SHRM Urges Steps to Comply With DEI Executive Orders

Among a flurry of executive orders President Donald Trump issued on his first day back in the White House were orders that essentially dismantled all diversity, equity and inclusion (DEI) initiatives in federal agencies, and strongly urged private businesses to do the same.

Having seen it coming, experts at the Society for Human advised their membership as far back as July to begin prioritizing inclusion and diversity into their policies and practices.

In an hour-long webinar hosted by SHRM Wednesday, Anuradha Hebbar, President SHRM, CEO Action for Inclusion and Diversity, called this a “defining moment” for workplaces across the country.

“These orders have sparked a lot of emotion and pivotal conversations about how organizations approach DEI,” Hebbar told some 32,000 people who were on the webinar call. “It’s clear our collective work on inclusion now for all is more important than ever. This is a defining moment for workplaces across the nation and HR plays a vital role in it.”

Among other things, Trump’s executive orders revoke previous presidential EOs that:

• Advanced racial equity and support for underserved communities through the federal government;
• Assured diversity, equity, inclusion, and accessibility in the federal workforce;
• Advanced economy, efficiency, and effectiveness in federal contracting by promoting pay equity and transparency;

They also:

• Direct federal agencies to terminate their internal DEI, DEIA, and “environmental justice” offices and positions, all “equity action plans”, “equity” actions, initiatives, or programs, “equity-related” grants or contracts, and all DEI or DEIA performance requirements for federal employees, contractors, or grantees; and
• Require identification of federal contractors who provided DEI training to federal agencies, and all grantees who received federal funding for DEI or environmental justice programs since January 20, 2021.

Hebbar said she has talked to a variety of business leaders who are “actively evaluating their initiatives” to ensure that they are not only legally compliant, but they are “evolving them with an eye on effectiveness”

“We advise all organizations to really evaluate their inclusion and diversity initiatives to ensure that they provide access to opportunities, skills development and don’t give special advantages to one person or group over another, avoiding any perception of identity-based favoritism,” Hebbar said. “At SHRM … our mission is to provide you with the tools, the resources, and the expertise to lead with purpose and create vibrant, diverse, inclusive workplaces where everyone contribute their best.

“Remember, diversity is our strength as we move forward with this work,” she added. “Now is the time not to abandon, but to evaluate and to evolve. It is about legal equal opportunity for all. We must continue the hard work around inclusion and diversity to ensure that everyone has a fair chance to access opportunities and succeed at work.”

Dr. Alexander Alonso, SHRM’s Chief Data & Insights Officer, pointed to SHRM’s Belonging Enhanced by Access through Merit (BEAM) framework, which outlines five questions to start analyzing existing DEI programs:

• Are your programs opportunities open to all without regard to an individual’s sex, race or any other protected status?
• Does the program generate opportunities to participate based on an individual’s requisite merit, including specifically their existing skills and proficiencies?
• Does the program select individuals to participate based upon relevant qualifications while accommodating protected medical conditions and religious practices?
• Is the availability of the program effectively communicated to all individuals so that participation is truly open to all?
• Does the program provide opportunities to develop relevant skills, qualifications, and experience for all individuals eligible to participate?

“These are not the only questions, of course, but they’re what we recommend to get started in addressing these big changes,” he said. “These executive orders are just a week old, so we don’t have all the information right now and that will evolve over time.

“Once you start to answer these questions and reflect upon your answers, you’ll be poised to act upon much anticipated further clarification of the inclusion policy landscape by federal agencies and the courts in months to come,” he added.

Jim Link, SHRM’s Chief Human Resources Officer, pointed out there are going to be legal aspects to complying with Trump’s orders, but also offered a “few practical actions” leaders can take in light of them. For instance:

• Take a look to ensure hiring, promotion and training policies do not unintentionally incorporate protected characteristics as factors for preferential treatment.
• Focus on Title VI compliance, maintain detailed documentation of employment practices and compliance efforts,
• Build organizational resilience, and the best way to do that is by balancing compliance with inclusion.
• Establish a cross-functional task force bringing together human resources, legal and other leadership team members to oversee what compliance reviews should be to guide current and future decision-making, and “most importantly, to safeguard your organization against potential regulatory scrutiny,” he said.

“This is no small task, but it’s one all of us who work in human resources, indeed in every human resources department, have been tackling,” Fink said.

Camille Olson, a partner at Chicago-based law firm Seyfarth Shaw, pointed out compliance with the new DEI laws are going to be equally important not only to firms that are federal contrctors or subcontractors, but to any businesses getting federal grant money.

Those firms, she said, are required to certify that they are in compliance with all of the federal laws regarding EEO and that they also do not operate “any programs that promote DEI that violate any applicable federal anti-discrimination laws.” “I ask you to think about this because this is work we really need to do right now. What will be your basis for these certifications? You’ve got to really take a look, identify your relevant programs, evaluate those relevant programs, and consider whether you’ll obtain legal advice relating to compliance that may be of assistance to you in connection with those certifications.”