How Organizations Are Redefining DEI in 2025
With political shifts and growing public scrutiny, HR leaders are rethinking how they talk about workplace culture. Is it time to move beyond the acronym “DEI” and focus instead on the deeper values of inclusion and belonging?
Executive Order 14173 – “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” – didn’t change federal law, but it did prompt many employers to reassess their strategies. The result: a shift from identity-based language towards values that resonate more broadly with employees and leadership.
At a Glance:
Catapult’s 2025 Evolving HR Strategies for Inclusion Survey Report found that organizations are shifting their approaches in several key ways:
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20% are focusing on inclusive culture
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19% restructured DEI and terminology
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10% modified training
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And only 3% eliminated DEI offices or ERGs
Perhaps most striking: 64% of organizations reported not having a formal DEI policy in place. While surprising, this gap presents an opportunity to align inclusion efforts more directly with organizational values and workforce expectations.
So where does that leave HR leaders today?
Compliance is the catalyst, but culture is still the compass. HR leaders are navigating legal uncertainty while trying to preserve inclusive environments.
The belief in the business value of diversity hasn’t disappeared, but it is being reframed. Organizations are shifting from identity-based language to values-driven approaches that emphasize belonging, fairness, transparency, and respect in the workplace.
Belonging is not a substitute for diversity – it’s a deeper commitment to creating environments where people feel seen, valued, and connected. It also serves as a strategic lever for retention, engagement, and performance.
From Contested Terms to Core Values
According to the survey report, the path forward is not about defending an acronym—it’s about reframing it through the lens of risk management, business alignment, and employee trust.
That includes:
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Prioritizing fairness, opportunity, and belonging
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Tying inclusion efforts to measurable results like retention and engagement
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Using inclusive leadership as a driver of adaptability and performance
When the “DEI” label becomes politically sensitive, HR leaders don’t have to retreat. They can reposition the conversation around what really matters: creating a culture where people are respected, equipped, and empowered to do great work.
This November: Learn How to Shape Belonging at Work
Catapult is bringing this conversation home during our upcoming HR Connect event.
Join us in November for a special session with Dr. Carlie Houchins, EdD, Catapult’s Director of Learning, focused on practical strategies to foster real belonging.
You’ll explore:
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The 4 A’s of Adaptability — and why they matter more now than ever
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What inclusion really looks like — beyond check-the-box policies
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How to identify and disrupt bias blind spots
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The 5 competencies of inclusive leadership in 2025
Belonging at work doesn’t just happen—it’s shaped. Register now to be part of this honest conversation with your Catapult community.
Steps HR Leaders Can Take Now
Even before HR Connect, there are ways to start reshaping your internal strategy:
1. Conduct a DEI Risk & Compliance Audit
30% of organizations cited compliance with the executive order as a driver of change. A proactive audit helps identify risks and misalignments in:
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DEI statements and training materials
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ERG charters
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Hiring and promotion criteria
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Job descriptions and internal communications
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Metrics tied to identity categories
2. Build Belonging Through Everyday Actions
Move beyond labels. Embed fairness, transparency, and respect into job postings, performance reviews, trainings, and recognition programs.
3. Equip Your Leaders
Managers set the tone for culture. Training leaders to model inclusivity and recognize subtle bias is critical in today’s workforce. Here are a few courses organizations find most helpful with training managers around culture and belonging:
4. Monitor, Measure, Adapt
Tie inclusion initiatives to outcomes such as engagement, retention, and performance to sustain leadership buy-in.
Additional Resources
Disclaimer: This post is for educational purposes and does not constitute legal advice. Employers should consult legal counsel when modifying compliance or DEI strategies.
Frequently Asked Questions
How are companies redefining DEI in response to legal and political pressure?
Many organizations are shifting from program-focused DEI (ERGs, training mandates, demographic goals) toward embedding inclusion principles into core business practices — hiring criteria, leadership development, pay equity reviews, and supplier diversity. This approach is both more defensible and more sustainable than standalone DEI programs.
Does the executive order on DEI affect private employers?
The January 2025 executive order primarily applies to federal contractors and government agencies. Private employers are not directly bound by it, but many are voluntarily reviewing their DEI programs to avoid political controversy or contractor relationship complications. Private employers should consult legal counsel before making sweeping DEI program changes.
What DEI practices remain legally permissible for employers?
Legally permissible practices include: blind resume screening, structured interviews with objective scoring, pay equity audits, inclusive job descriptions, unconscious bias training (as education, not quotas), employee resource groups open to all employees, and mentorship programs open to all. Numerical hiring quotas based on race, sex, or other protected classes remain illegal under Title VII.
How can HR measure the impact of DEI initiatives without setting quotas?
Track leading indicators: application diversity by source, interview-to-offer ratios by demographic, promotion rates, pay equity gaps by role and level, voluntary turnover by demographic, and inclusion survey scores. These measure systemic outcomes without requiring quota-based targets.
What is the business case for maintaining DEI efforts in 2025?
Research consistently links diverse leadership teams to better financial performance, innovation, and customer insight. More practically, companies that abandon inclusion practices report increased difficulty attracting diverse talent, decreased employee trust scores, and higher turnover among underrepresented groups — all of which carry direct financial costs.
