Bridging the Gender Pay Gap With Automation

October 21, 2022
Diya Mathur
Diya Mathur
Diya Mathur
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Full-time working women in the U.S. earn 83 cents for every dollar earned by their male counterparts. Black women in particular, are paid 58% of what white men earn. Similarly, Latinas fared no better and were paid a shocking 57% of what the average white man was paid. The statistics are shocking and the verdict is in!

The way we look at Gender Pay Equity needs thoughtful reimagining.

There is no doubt that the gender pay gap is a pressing issue, and it has only worsened since the pandemic. More women have dropped out of the workforce and more women have been underpaid since then. 

Unfortunately, even sales has not quite hit the mark when it comes to tackling pay equity-

  • Women in sales roles earned 17 percent less than men in sales roles.
  • Men earned a 4.8 percent commission rate, while women earned only 4.1 percent.
  • Women in direct sales roles earned 22 percent less than their male counterparts. 
  • The pay gap widened further in sales leadership roles, where women earned 25 percent less than men.

Addressing the gender pay gap within the sales pipeline funnel is a multifaceted challenge that necessitates robust and inclusive solutions. Closing this gap requires collective efforts, but it is indeed achievable. Sales comp automation emerges as a valuable tool in this endeavor, offering an effective step towards narrowing the gender pay gap.

Sales Comp Automation tools are essential mirrors for organizations, providing valuable insights into sales performance management, and can support businesses in realizing pay equity and building more equitable workplaces. By identifying potential biases and nipping them in the bud, these sales comp solutions are perfect for modern workplaces that strive for equity and aim to enhance sales team productivity.

So, how exactly can automation be a game changer in your pay equity journey?

Leveraging Accurate Data

Let your data drive the change! Your data is much more than just numbers and decimal points. It can reflect historical biases and point out disparities in pay. It’s one step forward and two steps backward if you have enough data but do not trust it.

In fact, 84 % of CEOs don’t trust the data that they are basing their decisions on according to Forbes. 

If you are relying on spreadsheets to compensate your employees, chances are you are spending hours entering data points manually into a spreadsheet that is likely to be error-prone more than 80 per cent of the time. All it takes is one wrong keystroke! Try to minimize errors by reducing manual input and automating your data capturing process. 

The data that you are feeding your CRM needs to be gap-free and have all the relevant information. Remember, the end goal is to have a data set large enough to be turned into actionable insights. 

Pay Transparency and Real-time Insights

Updating spreadsheets is a manual process and most companies prefer to do this only once a month. By releasing sales data from the silos of spreadsheets, an automated incentive compensation solution can act as a trusted advisor for your sales reps by addressing the issue of pay equity in a more transparent manner. 

A report conducted by Forrester published in Forbes reveals that a staggering 90% of growth leaders believe that real-time insights are important. With real-time commission trackers, each rep can get a personalized dashboard with real-time updates as they move closer to their quota and specific goals. 

Allowing your sales team to automate their performance and plan their earnings and milestones for themselves will significantly increase their visibility and restore trust in the organization. 

Frequent Reports

How do you bridge the gap between having data and using it? Traditionally, data is compiled from multiple spreadsheets throughout the quarter and is analyzed at the end of the quarter to create a roadmap for the future. 

While this sounds simple, the truth is  that this is a mammoth task when done manually. Any errors in these spreadsheets can completely throw off your organization’s predictions and you may find yourself struggling to make decisions.

In fact, 55% of sales companies don’t trust their forecasts. When expected to take strategic real-time decisions, growth leaders cannot be expected to rely only on their ‘gut instinct’ and multiple data points for scenario planning. A more scientific approach using an automated Incentive Compensation Management tool for incentive modeling and payout projections is the way to go. 

How can automating your sales comp with Kennect help? 

It’s true that the road to pay equity is complex, but it’s worth it. We are making progress and it’s crucial to keep the momentum going  so we can ensure fair pay and equal opportunity. Automation alone isn’t enough to deal with this mammoth issue, but it can provide organizations an opportunity to address the inequalities in pay structure and take the first steps towards ensuring fair pay. 

Kennect’s ICM solution provides real-time updates on your sales compensation program with a No-code plan builder that helps you customise your IC plans and deliver at 100% accuracy!

Having real-time insights on sales numbers and the performance of each of your sales reps can help you understand and make crucial changes before it's too late! Book a demo with us today!


Diya Mathur

Diya is a Product Marketing Associate and content writer specializing in Incentive Compensation Automation. Diya has honed her ability to bridge the gap between intricate software functionalities and accessible, reader-friendly content. Her articles are a testament to her dedication to breaking down intricate SaaS solutions into digestible insights that cater to both tech-savvy professionals and those new to the software landscape.


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