What does number of direct reports mean

By Indeed Editorial Team

Published May 3, 2021

When delegating tasks, direct reportees provide assignments to those in positions beneath them in the business hierarchical structure to create an effective business model. Direct reports are therefore the connection between upper management and other employees and perform necessary tasks to reach the company's overall mission. Knowing why your role as a direct reportee is important can help you understand why your responsibilities are important. In this article, we define what a direct report is, explore how to get to know yours and compare direct reports to indirect reports.

What is a direct report?

A direct report is an individual who takes orders from a manager or person above them in the hierarchical organizational structure of a business. The person they report to is known as the direct reportee. They receive work assignments from their supervisor who also monitors them on their overall work performance and provides them with feedback. Direct reports are typically one of many working under an individual. While direct reports work under higher positions, they can still hold a high position. For instance, a vice president of a software company reports to the CEO but also manages several direct reports.

Related: Hierarchical Structure: Definition and Examples

Who has a direct report?

Companies usually use direct reports when they have a traditional organization system with many departments. This is especially prevalent in large businesses with many employees to keep track of. Organizations assign authority to each department and under the departments are several direct reports who also may manage their own direct reports. Typically, positions in the upper tier of the business hierarchy have direct reports.

Some positions that have a direct report include:

• Managers

• Team leaders

• Supervisors

• CEOs

• Company president

• Shareholder

• Store owner

• Head of a department

• Director

Related: What Is Business Hierarchy and Does It Work?

Why are direct reports important?

Businesses use a direct reports system to delegate tasks and monitor performance. Direct reports help perform needed tasks for an organization to help it reach its overall goal. Having an organizational structure is especially important for large companies that have many demands.

Some of the benefits of having direct reports include:

• Creates a feedback system

• Improves communication across the organization

• Builds a link between the hierarchies of the business structure

Related: Delegation of Authority: Definition and Guide

How to get to know your direct report

In order to be a successful direct reportee, it's helpful to build a relationship with your direct report. Follow these steps to get to know your direct report:

1. Schedule a one-on-one

Plan a time to meet with your direct report to discuss how they are doing. This time can be used to get familiar with your direct report and get to know them more personally. Try to schedule regular check-ins so that your direct report can feel you are approachable and knows what you expect from them.

2. Join an assignment

To get a sense of what your direct report does, consider joining them for a project. Shadowing and working side by side with your direct report as they complete daily tasks can help you understand their operations. It also shows you care about what they do and consider yourself an equal with them.

3. Maintain consistent communication

Regularly communicate with your direct report, even outside of one-on-one meetings, to discuss any questions or issues they have in the workplace. Ask them about the status of their project so you know how their performance is going. Make sure your direct report knows what your communication style is so that they can contact you with your preferred method, such as email or in person.

Related: How To Make Your Boss Like You

4. Outline your goals

Let your direct report know what your priorities are so that they can work to help you achieve them. Clarifying what their tasks are can help them be efficient at their job. Consider setting short-term and long-term goals to focus their efforts on, utilizing their unique skills.

5. Attend socializing events

If your company holds socializing events, such as holiday parties or happy hours, take advantage of the time to get to know your direct report outside of the work setting. During this time you can be friendly with your direct report and build a deeper relationship. This can be a chance to learn more about who your direct report is as a person and what sorts of hobbies and interests they have.

6. Earn their trust

One of the most important steps to building relationships with others is earning their trust. You can help build trust with your direct report by allowing them to take ownership of their work and demonstrating that you feel you can rely on them.

Related: Tips for Preventing Lack of Trust in the Workplace

7. Get a candy jar

Another way to build a relationship with your direct report is to get a candy jar or unique artwork for your desk to make you more approachable. Having a candy jar or conversation starter item can also help promote a casual conversation with your direct report. Also, consider asking your direct report about an item on their desk to learn more about them.

Direct report vs. indirect report

In addition to direct reports, some organizations have indirect reports. While both roles report to someone above them, the path of hierarchy is slightly different. Here are some of the differences between direct reports and indirect reports:

Who reports to who

Direct reports work under a supervisor, whereas an indirect report works under a direct report. This means that an indirect report is part of a direct reportee's responsibility since they manage the direct report.

Number reporting to a supervisor

Typically, a supervisor will have around 10 to 15 direct reports and closer to 20 to 100 indirect reports. The number of indirect reports expands since it includes everyone under your direct reports in the organizational structure.

Management

A direct reportee is responsible for managing a direct report, but doesn't personally manage an indirect report. Direct reports manage indirect reports and delegate them with assignments. This is why a direct report may be both reporting to someone and also managing others