Every sales team has high performers, average performers, and, inevitably, underperforming reps. How a sales manager addresses underperformance can make the difference between a struggling team and one that grows stronger together. Handling underperforming reps is not just about hitting quotas—it’s about coaching, accountability, and fostering long-term success.
The most effective sales managers approach underperformance strategically, combining empathy, data-driven analysis, and structured interventions. This article outlines how a sales manager should handle underperforming reps while maintaining team morale, boosting confidence, and improving overall results.
Understanding the Root Causes of Underperformance
Before taking action, it’s critical to understand why a sales rep is underperforming.
Common Causes Include:
Lack of skills or knowledge: Reps may need coaching in prospecting, closing, or product expertise.
Motivation issues: Personal circumstances or disengagement can affect performance.
Process or system challenges: Inefficient workflows or poor CRM usage can hinder results.
Market conditions: Unfavorable territories, competition, or product-market fit issues may impact sales.
By diagnosing the cause, a sales manager can address the problem appropriately rather than applying generic pressure.
Approaching Underperformance With a Coaching Mindset
Handling underperforming reps is most effective when approached as a development opportunity, not punishment.
Focus on Growth, Not Guilt
Instead of criticizing or blaming, ask questions like:
What challenges are you facing in your deals?
Which skills do you feel you need to improve?
How can I help you overcome obstacles?
This approach fosters trust and encourages collaboration.
Tailor Coaching to Individual Needs
Each rep is different. Some need hands-on skill-building, while others need motivational support or guidance in time management. Personalized coaching plans create measurable improvement paths.
Using Data to Guide Conversations
Data provides objectivity and clarity in managing underperformance.
Track Metrics That Matter
Identify performance gaps through key metrics such as:
Conversion rates
Pipeline progression
Activity levels (calls, meetings, proposals)
Deal velocity
Use Data to Support, Not Punish
Present data as insight rather than criticism. For example: “I noticed your conversion rate is lower than the team average—let’s analyze your approach to see how we can improve.”
Setting Clear Expectations and Action Plans
A structured plan helps underperforming reps understand what is required and how to improve.
Define Specific, Achievable Goals
Set short-term, measurable objectives to create early wins.
Link goals to overall team targets to reinforce accountability.
Create a Timeline for Improvement
Establish regular check-ins (weekly or bi-weekly) to track progress.
Adjust strategies based on results and learning.
Document Commitments
Clearly recording goals, actions, and expectations ensures transparency and shared accountability.
Providing Continuous Feedback and Support
Ongoing feedback separates effective management from reactive interventions.
Schedule Regular One-on-Ones
Frequent coaching sessions keep reps on track and demonstrate that management cares about their growth.
Offer Immediate Recognition of Improvement
Small wins build confidence and reinforce positive behavior. Highlight improvements publicly or privately, depending on the individual’s preference.
Encourage Peer Learning
Pair underperforming reps with high performers for mentoring, shadowing, and collaborative learning.
Addressing Motivation and Mindset
Performance issues are often tied to mindset rather than skills.
Identify Motivation Barriers
Talk to reps about what drives them. Misalignment between personal motivation and role expectations can reduce performance.
Reignite Confidence
Underperforming reps often lose confidence. Celebrate past successes, focus on strengths, and provide achievable steps to rebuild momentum.
Knowing When to Escalate
Not every underperforming rep will improve despite coaching and support.
Signs That Further Action May Be Needed
No measurable progress after a structured improvement plan
Lack of engagement or accountability
Persistent behavior that undermines team performance
Balancing Empathy With Accountability
Even in difficult cases, maintain professionalism and fairness. Document efforts, communicate clearly, and, if necessary, follow organizational protocols for performance management.
Creating a Culture That Supports Improvement
Handling underperformance effectively isn’t just about the individual—it affects the entire team.
Foster Psychological Safety
Reps must feel safe to discuss challenges and mistakes without fear of ridicule or immediate penalty.
Normalize Learning From Failure
Encourage a culture where setbacks are viewed as opportunities to improve, share lessons, and strengthen team resilience.
Promote Transparency and Fairness
When performance standards and coaching approaches are applied consistently, the team trusts leadership and stays motivated.
The Role of Leadership in Turning Underperformance Into Growth
Effective sales managers recognize that leadership determines outcomes in underperformance situations.
Lead by Example
Demonstrate accountability, persistence, and composure under pressure. Reps emulate the manager’s approach.
Invest Time Strategically
Top managers dedicate time to coaching underperforming reps rather than only focusing on top performers or administrative tasks.
Celebrate Progress Publicly
Acknowledging improvement reinforces the value of effort and motivates others to embrace growth mindsets.
Conclusion: Turning Challenges Into Opportunities
Underperforming reps are not a liability—they are opportunities for leadership, development, and team growth. How a sales manager handles these situations can determine not only the rep’s future success but the overall performance and culture of the team.
By diagnosing root causes, coaching with empathy, using data strategically, setting clear expectations, and fostering accountability, sales managers can transform underperformance into improvement. Strong leadership turns struggles into confidence, confidence into competence, and competence into measurable results.
Ultimately, handling underperforming reps effectively separates average sales managers from exceptional leaders who build resilient, high-performing teams.
