How to fire a salesperson

Sometimes a company may be better off firing a salesperson than keeping the person on board. If managed effectively, the potential for anger, retaliation, litigation or worse can be minimized. Before making a decision to terminate someone, ask yourself the following questions:

• Have you given an adequate amount of time for him or her to build up a sales pipeline, learn the business, understand their territory, and acclimate themselves to the company? Too often, companies pull the plug on a salesperson without giving him or her the adequate tools for success.
• Has he or she been given the training needed for success? If the problem is stemming from a lack of training, it is far more constructive and cost-efficient to retrain, rather than simply discipline and terminate. Keep the lines of communication open and always provide clear direction and honest feedback.
• Have you provided sufficient support? Management should be taking an active role in the salesperson’s day-to-day operations by joining him or her on sales calls. Take the time to ensure his or her sales activities and notes are properly maintained in a CRM system. As a team leader, you should review your employees’ files and information on a regular basis.

If you can honestly answer yes to each of these questions, and his or her lack of performance or behavior seems to be the common denominator in the problem, firing may be your only choice.

Once you’ve determined you have a “bad apple,” you need to begin the unenviable yet necessary process of termination. Gather your notes, files and any other backup documentation (this is why it’s important to document everything) before you sit down with the salesperson. If possible, have human resources or another senior executive attend the meeting.

The meeting

It’s never enjoyable to sit down an employee and say his or her services are no longer needed. Be clear and to the point. Explain why he or she is being fired and cite specific reasons. If there were prior performance warnings, this termination probably is not be a surprise. Stay professional and maintain an even tone of voice. Keep the meeting brief but offer the salesperson the opportunity to provide feedback. Wrap up the termination meeting by offering words of encouragement about the future, and, of course, wish him or her the very best.

Whether you decide to offer a severance package to the employee is most likely contingent on established company policies. If everything was clear when he or she was hired, the issue of severance shouldn’t be a problem. Clearly communicate how and when all monies owed will be paid. Ideally, a check should be given before the employee departs.