CASE 9.1 Syntel Inc.: The role of compensation in salesperson turnover
1. Should Syntel enter the small contractor segment with its product? Why or why not?
Technically, Syntel is already serving the small contractor market if we based it on its findings about the said market purchases even if marketing was aimed for in-home market. However, separating this small contractor segment entails a process of market research to really know if the market is large enough and has enough purchasing power to be worth pursuing. Nevertheless, if the in-home market is really saturated, one way the company can expand and cope up with the competition is enter into this new market. Some of the junior salespeople can also specialize on this segment and might get better sales volume since it is still untapped or somewhat neglected. As long as the market is viable and the company has competent salespeople to attend to this new market needs, then there is nothing wrong in pursuing to enter this market.
2. Give some suggestions on how the high turnover problem among Syntel’s junior salespeople might be solved.
Compensation may be a big factor for any person or employee, but that’s not all. A lot could influence the turnover rate of employees. As for the junior salespeople in Syntel, many techniques could be done to lessen its high turnover.
* Provide opportunities for these salespeople to grow his skills, knowledge/expertise, and income. Although it does not mean promotion exactly.
* Put a competent sales manager/s who will hold this team. They should have to be able to assess if they are providing the motivation, coaching, and resources needed for these salespeople to perform. Most importantly, they should never let these salespeople feel that their efforts are taken for granted and unappreciated.
* Incentives, aside from their given compensation, if they deliver superior performance in their tasks.
3. What major questions should be answered before Syntel...