Traditionally, many people use "they/them" pronouns or "he or she" in place of gender neutral pronouns. However, many argue that using "they/them" pronouns for singular use is incorrect grammar. And using "he or she" for an ambiguous gender erases those who do not conform to the gender binary, those who are intersex, and those who do not confine to the gender binary. Using "it" as a pronoun implies that that person is an object, and is considered degrading.
Officially recognizing "xe/xir" and other various gender neutral pronouns can avoid misgendering someone and allow people who do not use the "he/him" or "she/her" pronouns comfortable.