Should a team lead with two direct reports be on the management track at all?

Mid-sized logistics company in Poland, about 1,300 employees. Our framework has an individual track and a management track that begins at level 5. We have 64 team leads with between one and three direct reports who spend, by their own estimate, about 15% of their time on people management and the rest doing the same work as their team.

At the moment they are on the management track, which gives them a management bonus plan and manager criteria they mostly cannot meet. Moving them to the individual track with a lead allowance seems more honest, but it will feel like a loss.

Has anyone set a minimum span or time threshold for the management track, and what did you do with the people who fell below it?