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Guide · Employment practice

A capability procedure for sales managers, step by step

Acas advises trying to help someone improve before any formal action. This is how that looks on a sales floor, and the records that show it happened.

Scott O'SullivanScott O'Sullivan, founder of Welivo. 14 years running sales floors and contact centres.· Updated 27 Oct 2026

A capability procedure is the process for dealing with a rep who is not meeting the standard of the job. Acas advises trying to help the person improve first. In practice that means a conversation, a written plan with specific objectives and a reasonable timeline, real support, dated reviews and a record of each step. Dismissal comes last.

Not legal advice. This page draws on Acas guidance on problems with an employee's performance and the Acas Code of Practice on disciplinary and grievance procedures. It was last checked on 27 October 2026. Check your own policy, and take advice from Acas or an employment solicitor before you act on a real case.

The steps

  1. Talk to them informally first. Say what the standard is, where the gap is, and ask what is getting in the way. Acas advises trying to help the person improve before moving to anything formal. Write down the date and what was said, on the same day.
  2. Put the plan in writing. Acas says a plan should set out specific objectives and a reasonable timeline. For a rep that means a target, the gap in money and the review dates. Give the rep a written copy. Our PIP template for sales teams sets this out.
  3. Give them the help you promised. Acas lists coaching, mentoring and training, and says the employee needs adequate resources to do the job. On a sales floor that means call reviews, deal reviews, time with a stronger rep, workable leads and a CRM that works. Put each commitment in writing with a date.
  4. Review on the dates. Meet when you said you would. Record the figures, whether the support was given, and what the rep says about it. Ask the rep, not yourself, whether it happened.
  5. Say what happens if there is no improvement. Acas advises stating the consequences in advance. If there has been some improvement, the plan can be extended. If the problem continues, the next step can be a final written warning, and dismissal after that as a last resort. A dismissal needs a fair procedure.
  6. Follow your formal process. The Acas Code sets out the formal steps. Tell the employee in writing what a meeting is for, give them the right to be accompanied at a formal meeting, hear their side, and let them appeal a formal decision.

What to record

If it is not written down with a date, it did not happen. For every rep on a capability process, keep:

  • The target and the gap, in money. Not "underperforming". A figure by month.
  • The date and content of each conversation. Written on the day, not rebuilt later.
  • The plan. Objectives, timeline and review dates, with a copy given to the rep.
  • The support promised, and whether it happened. The rep's own answer, including anything they dispute. Our coaching log template and sales one-to-one template build this in.
  • The review notes and the outcome. Signed and dated.

From 1 January 2027, more of your people will be able to bring a claim after six months' service, so the record matters for more reps than it does today. Our guide to the January 2027 changes covers what a manager needs on file.

Where it goes wrong on a sales floor

  • Measuring a new rep against a full target. A rep who is still ramping needs a target that fits the stage they are at.
  • Changing the ground mid-plan. Moving territory, leads or the commission plan, then measuring against the old target.
  • A plan with only the rep's actions. The manager's commitments are the plan. Without them it is a warning.
  • Missed review dates. They are the first thing a rep's representative will point to.
  • Ignoring health or disability. Acas advises considering reasonable adjustments before any disciplinary action.

The Acas Code and what is coming

The current Code is the 2015 Acas Code of Practice on disciplinary and grievance procedures. A tribunal can adjust an award by up to 25% where either side unreasonably fails to follow it. Acas published a draft replacement Code on 30 July 2026 and consulted until 23 September 2026. It has no start date yet, so the 2015 Code applies until it does. Check the Acas site before you rely on this page for a live case.

Common questions

What is a capability procedure?
The process an employer follows when an employee is not meeting the standard the job needs, as opposed to a conduct problem. It aims to help the person improve, and it records what was done.
What is the difference between a PIP and a capability procedure?
A PIP is usually the written plan inside the process. The capability procedure is the whole sequence: an informal talk, the plan, the reviews, any formal stages and the right to appeal.
How long should a capability procedure last?
There is no fixed length. Acas says a plan should have a reasonable timeline. Set it from the role and the sales cycle, and write the review dates down at the start.
Does a rep have the right to be accompanied?
At a formal meeting where a warning or dismissal could result, an employee has the right to be accompanied by a colleague or a trade union representative. Check your own policy and take advice before you run a formal meeting.
What should a manager record?
The target and the gap in money, the date and content of each conversation, the plan, the support promised and whether it was given, the review notes, and the rep's own comments, including anything they dispute.

Sources

Reviewed by: not yet reviewed by a solicitor. If you are an employment solicitor in Manchester and would like to review this page and be credited, get in touch through the book page.

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