San Jose, CA, July 23, 2024 – Xactly, a global leader in intelligent revenue solutions, today announced new research shedding light on the significant challenges and disparities faced by women in the sales profession. The findings, in conjunction with the Stephen Stagner Sales Excellence Institute at the University of Houston and professors from Fowler College of Business at San Diego State University, underscore the need for greater inclusivity and support for women in advancing their sales careers. The research uncovered that women are significantly underrepresented in the sales industry, constituting only 34% of the sales force and a mere 29% of sales managers.
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.
“Our research emphasizes the industry's need for systemic change to address the disparities facing women in sales,” said Arnab Mishra, CEO of Xactly. “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.”
Key findings from the research include:
- Representation disparities: The gender ratio in sales is alarming. Women are underrepresented in sales roles, constituting only 34% of the sales force and only 29% of sales managers.
- 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.
- Pay gaps widen over time: 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.
- The gaps differ from industry to industry: The pay gap varies significantly across sectors, with female sales professionals in the Life Sciences and Pharma space reporting a 9% gap in pay and Manufacturing space with an 8% gap. It might be more opportune for women in sales to enter the Financial Services industry, where no pay gap was reported.
- State-by-state disparities: The state sales people live in seems to correlate with the pay disparities. Colorado and New Jersey hold the largest pay gap between men and women at 7%, with Georgia and Washington claiming the lowest pay gap at 1%.
- Performance remains unaffected: Despite the overwhelming disparities in representation and pay, female sales professionals consistently outperformed their male counterparts. Female salespeople outperformed men by 1.5%, and female sales managers outperformed by 3%.
- Loyalty is not a factor: Women tend to show greater loyalty to their Sales teams, staying with the same organization on average four months longer than their male counterparts.
- Unfair impact on quota assignments: Many organizations do not seem to recognize women’s higher performance. On average, male salespeople are assigned 3% higher quotas, and male sales managers are assigned 5% higher quotas, suggesting that sales teams assign men to higher potential sales territories or opportunities.
“There are a couple of reasons why people argue the pay gap doesn’t exist – for example, women not performing well or women more likely to leave jobs for things such as family or child care obligations,” said Mike Ahearne, Professor, and C.T. Bauer Chair in Marketing at the C.T. Bauer College of Business, University of Houston. “However, the data tells us otherwise: women not only outperform men but are more loyal. If firms looked at pay based on performance, women would be paid more.”
To read the full research findings, read the first State of Women in the Sales Industry blog here, and stay tuned for more to come in the series. For more information about Xactly, please visit https://www.xactlycorp.com/company/contact-us.
*These are adjusted numbers, comparing male and female salespeople in the same time period, living in the same state, holding equal job titles, with equal experience, and working in the same industry (see methodological details down below).
Methodology:
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 field.
To compute adjusted pay gaps, the analysis compares male and female salespeople in the same time period, living in the same state, holding equal job titles, with equal experience, and working in the same industry. Taking these factors into account helps isolate the effect of gender bias or discrimination. Not considering these important factors results in an unadjusted pay gap, which captures overall pay disparities without considering the underlying reasons. For example, unadjusted pay gaps can result from factors such as women populating lower-paying job titles in sales organizations as a result of promotion opportunities. Variable pay is defined as performance-based pay (bonuses, commission, etc.).
About the Stephen Stagner Sales Excellence Institute at the University of Houston:
The Stephen Stagner Sales Excellence Institute at the University of Houston is dedicated to advancing the field of sales through research, education, and partnerships with leading organizations. Our mission is to develop the next generation of sales leaders and drive excellence in sales practices.
