Should I Fire an Underperforming Salesman? A Malaysia Guide
2026-10-27 · Pomegranet AI
Quick answerNot immediately. First prove the gap is real by checking his leads, his activity and the support he was given. If the numbers stay the same after fair leads and a written improvement plan, firing is usually the right call, and in Malaysia the paperwork you kept along the way is what protects you.
Is it the salesman, or is it the leads?
Before you decide anything, separate the person from the system. A salesman who gets ten unqualified leads a week will always look worse than a weaker salesman who gets thirty warm ones. If you cannot say who received which leads, you are not ready to judge performance yet.
Look at three numbers: how many leads he received, how many he contacted, and how many closed. If the first number is low or uneven, the problem may be your lead flow, not him. If he received a fair share and still did not follow up, that is on him.
What does underperforming actually mean in your business?
Underperforming is not a feeling. It is a gap between what you expected and what happened, measured over a period long enough to be fair. Write it down before the conversation: the target, the actual result, and the time frame.
For most Malaysian sales teams, the useful measures are the number of leads worked, response time to new enquiries, number of quotes or proposals sent, and closed deals. Activity numbers tell you whether he is trying. Result numbers tell you whether it is working. You need both, because high activity with zero closes usually points to a skill or product problem, while low activity with zero closes usually points to a discipline problem.
Have you given him what he needs to succeed?
Many underperforming salesmen were never properly set up. Ask yourself honestly: did he get product training, a pitch that works, a clear target, and a way to see his own numbers? Did anyone senior sit with him through his calls and follow his WhatsApp replies for a week?
If the answer is no, fix that first. Give a defined period, often four to eight weeks depending on your sales cycle, with weekly check-ins. Write down what you agreed. If he improves, you saved a hire. If he does not, you now have a fair and recorded reason to act.
Uneven lead distribution is the most common reason a salesman looks weak. If one person gets the inbound WhatsApp enquiries and another gets the cold list, their closing rates will never be comparable. Before you fire anyone, check whether leads are shared by a rule or by habit.
A simple rotation, a clear rule for who gets which type of lead, and a shared record of who received what will show you the truth within a month. If the numbers stay the same once the leads are fair, the problem is the person.
What should a performance improvement plan look like?
A performance improvement plan is not a punishment. It is a written agreement with a deadline. Keep it to one page and make it specific.
Include the exact gap, the target to hit, the support you will provide, the review dates, and what happens if the target is not met. Meet weekly, not monthly. Record what was said each time.
In Malaysia, this record matters. If a dispute reaches the Industrial Relations Department later, your file is the evidence that you acted fairly and gave the person a real chance.
What are the risks of firing someone in Malaysia?
Malaysia is not a hire-and-fire market. Under the Employment Act and the Industrial Relations Act, an employee who believes he was dismissed without just cause can file a representation for reinstatement. Poor performance can be a valid reason, but only if you can show it was real, measured and communicated.
Check the employment contract for the notice period and any termination clause. Pay what is owed, including unused leave and contractual benefits. If the situation is unclear, get advice from an HR consultant or a lawyer before you send the letter. One hour of advice usually costs far less than a claim.
When is firing clearly the right call?
Some cases do not need a long process. Dishonesty, falsified orders, stealing customers, or behaviour that damages the team are grounds to act quickly, as long as you document what happened.
For pure performance, fire when three things are true: the target was clear, the support was given, and the numbers did not move after a fair period. If you keep a salesman who clearly will not improve, you pay twice. You pay his salary, and you pay for the deals the leads would have closed with someone else. Your other salesmen also notice who is being carried.
What should you fix before hiring the next salesman?
Replacing one salesman with another usually repeats the same problem unless you fix the system. Before you hire, decide how leads will be assigned, what the first 30, 60 and 90 days should look like, and what number counts as on track.
Also connect your ad budget to your sales capacity. If you spend more on ads than your team can follow up, you are paying for leads that go cold.
If you want the lead flow, tracking and follow-up system built so performance is easy to see, Pomegranet builds performance websites and marketing setups for businesses in Malaysia and Singapore. You can see the services and start a conversation at pomegranet.com.sg.
Frequently asked questions
Can I fire a salesman in Malaysia for poor performance?
Yes, poor performance can be a valid reason, but it must be documented. You need a clear target, evidence the target was missed, and proof you gave support and time to improve. Without that record, a dismissed employee can file a claim for unfair dismissal.
How long should a performance improvement plan last?
Long enough to cover at least a few full sales cycles, often one to three months depending on what you sell. Weekly reviews matter more than the total length. If your sales cycle is short, a shorter plan with more check-ins is fairer and faster.
Do I need to pay notice or compensation when I terminate?
Follow the employment contract and the Employment Act. Usually you either give notice or pay salary in lieu, plus any unused leave and contractual benefits. If the contract is unclear, get HR or legal advice before you act.
Should I fire him or move him to another role?
If he works hard and understands the product but cannot close, a role such as account management or support may fit better. If the issue is discipline, follow-up or honesty, moving him usually just moves the problem.
What if he is the only salesman I have?
Then the risk is higher and the plan matters more. Start hiring or training a backup before you terminate, so leads and customers are not left unattended. Do not let fear of a gap keep a clearly failing salesman in place for years.
