Recalibration 2025: Federal Contractors, Remote Work, and the Morale Crisis
Tue Dec 16 2025
The workplace in 2025 feels like it's moving at double speed. Federal contractors saw affirmative action requirements disappear virtually overnight. DEI programs have gone from top priority to barely mentioned in less than a year. AI is racing ahead of regulation, and states like Massachusetts are charting their own course while the federal government pulls in the opposite direction.
Pete Wright sits down with Tom Jones and Kyle Pardo to make sense of it all. They walk through what the rollback of Executive Order 11246 means for employers still figuring out what they're required to track, how DEI is quietly shifting toward broader inclusion efforts, and why Massachusetts employers need to watch for changes to state average weekly wage calculations. The conversation also touches on what AI regulation might look like when the technology is evolving faster than lawmakers can keep up, and why remote work mandates are hitting morale harder than many leaders expected.
But the biggest revelation comes from AIM's latest HR practices survey: for the first time in years, employee engagement and morale have become the number one priority for employers heading into 2026, surpassing even compensation. It's a signal that something fundamental has shifted in how organizations are thinking about their people. This episode offers a clear-eyed look at the year that was and what HR teams should be watching as they head into the next.
AIM members can reach the HR Helpline at 800-470-6277 or helpline@aimnet.org for inquiries Monday through Friday from 8:30 a.m. – 5:00 p.m. (EST). Email requests will be responded to within 24 hours.
Links & Notes
Executive Order 11246 (Wikipedia overview) — https://en.wikipedia.org/wiki/Executive_Order_11246 (historical context and 2025 repeal information)I-9 Central (USCIS) — https://www.uscis.gov/i-9-central (comprehensive I-9 compliance guidance)Form I-9 (USCIS) — https://www.uscis.gov/i-9 (current form and instructions)Handbook for Employers M-274 — https://www.uscis.gov/i-9-central/form-i-9-resources/handbook-for-employers-m-274 (detailed guidance for completing I-9)Massachusetts Workers' Compensation Rates — https://www.mass.gov/info-details/minimum-and-maximum-compensation-rates (official state average weekly wage information)Massachusetts PFML 2025 Updates — https://www.fisherphillips.com/en/news-insights/massachusetts-employers-should-prepare-for-2026-paid-family-and-medical-leave-updates.html (state average weekly wage and benefit updates)State AI Legislation 2025 (Future of Privacy Forum) — https://fpf.org/blog/the-state-of-state-ai-legislative-approaches-to-ai-in-2025/ (comprehensive analysis of state AI laws)NCSL Artificial Intelligence 2025 Legislation — https://www.ncsl.org/technology-and-communication/artificial-intelligence-2025-legislation (tracker of AI bills by state)State AI Laws 2025 (White & Case) — https://www.whitecase.com/insight-alert/california-kentucky-tracking-rise-state-ai-laws-2025 (detailed breakdown of enacted state AI laws)
AIM HR Solutions Training CatalogAIM members can reach the HR Helpline at 800-470-6277 or helpline@aimnet.org for inquiries Monday through Friday from 8:30 a.m. – 5:00 p.m. (EST). Email requests will be responded to within 24 hours.
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The workplace in 2025 feels like it's moving at double speed. Federal contractors saw affirmative action requirements disappear virtually overnight. DEI programs have gone from top priority to barely mentioned in less than a year. AI is racing ahead of regulation, and states like Massachusetts are charting their own course while the federal government pulls in the opposite direction. Pete Wright sits down with Tom Jones and Kyle Pardo to make sense of it all. They walk through what the rollback of Executive Order 11246 means for employers still figuring out what they're required to track, how DEI is quietly shifting toward broader inclusion efforts, and why Massachusetts employers need to watch for changes to state average weekly wage calculations. The conversation also touches on what AI regulation might look like when the technology is evolving faster than lawmakers can keep up, and why remote work mandates are hitting morale harder than many leaders expected. But the biggest revelation comes from AIM's latest HR practices survey: for the first time in years, employee engagement and morale have become the number one priority for employers heading into 2026, surpassing even compensation. It's a signal that something fundamental has shifted in how organizations are thinking about their people. This episode offers a clear-eyed look at the year that was and what HR teams should be watching as they head into the next. AIM members can reach the HR Helpline at 800-470-6277 or helpline@aimnet.org for inquiries Monday through Friday from 8:30 a.m. – 5:00 p.m. (EST). Email requests will be responded to within 24 hours. Links & Notes Executive Order 11246 (Wikipedia overview) — https://en.wikipedia.org/wiki/Executive_Order_11246 (historical context and 2025 repeal information)I-9 Central (USCIS) — https://www.uscis.gov/i-9-central (comprehensive I-9 compliance guidance)Form I-9 (USCIS) — https://www.uscis.gov/i-9 (current form and instructions)Handbook for Employers M-274 — https://www.uscis.gov/i-9-central/form-i-9-resources/handbook-for-employers-m-274 (detailed guidance for completing I-9)Massachusetts Workers' Compensation Rates — https://www.mass.gov/info-details/minimum-and-maximum-compensation-rates (official state average weekly wage information)Massachusetts PFML 2025 Updates — https://www.fisherphillips.com/en/news-insights/massachusetts-employers-should-prepare-for-2026-paid-family-and-medical-leave-updates.html (state average weekly wage and benefit updates)State AI Legislation 2025 (Future of Privacy Forum) — https://fpf.org/blog/the-state-of-state-ai-legislative-approaches-to-ai-in-2025/ (comprehensive analysis of state AI laws)NCSL Artificial Intelligence 2025 Legislation — https://www.ncsl.org/technology-and-communication/artificial-intelligence-2025-legislation (tracker of AI bills by state)State AI Laws 2025 (White & Case) — https://www.whitecase.com/insight-alert/california-kentucky-tracking-rise-state-ai-laws-2025 (detailed breakdown of enacted state AI laws) AIM HR Solutions Training CatalogAIM members can reach the HR Helpline at 800-470-6277 or helpline@aimnet.org for inquiries Monday through Friday from 8:30 a.m. – 5:00 p.m. (EST). Email requests will be responded to within 24 hours.