How US Policy Changes Could Shape Australia's Workforce Dynamics

The Sociopolitical Shift

This moment in sociopolitical history will expose the organisations that truly live their values versus those that change their tune at a moment’s notice, writes David Campbell.

On January 20, 2025, US President Donald Trump issued an executive order to create a new advisory group aimed at dismantling several federal diversity, equity, and inclusion (DEI) programs. The group, named the Department of Government Efficiency (DOGE), has directed agencies to cease these programs within 60 days.

This marks a significant shift from policies that promoted inclusivity, now favoring a merit-based approach that focuses solely on individual qualifications. Spearheaded by Elon Musk, the group also advocates for a return to in-person work, effectively ending the remote work arrangements widely adopted during the pandemic, citing collaboration, team cohesion, and productivity as key drivers.

Implications for Australia

The US government's decision to eliminate DEI initiatives may prompt Australian organisations to reassess their own DEI strategies. However, Australia's regulatory and cultural landscape remains distinct, with initiatives promoting diversity and inclusion strongly embedded in corporate and public sectors, supported by laws like the Fair Work Act and agencies such as the Workplace Gender Equality Agency (WGEA).

Organisations operating across both markets may face challenges in balancing divergent approaches, potentially adopting dual strategies to align with local expectations while accommodating US directives.

Revisiting Workplace Flexibility

The shift towards mandatory in-office work in the US could influence Australian businesses to revisit their remote work policies. However, Australia’s emphasis on work/life balance suggests a more cautious approach. Companies may adopt hybrid models that prioritize flexibility while ensuring collaboration and team engagement.

Flexibility is a cornerstone of modern workforce strategies. Organisations that double down on flexibility will likely emerge as leaders, attracting a diverse talent pool and achieving long-term success. Conversely, rigid in-office mandates may erode trust and alienate workers, leading to higher attrition rates.

Strategic Implications

Advocacy for in-office work often aligns with broader objectives to reduce the workforce without direct layoffs. This raises concerns about employee morale and long-term productivity. The push for in-office mandates may reveal which organisations truly value work/life balance and which see flexibility as a temporary trend.

The Importance of Equity and Cognitive Diversity

Organisations that embrace diverse perspectives are better equipped to generate novel ideas, drawing on a wide range of experiences to achieve more creative outcomes. This shift will reveal a divide between organisations that have merely ticked boxes and those that genuinely believe in the power of equity and inclusion. Investing in people and creating an inclusive culture is not just the right thing to do; it’s a strategic imperative for organisational success.

Ultimately, this moment will expose the organisations that truly live their values versus those that change their tune at a moment’s notice.

David Campbell is a partner at Brand Rebellion.