Tag Archives: pay gap

5 Steps Leaders Can Take To Close The Gender Pay Gap In Procurement & Supply Chain

The good news is, women are breaking the glass ceiling and moving up the ranks in Procurement and Supply Chain – the bad news is, their pay doesn’t necessarily reflect their achievement. How can leaders halt this divergence and close the pay gap?


Women Leaders who are Moving Mountains

Women are becoming more successful in 2020 than ever in moving into high level positions within major organisations.

According to the Cataylst Org. “In 2019 (2020 the percentage was unchanged), the proportion of women in senior management roles globally grew to 29%, the highest number ever recorded.

Therefore, women are breaking the glass ceiling in terms of ‘moving up the ranks’, but are we seeing the same with our pay? And what about women within the procurement and supply chain function?

Are both increasing in parallel, or is there an even bigger divergence amongst women in senior level roles?

Well, if you’ve read any of the earlier Procurious blogs, you’ll know that unfortunately women looking for equal pay, is still a thing. The article cites that results reported by CIPS indicates that the “average pay gap in the profession overall narrowed slightly to 21% in 2019.” When women are promoted to a higher position, this gap increases significantly.

To make things even worse, the gender pay gap for a senior position for women has risen to 35% in 2019. And when looking at the pay range, it can be upwards of +£23.2k difference.

So, despite the appearance of promotion and equality moving into the Executive levels, the pay is still lagging far behind. Not really a win-win situation for women (quite infuriating if you ask most of us).

Therefore, what can be done to help close and not exasperate this difference? And what can leaders in procurement and supply chain do to try and make a change for future generations?

Making the Mountain Climb worth the Effort

Seeing the huge disparity in senior level roles will only further detract women from the industry, which would only leave us at a huge disadvantage. According to American Express OPEN, growth in women-owned businesses has outpaced the overall increase in new businesses by 1.5 times.

Therefore, everyone within the procurement and supply chain function must do their part to close the gap (and make the climb worth the effort) for women globally.  So just how can we do that?

Well, I’m glad you asked. Here are five basic steps any leader can take to help create equality for women.

1. Promote Wisely

When promoting women into higher positions, make sure they are not at the bottom of the pay scale.  Make sure you or your HR partner does a benchmark pay assessment internally and externally to ensure fairness across the position.

2. Stop the Pregnancy / Child Penalisation

From personal experience, the way a company treats women going out on pregnancy leave can be drastically different.

In one company I was penalised monetarily (pro-rated) in my bonus, pay, and other compensation for taking off time. In the other, when I came back from leave, I was promoted, and got full bonus and salary increase.

In both cases I didn’t even take the full six months allowed for in the state, only taking four months each time. But the disparity in pay, bonus, and other compensation is how women end up behind the curve. And something companies should not take lightly.

3. Encourage Talented Women Professionals to Switch Professions

If you have a business partner who is great at marketing, supplier negotiations, or has a breadth of experience with an executive presence, go after her to come and experience procurement or supply chain!

In many organisations you will find extremely talented women without direct procurement experience, but very aware of the processes and policies. That’s what we like to call potential, especially when other functions tend to pay women more than procurement/supply chain.

They’ll take with them this increase in salary/bonus and carry it forward into the industry. A win-win for orgfanisations and women alike.

4.    Make Multiple Women Mentors a Standard

Do you know what’s great? One-woman mentor. Do you know what’s even better? Multiple women mentors! Why?

Not all women have the same issues, and not all will connect. It’s like any other relationship. Therefore, having not just one but multiple mentors across the organization.  Expediting the learning and leadership process, can only help propel women into higher paying opportunities.

Do what you need to go out of your way to help women employees to connect with.

5. Transparency in Salary

If you happen to live in the US, this practice of sharing pay information is actually protected by law (Department of Labor). But if you aren’t, there are still other resources – Glassdoor.com, LinkedIn Salaries, etc.

Why is this useful? Well if can arm yourself with the information of pay range, you are less likely to underpay women or miss out on giving them fair pay from the start.

And if you are a woman looking for a new job or making a switch, it gives you the leverage during salary negotiations. So even if an employer doesn’t want to give you a pay range, you can easily figure out how much they value you when they do. Information in this day and age is truly priceless!

Procurement Pay Gap Shock

The gender pay gap in procurement and supply management has INCREASED, according to US and UK survey results released this week. Have you sponsored your own internal gender salary gap analysis?

Ever considered how procurement salaries measure up with the rest of the working world?

Are you suspicious that your  procurement colleagues might be getting a better deal than you?

If you’re a woman working within procurement and supply chain, have you ever wondered how glaring the pay gap is within your industry or organisation?

This week, ISM’s Twelfth Annual Salary Survey in the US and the CIPS/Hays Salary Survey in the UK have shed some light on all of the above. Whilst there’s clearly still a very long way to go in terms of the  gender pay gap (predicted to take another 170 years to close), things are otherwise looking pretty comfortable for the procurement and supply chain profession….

ISM Salary Survey Results

Now would be a great time to convince your boss you deserve that pay rise, because the Institute for Supply Management’s (ISM) Twelfth Annual Salary Survey has been released. The results are based on data from 3808 supply management professionals who were surveyed throughout February and March 2017 to determine these average salaries:

Average Salary: $115,440

Median Salary: $90,000

Average for Men: $126, 710

Average for Women $96,990

In the US, a person working in professional, management or related occupations earns an average of $63,076 annually, which means these results are pretty good news for the supply management profession.

The figures show a 5 per cent increase in average compensation since 2015. Men’s salaries have risen by 8.2 per cent and women’s by 3 per cent.

The super bad news is that procurement appears to be taking a step backwards with regards to equal pay. In 2015 women earned 24 per cent less than men, compared with 31 per cent this year.

Download a summary of the report here.

UK Pay Gaps Revealed

It’s not just ISM’s figures proving to be disappointing in terms of gender equality.

As of last month, UK organisations employing more than 250 people are obliged to publish their gender pay gap figures.

Virgin Money disclosed that men who work at the bank earn, on average, 36 per cent more than women, asset manager, Schroders, reported a  31 per cent gap and Utility SSE a 24 per cent gap.

Some are against the new legislation arguing that the numbers don’t give a full picture and place all the blame in the hands of the employers. Others are in favour of the full disclosure and think it will spur organisations and governments to crack down harder on gender inequality.

McKinsey’s Global Institute report found that $12 trillion could be added to the Global GDP by 2025 by advancing women’s equality, which is as good a reason as any to close the gap, pronto!

UK Procurement Salaries Outstrip Average

The CIPS/Hays Salary Guide and Insights 2017 has surveyed over 4,000 procurement employers and employees to learn everything from key trends in salaries to challenges faced by employers and the top benefits desired by procurement professionals at all levels of seniority.

Whilst the average annual UK pay increase is 2.2 per cent, procurement professionals in the UK are receiving an average of 5.3 per cent more! Jacki Buist, writing on Supply Management, believes the results show a “continuing enthusiasm for the profession in all regions.”

Unpredictably,  the cause for concern falls once again in the region of gender disparity. Overall, the pay gap is reducing but at the advanced professional level, men receive an average  of £82,000, compared with a woman’s £65,700.

Registrations are open for the CIPS/Hays Procurement Salary Guide and Insights 2017 Webinar, which takes place on Thursday, 11 May 2017 13:00 GMT.

Are you surprised by the figures released in these two surveys? How do you think the UK’s new legalisation will impact the fight for equal pay? Let us know in the comments below.

In other  news this week….

Google Customers Subject to Phishing Attack

  • Google customers have been targeted with a scam that gave hackers access to the contents of emails, contact lists and online documents of victims
  • On opening a given link, Google’s login and permissions page asked users to grant the fake Docs app the ability to “read, send, delete and manage your email”
  • Google has now shut down the attack but have asked customers who received such an email to flag it to them.
  • Victims have been advised to change the passwords to their online accounts

Read more on The Telegraph

Amazon to Expand in the UK

  • Amazon is adding 400 staff to a new research and development centre focused on machine learning, in a move that reinforces the retail group’s long-term investment in the UK
  • The lab will develop  the voice-activated Echo speaker and Prime Air drones
  • By the end of this year, Amazon plans to add another 5,000 British employees to its payroll, open a new 600,000 sq ft headquarters in central London, and operate three new fulfilment centres around the country

Read more on the Financial Times

The future of Blockchain

  • Put simply,  blockchains take out the middle man (banks) and make the transfer of funds more streamlined and safe
  • The United Nations (UN) used one particular blockchain, Ethereum, to distribute funds from the World Food Program (WFP) in a pilot program earlier this year. The experiment successfully, distributed aid to 100 people in Pakistan
  • The system will now be used in Jordan to distribute funds to more than 10,000 people. It’s expected to help support 500,000 recipients by 2018

Read more on Futurism