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180: Women in Sales Paid Less, Stay Longer, Produce Better Results, with Megan Ackerson, CHRO, Xactly
08/28/2024
180: Women in Sales Paid Less, Stay Longer, Produce Better Results, with Megan Ackerson, CHRO, Xactly
Xactly is a tech platform for assisting companies with compensation and forecasting with the sales team, and has been around since 2005. They started sharing research about men in sales roles versus women in 2014 or so - quite some time ago, and just released their 2024 research results which includes the following: ● 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. Follow for more research, interviews, and recommendations to add more women into sales and sales leadership roles. Sign up for our newsletter for 2x month insights, ideas, and stories - and submit your own! Sign up: Contribute: Past News Issues:
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