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ARTICLE · 05 JUNE 2026

Part 2 – Why Workforce Analytics May Matter More Than Ever: The Rise Of Merit-Based Compliance Under EO 14398

Federal contractors face a critical question in the wake of Executive Order 14398: should they abandon workforce analytics entirely, or are these diagnostic tools more essential than ever for compliance? This analysis examines how properly structured workforce analytics can reduce legal risk while supporting merit-based employment systems in today's evolving regulatory landscape.

United StatesEmployment and HR

As federal contractors adjust to the rapidly evolving compliance environment surrounding Executive Order 14398 and FAR 52.222-90, many employers are asking an increasingly common question:

Should we stop conducting workforce analytics altogether?

For some organizations, concern surrounding DEI enforcement has created hesitation about reviewing hiring, promotion, compensation, or workforce demographic data.

That reaction may be understandable.

But it may also create greater legal and operational risk.

In reality, workforce analytics, when properly structured as lawful diagnostic compliance tools, may now be more important than ever.

WORKFORCE ANALYTICS ARE NOT THE LEGAL ISSUE

One of the biggest misconceptions in today’s environment is the belief that workforce analyses themselves create liability.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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