In a world where women continue to overcome challenges in a male-dominated field and redefine success across the industry, the sales profession stands as a battlefield where gender disparities persist. We recently conducted research in collaboration with the Stephen Stagner Sales Excellence Institute and the Fowler College of Business, that unveils a stark reality: women make up only 34% of the sales workforce and face gaps in pay despite outperforming their male counterparts.
The figures speak volumes—women represent a mere 29% of sales managers, shedding light on the uphill battle they face in reaching leadership positions within the Sales industry. But the story goes beyond mere statistics; it dives into the structural biases and challenges that hinder women's advancement in this field.
Women in Sales Make Less
The research shows that women in Sales are not only underrepresented but also underpaid, with male counterparts on average earning 3.5% more than women as salespeople, and 3.7%* more as sales managers when it comes to fixed pay. Without adjustment of outside factors, men earn 9% more than women as salespeople, and 13% more as sales managers. Male counterparts are assigned higher quotas—3% for salespeople and 5% for sales managers. These numbers point towards systemic issues that perpetuate the gender pay gap —that women are undervalued and underestimated in the Sales domain.
Performance and Loyalty Are Not Factors in Pay
Mike Ahearne, a prominent figure in the marketing landscape and whom we worked with closely on this study, challenges the misconceptions surrounding the gender pay gap, emphasizing that women not only outperform men but also demonstrate higher loyalty. The argument that women are less committed or competent in sales roles falls flat against the empirical evidence presented in the research. It's clear: if firms rewarded pay based on performance, women would rightfully earn more—a testament to their resilience, skills, and dedication.
The Gender Pay Gaps Differ By Industry and State
Diving into the dynamics of the gender pay gap in the Sales industry unveils intriguing patterns across different sectors and states. In terms of industry disparities, it was found that female sales professionals in the Life Sciences and Pharma sectors have a 9% pay gap, while those in Manufacturing face an 8% gap. Interestingly, the Financial Services industry stands out as a beacon of equity, with no reported pay gap—an encouraging sign for women considering career paths in the industry.
Shifting the focus to state-by-state variations, the geographical location of sales professionals seems to align with pay disparities. Colorado and New Jersey exhibit the largest pay gap between men and women at 7%, while conversely, Georgia and Washington lead the way with the lowest pay gap at 1%.
As we navigate the complexities of gender equality in the Sales industry, it's imperative to advocate for inclusivity and break down the barriers that impede female equality. Companies must prioritize creating environments that foster diversity, equity, and representation at all levels. At Xactly, we regularly conduct pay equity audits to identify and rectify any disparities in compensation based on gender. These audits are crucial in ensuring that our employees are compensated fairly for their skills, experience, and contributions. It's time to move beyond performative gestures and tokenism and embrace genuine transformation in how women are perceived, promoted, and compensated within the Sales landscape.
The report is a comprehensive analysis of data from Xactly's extensive database, covering 89 companies and 37,198 salespeople across eight industries from 2020 to 2023, highlighting both pay and representation disparities that persist in the sales field based on location, industry, experience level, and available opportunities. Stay tuned for more insights and updates on this critical issue.
