hiring externally

The Sales Manager Gap: Why Hiring Externally Isn’t Fixing Performance

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(Last updated September 24, 2025)

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The Real Issue Isn’t the Pipeline

It’s easy to say the management pipeline is weak, which is why companies keep hiring externally to fill leadership roles.

The assumption is that if someone has been a manager before, they don’t need training. But skills aren’t validated beyond an interview, and those hires bring gaps with them. Meanwhile, internal talent gets overlooked.

Strong sales reps get frustrated when they’re passed over for opportunities, and second-line managers are left frustrated, too. They hire new managers with skill gaps, but the company lacks consistent training to address these gaps.

Instead of developing leaders, they spend time cleaning up problems. Even a capable external hire still needs grounding in the company’s tools, culture, and processes.

This isn’t just a pipeline problem. It’s a leadership and accountability problem. Leaders lead. When leaders prioritize development, they establish the systems and provide the support necessary to make it happen. When they don’t, the system falters.

Key Takeaways

  • Hiring externally won’t solve long-term performance gaps. External hires arrive with their own blind spots and still need to learn the company’s systems, tools, and culture.
  • Second-line leaders are the missing link. Without the right tools and accountability, regional directors and VPs spend more time firefighting than developing first-line managers.
  • Trust can be built intentionally. Leaders who practice consistency, transparency, and support create environments where teams thrive..
  • Sustainable leadership requires structure. Clear frameworks, consistent coaching, and investment in development create cultures where sales leaders grow and talent stays engaged.

Why the Problem Exists

The developmental ladder for managers has broken down. In the past, high-potential reps could step into projects, preceptorships, or home-office roles that gave them visibility and experience.

Those paths have largely disappeared. Today:

  • Developmental roles are scarce. Training and operations manager positions were cut in reorganizations and downsizings.
  • Mobility is risky. Relocations are reserved for higher-level roles, and even then, there’s no guarantee of promotion.
  • Training is an afterthought. A weeklong cram session or a two-hour workshop isn’t enough to create measurable behavior change.

Specialty sales forces have replaced large primary care teams, which means smaller management ranks and fewer chances to grow. Companies lean on eLearning and generic digital content, but these don’t address specific organizational needs.

Without structured developmental steps, companies default to hiring externally—and hope for the best

why problem exist?

The Evidence Is Clear: CEOs Say One Thing, Invest in Another

Surveys show that 55% of CEOs rank developing the next generation of leaders as a top challenge. Yet fewer than 40% of organizations say they have succession plans or invest sufficiently in leadership development. Nearly 45% of managers believe their company puts too little focus on preparing future leaders.

In other words, leaders acknowledge the problem, but their investments don’t reflect their words. Leaders lead, and the lack of consistent investment is a choice.

Fixing the pipeline isn’t a training team’s job; it’s a leadership responsibility. Leaders must:

  • Set the tone by making development a strategic priority.
  • Reinforce accountability so coaching and performance management aren’t optional.
  • Invest consistently in people with the same seriousness as they invest in technology or products.

When leaders decide to fix this, they can. But if reliance on hiring externally continues without development, the gap only widens.

Develop the Developers

Most companies underinvest in second-line leader training. Regional directors and VPs are expected to coach new managers, but many never receive the tools, skills, or playbooks to do this effectively. As a result, they spend more time firefighting than developing leaders.

Some organizations outsource this problem to academic leadership programs. These offer great content but often fail to teach second-line leaders how to handle the realities of their role: coaching managers, holding them accountable, and translating theory into practice.

I’ve seen the difference when companies get this right. At one organization, second-line leaders followed a structured curriculum that included:

  • A playbook for supporting new managers.
  • Workshops like Inspirational Leadership, which focused on communication and presence.
  • Practical coaching skill development, applied directly with their teams.

Years later, leaders still talked about how those programs changed not just their performance, but the company’s culture. Even those who didn’t attend directly benefited from being in an environment where coaching and communication were prioritized.

Bottom line. If regional directors can’t coach effectively, no amount of classroom training for first-line managers will stick.

Build Consistent Processes

A single workshop or digital module won’t build leaders. Development must be structured, reinforced, and visible at every level of the organization. That means:

  • Clear processes for identifying talent beyond top sales results. Consistent performers in the top 35–40% should have opportunities to compete for developmental roles, projects, and assessments. Leadership potential isn’t limited to the top 20% of sellers.
  • Competency frameworks that balance results and behaviors. Sales numbers matter, but so do collaboration, coaching potential, and people skills. Organizations need frameworks that evaluate both and tie promotions to demonstrated leadership competencies, not just quota.
  • Ongoing coaching, feedback, and reinforcement. Second-line leaders need playbooks, tools, and accountability to coach new managers. Without follow-through, training becomes “check the box” instead of behavior change quotas.
  • Real investment in people, not just technology. Companies routinely spend millions on new systems or products, but hesitate to spend a fraction of that on leadership development. Real credibility comes when organizations match their tech spend with meaningful investment in talent.

Companies relying heavily on hiring externally will always chase stability, while those investing in structured development will build it.

consistent process

The Bottom Line

This isn’t about reinventing the wheel. The solutions already exist: coaching, accountability, structured development, and investment in people. What’s missing is leadership will.

When leaders decide to fix the broken ladder, they can. But until then, companies will keep hiring externally, losing their best talent, and leaving managers and second-line leaders to figure it out alone.

Too many companies lose talent and settle for underdeveloped managers because leadership training isn’t prioritized. The result? Frustrated sales teams, missed opportunities, and second-line leaders stuck cleaning up problems instead of developing people.

It doesn’t have to be this way. With the right investment in coaching, accountability, and consistent development, sales leaders can drive performance, keep talent engaged, and build a culture that lasts.

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