Direct Reports: What Are They and Why Are They Important?
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What Is a Direct Report?
A direct report is an employee who works directly under a manager in the company who is above them in the organizational hierarchy. Directly reporting employees receive goals, tasks and responsibilities from this manager. It is common for managers in an organization to have multiple direct reports.
Who has direct reports?
Even though direct reports work under someone else, it doesn't mean they don't hold a high position in the organization. Except for the CEO or president of the company, everyone in the organization reports directly to someone else. Even the CEO himself can report to investors.
The following positions have direct reports: team leaders, managers, supervisors, department heads, directors, vice presidents, the company president and the CEO.
Difference between direct and indirect reports
As we discussed, a direct report reports directly to a senior leader in the organization. Therefore, managers are responsible for assigning them tasks, monitoring their performance and giving them regular and consistent feedback.
To properly represent the relationship between indirect and direct reports, look at this diagram:
The CEO has a number of direct reports. Anyone who does not report directly to the CEO is considered his indirect subordinate. While this example refers to the CEO, the same structure applies to all managers who have employees working below them in the hierarchy.
Why are direct reports important?
The purpose of a direct reporting system is to create an effective process for delegating tasks, monitoring performance, and achieving goals. Let’s discuss each of these benefits in a little more detail.
Delegation of tasks: Some managers find it difficult to delegate tasks properly. Without direct reports, managers or supervisors can take on far too much work to handle alone. Direct reports can take on some of the department's responsibilities, giving the manager more time to focus on larger organizational goals.
Monitoring Performance: When tasks are delegated to direct reports, it is much easier to monitor how each employee is performing on each task.
To optimally monitor performance, managers should have regular 1:1 discussions with their direct reports. These meetings provide an effective feedback process and a consistent platform for communication between direct reports and their manager. To track a direct report's progress over time, these meeting minutes can be documented and stored in a performance management function.
Achieving goals: A direct reporting system creates more organization among talent within the company and gives each department a clear structure. Structure and organization reduce unnecessary obstacles, resulting in greater efficiency. Greater efficiency makes it easier for a company to achieve its goals.
These guidelines should help you deliver a gift of feedback that employees are eager to unwrap and use right away. Experience how IceHrm empowers You today!
