Stop Gender Pay Dead In Its Tracks!
January 29, 2015
Pay based on gender has always been a hot and touchy subject and there continues to be argument that men do, on average, get paid higher than women. However, the sales world is not what is used to be, a career that was once dominated by men. In fact, more and more women are not only starting to surpass men in the amount of education that they have, they are starting to enter into various types of sales roles. As a result of this shift, how are organizations able to shorten the gap between how much their sales representatives are compensated, regardless of gender?
What is a result of this shift?
The Changing Face of Sales: Here Come The Girls provides some interesting points to why women are starting to make a shift in the type of jobs and roles that they enter. While diversity is a contributing factor, women offer a different strategic point of view and a new fresh perspective on various topics that employers now view as a key differentiator when they are fishing through a pool of candidates. Men and women do think differently, which is opening up the opportunity for organization to build strong, goal-orientated teams that are able to define success and deliver results.
You would think that with gender job roles shifting and the benefit that mixed sales teams provide to an organization, there would also be a shift on how individuals are compensated. So, why is there is there still a pay gap? Facts even prove that women tend to exceed men in various types of roles and environments.
What are the pay differences?
According to the Wall Street Journal, Xactly Corporation, one of OpenSymmetry’s SPM Partners, has provided a great deal of insight into this area through their own software, Xactly Insights and customer data. What are the results?
- Even though women tend to out perform men in sales roles, on average, their commission rates tend to be approximately 1% less than men
- Men’s based pay is approximately $25,000 more than women
- Women tend to out perform men when looking at sales effectiveness, as well as when they are in general management roles
This type of pay discrepancy is also occurring in Europe. According to one 2013 report, women tend to make approximately 18% less than male counterparts with the same level of education. However, while there has been some improvement throughout the past couple of years, statistics show the closing of the pay gap doesn’t seem to happening any time soon.
What can Organizations do to close the Pay Gap?
There are many factors that contribute to how someone is compensated and we all know the basics that are easy to identify and measure: years of experience, average pay for the position that you are in, location, etc. but your gender should definitely not be one because this factor is something that is truly out of our control.
As HR or business leaders how do you manage your organization to align or even close the gender pay gap? Visibility is the first key in identifying areas for improvement and taking action whether it’s a gender pay gap, new business lines, territories or other performance gaps including onboarding, enablement, & training, programs. Integrating HCM & SPM is the ideal answer. Through the use of these technologies, organizations are able to monitor and track employee’s pay and compensation correctly based on certain factors such as, territory and quota management, as well as have the ability to set up appropriate incentive compensation programs based on performance. Success of your sales representatives is also dependent upon a variety other factors, including how well they perform their duties and whether or not they are truly meeting their sales quotas, in turn creating a balanced and competitive sales environment.
CallidusCloud’s integration with sales enablement for onboarding and ICM along with IBM Kenexa for talent management and Cognos ICM makes a strong combined solution for any organizations. Xactly Incent, Objectives (MBO) and Insight provides both the tactical and planning insight for benchmarking. These technologies also work within a variety of platform stacks such as the Salesforce.com ecosystem, which makes enabling other technologies like FinancalForce, and Anaplan easily integrated to provide cohesiveness across all technologies. This alignment helps support the need to have complete visibility at any level of the organization, from sales, finance and HR.
As a full-serviced, software-agnostic consulting partner, we help you identify the right solution for your business requirements across SPM, HCM and CPM with a comprehensive set of solution offerings and the leading success rate on delivering rapid results. Our number one priority is for our customers to achieve real results from the solution that they choose while mitigating problems every step of the way, from Strategy to Success. Contact OpenSymmetry today to learn more about the services that we offer and how we can help your organization achieve rapid results.
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