Every sales manager eventually faces the same challenge:
a salesperson who isn’t hitting their numbers.

Handling underperforming sales reps is one of the hardest — and most important — responsibilities in sales management. Do it poorly, and you risk losing revenue, morale, and credibility. Do it well, and you can turn struggling reps into consistent performers, strengthen team culture, and protect long-term growth.

This article provides a complete, practical framework for handling underperforming sales reps, from early detection and diagnosis to coaching, performance improvement plans (PIPs), motivation, and — when necessary — separation.

1. Why Underperformance Happens in Sales

Before acting, managers must understand a critical truth:

Most underperformance is a systems problem before it’s a people problem.

Sales reps rarely fail because they want to fail. More often, failure results from:

• unclear expectations

• poor onboarding

• weak coaching

• territory issues

• skill gaps

• confidence loss

• misaligned incentives

Jumping straight to discipline without diagnosis is a management failure.

2. The Cost of Ignoring Underperformance

Unchecked underperformance leads to:

• missed revenue targets

• inaccurate forecasts

• resentment from top performers

• lowered standards

• culture erosion

One weak link tolerated too long becomes a signal that mediocrity is acceptable.

3. Early Warning Signs of Underperformance

Good managers detect issues before quotas are missed.

Common early indicators include:

• declining activity levels

• stalled deals in the pipeline

• poor follow-up discipline

• defensive behavior in reviews

• CRM neglect

• loss of confidence or engagement

Early intervention is easier than late correction.

4. Separate Results from Effort

Not all underperformance is equal.

Ask:

• Is the rep working hard but ineffective?

• Or disengaged and inconsistent?

A rep with strong effort but weak results needs coaching.
A rep with weak effort needs accountability.

5. Step One: Diagnose the Root Cause

Never assume. Diagnose.

5.1 Skill Gaps

Common skill gaps include:

• poor discovery

• weak objection handling

• ineffective closing

• lack of product knowledge

Skill gaps require targeted training, not pressure.

5.2 Activity Deficiency

If activity is low:

• prospecting habits may be weak

• time management may be poor

• motivation may be declining

You can’t coach outcomes without input.

5.3 Process Misalignment

Reps may struggle because:

• sales stages are unclear

• qualification criteria are weak

• handoffs are broken

Fixing process often fixes performance.

5.4 Territory or Lead Quality Issues

Underperformance may reflect:

• low-potential territory

• poor lead distribution

• uneven opportunity access

Managers must assess fairness before assigning blame.

5.5 Confidence and Mindset Issues

Sales is emotional.

Confidence drops after:

• repeated losses

• public pressure

• comparison with top reps

Confidence issues require support, not threats.

6. Step Two: Set Clear Expectations

Many performance issues stem from ambiguity.

Managers must clearly define:

• activity expectations

• pipeline targets

• conversion benchmarks

• behavioral standards

If expectations aren’t written and reviewed, they aren’t real.

7. Step Three: Have the Performance Conversation

Avoiding the conversation makes things worse.

7.1 How to Start the Conversation

Effective opening:

• calm

• factual

• non-accusatory

Focus on data, not personality.

7.2 What to Avoid

❌ vague criticism
❌ emotional language
❌ comparisons to other reps
❌ surprise accusations

The goal is clarity, not intimidation.

7.3 Shared Ownership

High-quality conversations include:

• manager accountability

• rep perspective

• collaborative problem-solving

Performance improvement is a partnership.

8. Step Four: Build a Coaching Plan

Coaching plans should be:

• specific

• time-bound

• measurable

8.1 Targeted Skill Coaching

Examples:

• role-playing discovery calls

• call reviews

• deal deconstruction

• objection-handling drills

Generic coaching produces generic results.

8.2 Activity Reset

Managers may need to:

• rebuild daily routines

• block prospecting time

• enforce follow-up discipline

Structure restores momentum.

8.3 Shadowing and Peer Learning

Pair underperformers with:

• top reps

• mentors

• team leads

Learning accelerates through observation.

9. Step Five: Use a Performance Improvement Plan (PIP)

A PIP is not punishment — it’s structure.

9.1 When to Use a PIP

Use a PIP when:

• informal coaching hasn’t worked

• expectations are repeatedly missed

• timelines need clarity

9.2 What a Good PIP Includes

A strong PIP defines:

• current performance gaps

• specific improvement goals

• daily/weekly actions

• support provided

• review checkpoints

• timeline (30–90 days)

Ambiguous PIPs fail.

9.3 Tone of a PIP

The tone should be:

• firm

• fair

• supportive

PIPs should feel like a last structured opportunity — not a trap.

10. Step Six: Monitor Progress Closely

During improvement periods:

• increase check-ins

• review metrics weekly

• give real-time feedback

Silence during a PIP equals abandonment.

11. Motivation vs Accountability

Managers often confuse the two.

11.1 When to Motivate

Motivate when:

• effort is high

• skills are developing

• attitude is positive

Encouragement fuels persistence.

11.2 When to Enforce Accountability

Enforce accountability when:

• commitments are broken

• effort is inconsistent

• standards are ignored

Compassion without standards is neglect.

12. The Role of Compensation in Underperformance

Underperformance may be driven by:

• unrealistic quotas

• unclear commission rules

• low perceived upside

If reps don’t believe the plan is fair, effort drops.

13. Psychological Safety and Performance

Reps perform better when:

• mistakes are treated as learning

• feedback is consistent

• pressure is balanced

Fear-based management produces short-term compliance, not growth.

14. Common Manager Mistakes with Underperformers

❌ waiting too long to act
❌ being vague
❌ over-coaching without accountability
❌ under-coaching with threats
❌ rescuing deals instead of coaching skills

Avoiding discomfort increases failure rates.

15. When Performance Improves

If the rep improves:

• acknowledge progress

• reinforce behaviors

• gradually reduce oversight

Success should feel earned and recognized.

16. When Performance Does NOT Improve

Sometimes, despite best efforts, improvement doesn’t happen.

This may indicate:

• role mismatch

• lack of aptitude

• low intrinsic motivation

Not everyone belongs in sales — and that’s okay.

17. Knowing When to Let a Rep Go

Letting a rep go is appropriate when:

• expectations were clear

• support was provided

• timelines were honored

• standards remain unmet

Delaying inevitable exits harms everyone.

18. Handling Termination Professionally

Terminations should be:

• respectful

• private

• direct

• documented

Protect dignity — even in failure.

19. Team Impact of Handling Underperformance Well

When managers handle underperformance properly:

• standards stay high

• top performers feel protected

• trust increases

• culture strengthens

The team is always watching.

20. Preventing Future Underperformance

Prevention strategies include:

• better hiring

• structured onboarding

• consistent coaching

• clear metrics

• fair territories

Prevention is cheaper than correction.

21. Hiring to Reduce Underperformance

Reduce risk by:

• assessing coachability

• testing sales skills

• setting realistic previews

Hiring mistakes are management mistakes.

22. Onboarding and Ramp Expectations

Many reps fail due to:

• rushed ramp timelines

• unclear milestones

Structured onboarding increases success rates.

23. Role Clarity and Expectations

Reps should always know:

• what success looks like

• how it’s measured

• where they stand

Clarity reduces anxiety and excuses.

24. Managing Remote Underperformance

Remote reps require:

• outcome-based metrics

• frequent communication

• trust with verification

Distance magnifies weak management.

25. Cultural Differences and Performance

Be aware of:

• communication styles

• feedback preferences

• motivation drivers

One-size-fits-all management fails diverse teams.

26. The Emotional Toll on Managers

Managing underperformance is stressful.

Managers must:

• stay objective

• avoid personal frustration

• seek peer support

Burned-out managers make poor decisions.

27. Legal and HR Considerations

Ensure:

• documentation is consistent

• policies are followed

• HR is involved when needed

Process protects fairness.

28. Metrics That Matter Most

Key indicators include:

• activity vs results

• pipeline coverage

• conversion rates

• improvement trend

Look for trajectory, not perfection.

29. A Simple Framework to Remember

Diagnose → Clarify → Coach → Structure → Decide

Skipping steps leads to failure.

30. Final Takeaway

Handling underperforming sales reps is not about being “nice” or “tough” —
it’s about being clear, fair, and consistent.

The best sales managers:

• address issues early

• diagnose before judging

• coach with intention

• enforce standards without cruelty

Some reps will rise.
Some won’t.

Your responsibility is not to save everyone —
it’s to build a healthy, high-performing sales organization.