March Special Edition: DEI Talent Trends with Jennifer Tardy

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The DEI landscape is shifting fast, and the stakes have never been higher. Companies are facing mounting pressure from all sides—legal challenges to DEI programs, political opposition, and public scrutiny from both advocates and critics. This month, we’re diving into the biggest trends shaping increasing diversity and retention right now, from lawsuits and boycotts to the rise of skills-based hiring and changing workplace policies.

Our CEO, Jenn Tardy, is here with your March DEI Talent Trends. She will break it all down, offering her take on what these shifts mean for companies committed to increasing diversity and retention. Let’s get into it.

Trend 1: Lawsuits and Boycotts Reshape DEI Landscape

As companies grapple with the evolving political landscape, two significant counter-trends are emerging: lawsuits challenging DEI programs and legal actions, along with boycotts, against organizations scaling back their DEI commitments. 

On February 3, 2025, several organizations, including the National Association of Diversity Officers in Higher Education, filed a lawsuit against the Trump Administration, challenging the constitutionality of executive orders aimed at ending DEI programs. These groups argue that the orders exceed presidential authority and infringe on principles of equality. Simultaneously, Reverend Al Sharpton has called for a boycott of companies that eliminate their DEI programs, announcing a 90-day study to identify targeted businesses. 

Target is already in the spotlight, facing both a lawsuit over its alleged failure to disclose the risks of its diversity initiatives and a simultaneous boycott from advocates demanding stronger commitments. The growing tension signals a critical moment for companies as they weigh legal risks, public perception, and the future of their DEI efforts. 

Jenn: The legal landscape around DEI is shifting fast, and companies are feeling the pressure from both sides—lawsuits challenging their programs and boycotts when they scale back. With lawsuits like the one filed against the Trump Administration on February 3, businesses are realizing they need to be more intentional about how they structure DEI efforts. The focus is moving away from compliance checkboxes to making DEI something that’s truly woven into the fabric of how a company operates—from hiring and retention to leadership development.

At the same time, companies that try to pull back on DEI are running into real risks—legal, financial, and reputational. Employees and advocacy groups aren’t just letting these changes slide; they’re filing lawsuits. Investors are paying attention, and so are customers—sometimes enough to organize boycotts, like the one Reverend Al Sharpton is leading to call out companies that drop their commitments. While boycotts can be hit or miss in terms of long-term impact, they do force companies to clarify where they stand.

So where does this leave businesses? The ones that will navigate this best aren’t just playing defense; they’re making DEI a natural part of how they grow and operate, rather than something they have to reactively defend or explain. Instead of framing it as a program that can be cut or changed based on political shifts, it becomes part of how they hire the best talent, create a culture where people want to stay, and build a brand that employees and customers trust. That’s what will make the difference in the long run.

Trend 2: Reimagining DEI: Renaming and Reframing Initiatives

In response to political pressures, some companies are reimagining their DEI programs by renaming and reframing them to avoid controversy. Instead of explicitly using the term “DEI,” organizations are opting for alternative labels. These rebranded initiatives continue to promote diversity and inclusion but do so in a way that is less politically charged. This trend reflects an effort to uphold the values of increasing diversity and retention while navigating the complex and evolving landscape of workplace equality.

Jenn: In today’s political climate, many companies are renaming their DEI initiatives to sidestep controversy, but the real question is: What is the intention behind the rebrand? Are leaders renaming these efforts to dilute their impact, or are they doing so to sustain and strengthen the work under a new name? A program’s success isn’t about what we call it—it’s about the commitment behind it. What’s in a name? I’m far less concerned with labels and much more focused on the work itself. In fact, naming these efforts too explicitly can sometimes “other” them, making them feel like a side project rather than a core part of how we do business. But here’s the real concern: If leaders are focused on hiding the name, what does that say about their mindset toward the work? It’s going to take time to fully understand what this legislation suggests workplaces can and cannot do, and I often wonder if that’s by design—to keep us distracted by compliance rather than focused on the work itself. So how do we get off this hamster wheel? We shift the focus back to barriers and who they impact most. Too often, resistance leads us to solve for the easiest problems—those that sit within our comfort zones—which historically benefits white women the most. Instead, we need to let the data guide us. Who is most vulnerable? Where do the deepest inequities exist? When we prioritize barriers through that lens, we ensure the work isn’t just about making change where it’s convenient, but where it’s most needed. And when we do that, we don’t have to call it anything at all. It’s just the right way to do business.

Trend 3: Global Implications of Withdrawal from International Organizations

In February 2025, President Trump announced the withdrawal of the United States from certain United Nations organizations and the cessation of funding to these entities. This move includes withdrawing from the UN's LGBTQ+ initiatives, which has sparked international concern about human rights and diversity efforts globally. The decision reflects a broader shift in U.S. foreign policy and could influence how multinational corporations approach increasing diversity and retention in their global operations. Global companies working in multiple countries and/or coordinating with UN agencies may need to strategize their commitments to LGBTQ+ inclusivity and other diversity programs in light of these changes.

Jenn: The U.S. pulling out of certain UN organizations, especially LGBTQ+ initiatives, is going to shake things up globally. Without that funding and advocacy, international protections could weaken, and some countries might follow suit in deprioritizing DEI efforts. That means companies operating worldwide will have to step up—making sure their own policies stay strong, supporting local advocacy groups, and being vocal about their commitments so employees and customers know where they stand.

For U.S.-based companies, staying quiet isn’t really an option. In today’s world, people pay attention to what businesses do (or don’t do), and backing away from DEI could hurt their reputation, talent pipeline, and even investor confidence. The companies that double down on diversity and inclusion—regardless of politics—are the ones that will stand out as leaders and continue to attract top talent and loyal customers.

Moving Forward

The DEI landscape is changing fast, and companies must decide whether to react or lead. The organizations that commit to equity—despite legal, political, and social challenges—will build stronger teams, retain top talent, and gain a competitive edge. And those who hesitate? Well, let’s just say talent and customers are watching. These organizations surely risk falling behind.

If you’re serious about building inclusive teams, we have the tools to help. Join our mailing list for the latest insights, or explore our programs to take the next step in your increase-diversity-and-retention journey.