Should I Fire an Underperforming Salesman? A Malaysia Guide
2026-10-25 · sgwebsitedesign.com.sg
Quick answerOnly fire him after you have checked the inputs, not just the results. If he had few leads, slow support, or no coaching, the problem is your system, not him. If he had the same leads and tools as the top performer and still failed a written improvement plan, firing is usually the right call.
Is your salesman underperforming, or is the system failing him?
Most underperformance is not a person problem. It is a system problem that shows up on a person's report. Before you decide anything, check what he was actually given: how many leads, from which source, how fast they were followed up, and whether the target was realistic for his area.
A salesman covering a quiet industrial area with 20 leads a month and a salesman in a busy retail location with 200 leads a month are not comparable. If your report does not separate lead volume from closing skill, you are comparing effort with luck.
How many leads did he receive each month, and from which source
You need three comparisons, not one. Him against his own past. Him against the rest of the team. The team against the market.
If the whole team is down, the problem is the offer, the price, or the market. Firing one person will not fix it. If only he is down while others sell the same product in a similar area, that is a real signal.
Look at the shape of the numbers, not just the total. Conversion rate from enquiry to quote. Quote to close. Average deal size. Number of follow-ups per lead. Calls or visits per working day. A man with high activity and low conversion needs training. A man with low activity needs a different conversation.
Lead quality also depends on how you split your ad spend. If his share of the budget buys cheap, low-intent leads, his closing rate will look bad no matter how good he is.
Skill problems look like this: he makes the calls, books the meetings, sends the quotes, and still loses at the same stage every time. He cannot handle price objections, or he never asks for the close. Coaching fixes this, and it often fixes it quickly.
Will problems look different. Activity itself is low. Late logins, missed follow-ups, excuses about traffic and weather, no updates in the system. He may be capable but no longer interested, or he may be running something else on the side.
These two need different responses. Coaching a man with a will problem wastes your time. Firing a man with a skill problem wastes a good hire. Diagnose first, then act.
What should you do before you fire anyone?
Run a written performance improvement plan. It protects the business and it is fair to him. In Malaysia, if a dismissal is later challenged at the Industrial Court, the first thing examined is whether you gave him a fair chance and whether you can prove it.
Set it for 30 to 60 days. Put the numbers in writing: how many leads he will work, how fast he must respond, how many closes he must produce. Meet weekly. Record what was discussed and what support you gave.
Written targets that he signs
Weekly one-on-one meetings with notes
Specific coaching on the stage where he loses deals
A clear statement of what happens if the numbers do not improve
Copies of everything, kept by you
When is firing actually the right decision?
After a documented plan has failed, firing is usually the right call. Keeping a salesman who cannot hit target costs you leads, customer trust, and the morale of the people who have to carry him.
There is also a quieter case worth considering: he is a good person in the wrong role. If he would perform better in support, operations, or account management, moving him is often cheaper than replacing him.
No improvement after a fair, documented plan
Integrity issues such as fake orders, hidden discounts, or false reports
Refusal to follow the sales process
Behaviour that drives away other staff or customers
The role itself no longer exists
How do you terminate fairly and legally in Malaysia?
Follow the contract first. The notice period, or salary in lieu of notice, must match what is written. Under the Employment Act 1955, employees covered by it who have served at least 12 months are also entitled to termination benefits under the Termination and Lay-Off Benefits Regulations. Probationers have fewer protections, but not none.
For misconduct, run a proper domestic inquiry before you decide. For poor performance, the process is the documentation you built earlier. Unfair dismissal claims go to the Industrial Court under the Industrial Relations Act 1967, and the court looks at whether the employer acted with just cause and excuse.
Keep the exit private and factual. Do not announce the reasons to the team. Pay everything owed, including unused leave, on time. Collect accounts, stock, and customer contacts the same day. This is general guidance, not legal advice. Confirm your specific case with the Labour Department or an HR advisor.
Should you replace him, or redistribute his leads?
This is where most companies lose more money than the salary they saved. Leads sitting in a phone that gets returned. Customers who only ever dealt with him. Deals in the pipeline that nobody follows up.
Reassign every open lead within 48 hours and tell the customer who is taking over. Do not let leads rot while you interview.
Do not hire out of panic either. Check pipeline coverage: how many open leads each remaining salesman can work properly. If the team can absorb the leads and still respond within your target time, wait a quarter and hire when you have proof the demand is there. If leads are already going unanswered, hire now, against a written profile of what the role actually needs.
It also helps to have the numbers in one place. When response time, follow-up count, and conversion per lead are tracked in a system instead of in his own notebook, you see the problem months earlier, and the next hire starts with a clean record. That is the kind of performance tracking system we build for sales teams. If you want that visibility in place before your next hiring decision, see our services at sgwebsitedesign.com.sg or contact us to talk through what your team needs to see.
Should I fire an underperforming salesman immediately?
No. Check his lead volume, lead quality, tools, and coaching first. If those were fair and he still missed a written improvement plan, then firing is reasonable. Firing before that check usually replaces one problem with another.
How long should a performance improvement plan last in Malaysia?
Most plans run 30 to 60 days with weekly check-ins and written targets. The length matters less than the record. If the case ever reaches the Industrial Court, your notes and signed targets are the evidence that you acted fairly.
What notice must I give when terminating a salesman in Malaysia?
Follow the notice period stated in his contract, or pay salary in lieu of notice. Employees covered by the Employment Act 1955 with at least 12 months of service may also be entitled to termination benefits. Confirm your specific case with the Labour Department or an HR advisor.
What should I do with his leads and customers after he leaves?
Reassign every open lead within 48 hours and inform the customer who is taking over. Unworked leads and unattended accounts usually cost more than the salary you saved by letting him go.
