Hawkins was involved in 21 games in his first year at Sandy Park, a move that ended his Wales career under the 25-cap rule.
He started the first five matches of this season though was replaced in all of those games – each one a defeat – and has dramatically fallen down the Chiefs’ midfield pecking order.
“It probably has been tough for him and I don’t mind admitting that,” said Baxter.
“He’s been good about it, not had any tantrums, and got on with it. He’s aware there are things we’ve asked of him and right now we just feel Will Rigg gives us more go forward.”
Gatland picked Hawkins for all but one match of the 2023 Six Nations before the player’s departure from Ospreys amid the drastic cost cutting among the regions.
The Wales coach has said he would be keen to have Hawkins back as a possible contender for the problem number ten jersey.
But Baxter has warned Hawkins there is little chance of him playing that position for Chiefs.
“I understand why some people may think [fly-half] is his best position,” he added.
“I’ve considered Joe at 10 but we didn’t have the opportunity early on as we juggled our resources due to limited options in midfield.
“It will be hard now to rotate and give him a bash at 10 because we’re in a pressure situation and we need to win games.”