In today's Sales landscape, where knowledge and expertise are highly valued, one would anticipate that principles of equality and fairness would prevail. However, we recently conducted research in collaboration with the Stephen Stagner Sales Excellence Institute and the Fowler College of Business that has brought attention to the disparities in pay between genders in the Sales industry, revealing a few troubling trends: women make less, the pay gap widens over time, and men have higher quotas. Read on to learn more.
Gender Pay Gaps in Sales Compensation
In a revealing segment of our findings and through a comprehensive analysis that factors in variables like experience, we found a startling revelation: female salespeople earn less. On average, men earn 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.
The Gender Pay Gap Widens Over Time
The findings shed light on another disconcerting trend: contrary to the expectation that the gender pay gap would diminish with experience, the statistics show that the gender pay gap continues to widen over time. The data reveals at the start of salespeople’s careers, men earn 2.2% more on average than women. After 2 years, this gap widens by 30%. After 5 years, the gap increases even more significantly — with a 77% increase. Furthermore, a glance at the trend over time showcases a disheartening lack of progress, with the gap persisting consistently from 2020 through 2023.
Gender Gaps in Quota Assignments
Assigning quotas for certain groups raises important questions about whether policies might actually make inequality worse instead of better. The data uncovers another troubling reality where men are often allocated larger quotas compared to their female counterparts — resulting in notable implications for their pay scales. On average, male salespeople are assigned 3% higher quotas, and male sales managers are assigned 5% higher quotas. This suggests that men are assigned to higher potential sales territories and higher potential earnings.
As we navigate through the intricate landscape of Sales, it is crucial to confront the uncomfortable truths revealed by these gender pay gap statistics. By acknowledging the prevailing disparities and engaging in informed dialogue, we pave the way for meaningful change and progress toward gender pay equity. Xactly’s CEO, Arnab Mishra, said it best,
“Our research emphasizes the industry's need for systemic change to address the disparities facing women in Sales. Companies can, and should, foster a more equitable and productive Sales environment by recognizing and addressing these issues. 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.”
Through a concerted effort to dissect, analyze, and respond to the statistics and call-outs surrounding the gender pay gap, we take a significant step toward building a more inclusive and equitable professional community for all.
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.
