Special Edition: DEI Talent Trends with Jennifer Tardy
This is #IncreaseDiversity, a weekly newsletter series + Increase Diversity Toolbox sharing best practices for employers who want to learn how to… well, increase diversity. To see previous editions, visit JenniferTardy.com. | IG: @IncreaseDiversity | Increase Diversity - YouTube
Hi everyone, and welcome to the Increase Diversity newsletter! In this monthly DEI Talent Trends edition, we’ll be taking a closer look at three emerging trends that could significantly impact increasing diversity and retention in the workplace. Today, we will focus on three trends: (1) the rollback of DEI initiatives in government and business, (2) the rise of skills-based hiring, and (3) the decline of the hybrid work environment.
Our CEO and founder, Jenn Tardy, will share her thoughts on how we can think about each trend and its impact on increasing diversity and retention (without harm). So, let’s dive in!
Trend 1: The Rollback of DEI Initiatives in Government and Business
On January 20, 2025, President Trump signed executive orders rolling back DEI initiatives in the federal government, placing DEI staff on paid leave and directing agencies to phase out these roles. This shift signals a broader move to eliminate DEI programs, which the administration argues promote discrimination rather than merit-based advancement. The effects are already spilling into the private sector, with companies like Walmart and Meta scaling back their DEI efforts, and pressure mounting on organizations receiving federal funding.
This raises key questions:
How will the dismantling of DEI initiatives affect workplace culture and morale?
How can companies committed to DEI navigate political and public scrutiny?
Jenn: As a Black woman and someone deeply committed to equity, I feel a profound sadness—almost like grieving the progress we’ve made. But I’m not scared. This moment pushes us to get creative, to ask, “What can we rebuild?” History has shown us that resilience and innovation thrive in the face of adversity, and I believe this challenge is no different. As a leader, I’m “grieving with grit,” and I invite the leaders in our community to share this perspective.
We also need to keep paying attention and asking the hard questions: What exactly is the new administration suggesting is not working within how DEI programs have been managed historically? Where’s the truth, and where are the lies? Acknowledge the truths and debunk the lies, but don’t stop there. Use those insights to drive innovation, finding new ways to rebuild DEI efforts that are more effective, sustainable, and impactful. This moment calls for creativity and strategic thinking to address legitimate concerns while staying unwavering in the commitment to equity and inclusion.
For companies committed to maintaining DEI efforts, the focus should be on strategy and reframing. Instead of saying, “We can’t,” we should ask, “How can we?” This perspective shift can uncover innovative solutions that align with current constraints while still prioritizing equity.
Finally, we need to remember that understanding the new rules is key. Once we know the parameters, we can navigate them effectively with the same goal: increasing diversity without harm. This means staying informed, adapting strategies to align with the shifting landscape, and leveraging every opportunity to innovate within the constraints. The real work now is about easing the minds of the most vulnerable, building trust through tangible action, and proving that progress doesn’t stop—it evolves and strengthens in the face of challenges.
Trend 2: Skills-Based Hiring
Skills-based hiring is rapidly becoming a dominant trend in the US job market. This approach focuses on evaluating candidates based on their skills and potential to learn, rather than their educational background or work history. Companies like Google and IBM have already adopted this strategy, with Google shifting away from traditional qualifications to address labor market skill gaps, and IBM creating apprenticeship programs that emphasize skill-building over formal education requirements.
According to McKinsey, hiring for skills is five times more predictive of job performance than hiring based on education and twice as predictive as relying on work experience
This trend is crucial as it helps solve skills shortages and boosts retention, with employees without degrees staying 34% longer than those with them.
How will companies ensure that their skills assessments are fair and unbiased?
What role will AI play in automating skills evaluations?
How will this trend impact the traditional education system?
Jenn: The key is to focus on the role itself. Ask, “What is the work, and what skills are truly required to do this work well?” With those skills identified, determine:
Which skills can we teach internally? (every company has their own way of delivering)
Which skills must we buy externally?
Who in the job market has the skills we need and willingness to learn what we can teach?
This approach reduces bias by shifting the focus from the person to the skills. When we fixate too much on individuals, biases creep in. But when we focus on the skills, we evaluate through a clearer, fairer lens.
AI can be an invaluable thought partner. It can help identify the skills required for a role, analyze patterns in performance data, and even automate elements of the assessment process. However, it’s critical to keep human oversight in place to ensure the systems themselves remain free from bias.
This trend challenges traditional education systems to evolve. By identifying patterns in the skills most in demand—and those employers are willing to pay a premium for—we can reshape curricula in primary, secondary, and higher education. It’s an opportunity for educators to align more closely with real-world needs, preparing students not just for jobs, but for lifelong adaptability.
Skills-based hiring is an exciting opportunity to build a more inclusive workforce. It’s a reminder to focus on what people can do and how they can grow, rather than where they’ve been. This shift has the potential to break down barriers and create a stronger, more equitable job market for all.
Trend 3: The End of Hybrid Work Environments in Government
On Day 1 of his presidency, President Trump issued an executive order requiring all federal employees to return to the office full-time, with few exceptions. The administration calls this a push toward “traditional workplace norms” and greater accountability, but the shift has sparked concerns about morale, retention, and talent attraction—especially among younger professionals who prioritize flexibility. Some private companies are already following suit, scaling back remote work in favor of in-office mandates.
This raises key questions:
How will eliminating hybrid work impact employee engagement and retention?
Will private companies follow this trend, or will flexibility become a competitive advantage?
What strategies can organizations use to balance productivity with employee well-being?
Jenn: We’re in an era where mental health and self-care are central to workplace conversations. Employees who associate a full-time office environment with neglecting their mental health and well-being will factor that into their decision to stay or leave. This move risks alienating those who found balance and improved productivity in hybrid setups.
Some private companies will follow this lead, but it will come with challenges. They’ll likely face the same morale and retention issues, especially if employees see flexibility as essential.
Companies that have sold or downsized their office spaces may resist this shift due to cost savings.
Businesses thriving with retention and recruitment through hybrid models will continue to leverage flexibility as a competitive advantage.
In contrast, companies that follow a fully in-office mandate may struggle to attract and retain top talent, particularly as flexible work policies remain a priority for many professionals.
If organizations are concerned about productivity in hybrid work environments, the solution isn’t mandating office returns—it’s investing in productivity tools and clear performance metrics. Many employees report being more productive at home, working longer hours without the time drain of commuting. Employers should focus on outcomes rather than physical presence to ensure satisfaction and efficiency align.
Flexibility in the workplace isn’t just about convenience; it’s about trust, well-being, and innovation. While this mandate reflects a shift to “traditional norms,” the reality is that hybrid work has proven its value. For organizations to remain competitive, they’ll need to weigh these changes carefully, balancing structure with the evolving expectations of their workforce.
The evolving workplace landscape presents both challenges and opportunities for organizations committed to increasing diversity and retention. As we navigate the rollback of DEI initiatives, the rise of skills-based hiring, and the end of hybrid work environments, it is imperative to embrace resilience, creativity, and strategic thinking. Stay tuned for next month’s DEI Talent Trends with Jenn Tardy.
Join us in the comments: Which trend resonated the most with you? How are you thinking about these trends?