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Trump DEI ban puts HR software, training in limbo
Trump's ban on DEI programs is forcing federal agencies and HR vendors to reevaluate diversity tools and training, with potential legal challenges ahead.
President Donald Trump's ban on federal diversity, equity, inclusion and accessibility programs is prompting government agencies and their technology vendors to reassess HR systems and training.
This week, the Office of Personnel Management ordered agencies to terminate DEIA contractors and end-related initiatives, offices and programs -- a move expected to affect HR software. Many software platforms embed DEIA functions to measure and support workplace diversity goals, which could now face significant changes. OPM referred to DEI as an "ideology," and the Trump administration has accused the program of illegal discrimination without evidence.
Trump's executive orders might face court action, but federal agencies and their HR vendors are now evaluating next steps.
HR software has widely available tools, either from the major vendors or third-party partners, that include tracking candidate diversity metrics, analyzing diversity in the hiring pipeline, and monitoring trends and patterns in diversity. Some tools go deeper by providing diversity filters that surface talent from under-represented groups or anonymize candidate information such as photos, names, graduation dates and other personal identifiers. Other tools can flag biased job language.
HR vendors respond
In statements to Informa TechTarget, a sampling of HR vendors indicated that customers can decide what to use and not use in the software.
In an email, Workday said, "Our solutions are designed for our customers to configure based on their unique hiring and business needs."
ADP stated that, "our team of experts are actively assessing the new government orders and proposed regulatory changes to ensure our solutions continue to facilitate our clients' ability to comply with applicable laws and regulations as they may change."
SAP stated its platform "is designed to provide the flexibility customers need to adapt to their unique business challenges and respond to changing regulatory measures in their local markets." It added that it is "closely reviewing the requirements outlined in the president's executive orders to assess how they may impact our products."
The on and off switch in HR systems
HR software offers HR managers control, enabling them to meet specific requirements, explained Stacia Garr, co-founder and principal analyst at RedThread Research. "You can turn these capabilities on and off, and you can decide who has access to them or not," she said.
Garr said the executive order is almost certain to be challenged in court. Some organizations will "tread water for a bit while they wait to see what happens," she said.
Garr and Gartner analyst Brittany Cook raised questions about the administration's underlying assumptions.
"Inclusive hiring efforts were never intended to give preferential treatment to one group over another, but rather ensure fair processes that open the door to all qualified talent, regardless of who they are," Cook said.
The backlash over diversity programs isn't limited to the government. Private-sector companies such as Walmart have pulled back on their programs while others, including Microsoft and Costco, have continued to support DEI efforts. In an annual shareholders meeting notice, Costco's board wrote: "Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all."
Unconscious bias training may end
The Trump orders might also shut down DEI-related HR training efforts. For instance, in 2023, the U.S. Department of Agriculture mandated unconscious bias training for its workforce to make "the workplace safer, more efficient, productive and more inclusive," wrote Tom Vilsack, the former department secretary. The announcement, which was still viewable Jan. 23, can no longer be accessed through the USDA website. When asked if that training will be ending, a department spokesperson stated in an email that the USDA is reviewing the order "and expects to share guidance on implementing them to agencies and mission areas as soon as possible."
The federal government's effort to diversify its workforce has included initiatives in recent years to hire people with autism. Those efforts are now a question mark. On one side Elon Musk, a top Trump adviser, founder of SpaceX and CEO of Tesla, has talked openly about his Asperger's Syndrome, which might help federal hiring of neurodiverse individuals. On the other hand, there's concern that the government's DEI rollback could broadly hurt attention to disability-related hiring.
Amanda 'Mandy' RalstonFounder and CEO, NonBinary Solutions
Amanda "Mandy" Ralston, a neurodivergent serial entrepreneur, behavioral analyst, and founder and CEO of NonBinary Solutions -- an organization that develops patient care tools for professionals and stakeholders in the neurodiversity ecosystem -- emphasized the importance of diversity in fostering innovation.
"If everybody thinks the same, you don't get any innovation," Ralston said, highlighting that diversity and inclusion programs aren't aimed at eliminating opportunities for any group but at creating more opportunities for all groups.
Diversity and good design
Forrester Research has studied the effect of diversity on design and sees a strong case for assembling teams of people with different backgrounds, genders, races, ethnicities and other characteristics.
If government agencies start to remove diversity from their organizations "and move more toward homogenous teams that all look and think the same, absolutely that's going to impact your ability to deliver an inclusive service to citizens," said Gina Bhawalkar, Forrester's principal analyst on design and accessibility.
"If you've always been excluded because you have a disability, you're really good about spotting accessibility barriers," Bhawalkar said.
Many human capital management tools focus on DEI reporting capabilities to track, store and measure diversity, equity and inclusion progress and goals, and provide a secure place to store sensitive information, according to Gartner analyst Emi Chiba. "Out of an abundance of caution, some organizations may choose to turn these features off.
"However, if the goal of the executive orders is truly to end unfair and discriminatory practices, it stands to reason that the only way to prove and track discrimination is by collecting data," Chiba said.
Patrick Thibodeau is an editor at large for Informa TechTarget who covers HCM and ERP technologies. He's worked for more than two decades as an enterprise IT reporter.