‘Roller Coaster’ First Year of Trump 2.0: Survey Reveals Top Employer Concerns

Widespread uncertainty and rapid policy shifts during the first year of Trump 2.0 have been a “roller coaster for employers,” according to a new report from the Littler Workplace Policy Institute (WPI).

To gauge employer concerns amid this uncertainty, WPI surveyed more than 300 HR professionals, C-suite execs and in-house attorneys, asking about issues most likely to affect their businesses in the year ahead.

Employer Concerns Peak Around DEI Policy Changes 

Survey results show that DEI changes in 2025 affected 71% of employers, rising to 86% among large organizations with more than 10,000 employees.

More than half (55%) of employers considered rolling back DEI programs, and 60% of large employers said they were concerned about potential DEI-related lawsuits, according to a separate Littler report.

These business impacts followed President Trump’s executive orders. One restricted DEI in the public sector and directed federal agencies to identify private‑sector employers for potential DEI‑related investigations under federal civil rights laws.

The policy landscape remains unsettled, with ongoing litigation creating uncertainty for employers. Most recently, the Fourth Circuit lifted a preliminary injunction that had temporarily halted parts of the executive orders.

HR Insight

In the meantime, many companies are reluctant to dismantle diversity programs that they might have to rebuild if courts later narrow enforcement. Mita Mallick, head of inclusion and culture at Carta, says the business case for diversity is stronger than ever. On the Voices of HR podcast, she pointed to Procter & Gamble’s census analysis, which estimates that multicultural consumers represent over $5 trillion in spending power.

For now, many employers are taking a cautious, structured approach. They’re auditing how initiatives are structured, tightening language around equal opportunity and talent development, and documenting the business rationale behind programs.

Some organizations are also shifting terminology, reframing DEI under concepts like merit, excellence, and inclusion (MEI) and broader initiatives, while keeping the programs tied to recruiting, retention and talent development. That approach helps companies reduce legal risk while keeping flexibility to adjust programs if the courts or policy shifts again.

How Employers Are Handling Immigration Policy Shifts

As businesses prepared for a second Trump term, some attorneys predicted stricter immigration policy measures. 

In WPI’s survey, nearly two-thirds (65%) of respondents said immigration policy shifts in 2025 affected their business, and among large employers, that number jumped to 79%. Many specifically reported facing workforce staffing challenges to varying degrees: 39% said to a small extent, 19% to a moderate extent, and 5% to a large extent.

When asked about how they were handling immigration roadblocks, respondents said they:

• Hired differently based on immigration status
• Reduced immigration sponsorship, and 
• Stopped sponsoring H-1B visas.

These responses highlight practical challenges companies face in maintaining their workforce under changing immigration rules. 

HR Insights

Immigration policy shifts in 2025 have reshaped how employers are thinking about talent sourcing and workforce strategy. Many large employers have adjusted sponsorship practices in response to new costs and uncertainty. Some big firms, including consulting and retail companies, have paused or limited H‑1B sponsorships and updated job postings to require current U.S. work authorization, rather than offering sponsorship, as they rethink cost and compliance exposure.

At the same time, a significant drop in H‑1B sponsorship job postings – down sharply from prior years – suggests a broader shift in recruiting priorities toward candidates who are ready to work without visa hurdles. Rather than eliminating immigration support altogether, some organizations are becoming more selective about which roles they sponsor, prioritizing positions that justify higher costs.

This context means HR teams are increasingly balancing near‑term staffing gaps with long‑term workforce planning. That could look like expanding domestic talent pipelines, reconsidering remote or near-shore options, and strengthening skills‑based pathways to reduce reliance on immigration channels that are vulnerable to policy shifts. Those moves don’t replace immigration support, but they help teams stay agile as policy evolves.

Economic Uncertainty Leads to Layoffs

Thirty-five percent of respondents – and 42% of large employers – reported workforce reductions due to ongoing regulatory and economic uncertainty. 

Employers also reported:

• Pausing or reducing hiring (30%)
• Reducing or eliminating workplace perks (18%)
• Delaying promotions or pay raise increases (17%), and
• Skipping or reducing bonuses (13%)

HR Insight

Workforce reductions and cost‑cutting moves can help manage expenses in the short term, but they also have a lasting impact on employee morale and engagement. What happens after job cuts is just as important as the layoff decision itself: The way HR and leadership communicate about workforce reductions can shape how employees process the change and stay productive.

Transparent, consistent communication about the reasons behind reductions and what comes next is crucial for keeping teams aligned and psychologically safe. To help reinforce trust and keep teams engaged, HR should coach managers to communicate layoffs with empathy and check in with remaining employees.

At the same time, focusing on connection helps mitigate “survivor’s guilt” and disengagement. HR teams often lean into team check-ins, role-clarification discussions and employee engagement activities to reinforce commitment and reduce anxiety in the wake of workforce cuts.

Key Takeaways for HR Leaders

Three practical steps to address the employer concerns from the survey:

• Reassess DEI programs to align with federal enforcement priorities and document business justifications.
• Adjust immigration strategies, including hiring practices and visa sponsorship, to address staffing gaps and ensure compliance.
• Plan for economic pressures by communicating clearly about layoffs, hiring freezes and perk reductions to protect morale and engagement.