The gender pay gap is not a new topic of discussion. In fact, it is something that makes headlines on a regular basis and, in procurement, is highlighted every year in the Procurement Leaders Salary Survey. The reasons why such a gap exists are often inconclusive and speculative at best.
Women’s salaries in procurement, on the whole, stand at an average of just 75% of men’s salaries by job role. However, at the buyer level, women earn more than 106% of their male counterparts, according to the survey. With this inequality reversed for the higher-level roles, at what point in the career does this pay inequality surface?
In the next role up from buyer, that of a regional category manager, women’s pay drops to 82% of men. Based on the report’s findings, there is one possible explanation for this: as women progress through their careers, the number of reports they have stagnates.
At the buyer level, the number of reports for both males and females is similar, but as people move on and up, this gap widens significantly.
“Considering that one of the strongest indicators of salary is the number of reports, the fact that men at almost all age levels oversee the work of a larger number of subordinates is particularly problematic,” explains Procurement Leaders’ research analyst, Alex Johnston.
Management experience may be one factor, but delving deeper into the salary survey data suggests there are other factors at play too.
Segmenting the pay of male and female procurement professionals by industry shows that there are some significant differences.
When looking at the overall average picture of salary data, the public sector and not-for-profit industry offer women the highest salaries, compared to their male counterparts, at 94%. At the other end of the scale, women can expect to earn just 67% of male salaries in the manufacturing sector.
While this data compares salaries of all female and male procurement professionals in a particular industry, when we look at industry salaries by job role average, the picture is even more stark.
In the business services industry women earn 137% of their male counterparts’ salaries when comparing like-for-like job roles, but just 75% when comparing across the industry ...