Polarization causing problems in the workplace, and the benefits of a diversified leadership team, were two points strongly underlined in a new report from the Canadian Marketing Association (CMA).

The CMA released a new report on Tuesday, titled DEI in the Canadian Marketing Sector: Polarization, Ageism and Mounting Frustration. The study is the latest entry in four years of work stemming from the organization’s 2020 pledge to combat racism, discrimination and systemic barriers to inclusion in the marketing industry, and it delves into areas that were reported on extensively in previous years like intersectionality, ageism and newcomers to Canada.

Independent research company, Research + Knowledge = Insights, conducted the study, which collected and analyzed 486 responses from marketers in agencies, brands, not-for-profits, service providers and consultancies across Canada.

A strong majority of respondents reported that polarization in the workplace was hurting employee engagement, with 73% saying it affected how they behaved at work. This includes more self-censoring and less socializing in the office, and the study finds that this effect is particularly pronounced among women and in workplaces where senior leadership isn’t diversified. The study asked its respondents to think about polarization as “politics and news items, as well as values or beliefs that force people to take sides on issues without the possibility of a middle ground.”

The report’s authors were overall struck to see the benefits in this year’s report from well-diversified leadership, continuously finding better retention, mentorship and employee engagement in these offices.

The strength of well-diversified leadership can be found all over the report, with many of the concerns it explores being reported more often in workplaces that lack this aspect in its office leaders. Nearly all of the study’s respondents (93%) believe better ideas and solutions come from greater diversity of employees, while 100% said they see the benefit of working with someone who was raised and educated in a different country with a different culture.

Overall, the CMA noted that a critical factor in this year’s study is the stagnation it’s found in many indicators compared to past reports. Diversity in senior and mid-level management has remained relatively stagnant since 2021, the report shows.

The report also found that while there was more genuine and significant support for DEI initiatives, there were also more respondents this year commenting about hiring on merit alone, with some expressing frustrations that they believe DEI initiatives can have negative consequences.

The survey’s open-ended comments criticized DEI performance measures and targets not being effective, senior management still being largely white and male, and on inclusivity efforts lacking depth and sometimes being simply seen as lip service or a box to check

Discrimination and microaggressions were two such issues that remain in the industry, with 47% of marginalized women reporting experiencing microaggressions at work, and also being significantly more likely to agree they have to work harder to be treated equally. The report finds though that these numbers improve on teams with well-diversified leadership.

Employee engagement is hurt in workplaces without well-diversified leadership, the study finds. Two-thirds of respondents (64%) reported preventable employee loss in the last year, with the losses particularly worsened in workplaces without diversified senior leaders. The most commonly reported reasons for employees to leave are lack of job progression, mental health challenges and workload stress. The study also notes that lack of mentorship becomes a significant issue for 39% of respondents in poorly diversified workplaces.

Ageism is another concern the study explored. More than a third of respondents (38%) have noticed layoffs are more likely to affect certain groups, and next to new hires, men and women above 55 years old being the most likely to feel this effect.

Strategy is a partner on this CMA report, providing input into survey questions during the report’s first year, and deploying the survey to readers.