What are direct reports?

Direct reports are the employees who report straight to a manager, with no one in between. The number a manager has, and how much time each gets, shapes how well a team runs.

In shortA direct report is an employee whose immediate supervisor is a given manager. A store manager’s direct reports might be three shift leads; each shift lead’s direct reports are the associates on their shift. People further down the chain, such as the associates under the shift leads, are indirect reports of the store manager. The number of direct reports is called the span of control. There is no single right number: a supervisor of experienced workers doing similar tasks can handle more than one managing a mix of new hires and complex jobs. The term also matters in wage classification. One of the requirements for the executive overtime exemption is that the employee customarily and regularly directs the work of two or more other employees, so a “manager” with no one to direct does not meet that part of the test.

Span of control in practice

Factors that change how many direct reports work
Factor Fewer direct reports More direct reports
Experience of the team Many new hires Mostly experienced
Type of work Varied, complex Similar, routine
Manager’s other duties Also works the floor Full-time managing
Spread of locations and shifts Several sites or shifts One site, one shift

If a manager has more direct reports than they can check in with every two weeks, consider adding a shift lead layer. See reporting structure.

Kitchen manager’s direct reportsBefore22After10 (8 cooks + 2 leads)Each new lead has 7 direct reports
Adding two shift leads brought each manager’s span down to a size they could talk to.

Worked example: a kitchen manager with 22 direct reports

Adding two leads

A kitchen manager at a busy restaurant has 22 direct reports across morning, evening and weekend shifts. She also works the line at peak times. She has not had a one-on-one with most cooks in months, and problems reach her only when someone quits.

The owner promotes two experienced cooks to shift leads, one for evenings and one for weekends, each with seven direct reports. The kitchen manager keeps eight morning cooks and the two leads, ten direct reports in all.

The leads hold short check-ins with their cooks every two weeks and bring issues to the manager weekly. In the next quarter, two cooks who were about to leave stay after schedule changes the leads arranged. The leads are paid hourly and stay non-exempt; their new title does not change their overtime status.

Mistakes that are specific to direct reports

Making time for each direct report

Every direct report needs some regular time with their manager. A practical floor for frontline teams is a 10-minute check-in every two weeks, plus quick feedback on the floor. Multiply that by the number of direct reports to see whether the load is realistic: 20 people at 10 minutes every two weeks is about 100 minutes a week, before any coaching, scheduling or problem-solving.

Keep a short running note for each person: what they are working on, any concern they raised and what you promised to do. When a manager changes, those notes let the new manager pick up without starting from zero, and they make reviews much easier to write.

Second example: handing over direct reports

A store’s evening manager moves to another location. Her 11 direct reports are handed to a newly promoted lead, who knows them as coworkers but not as their manager.

The outgoing manager writes a one-paragraph note for each person, covering strengths, current goals, any accommodation in place and open requests, and holds a 15-minute joint check-in with each before she leaves. In the first month, none of the 11 has to repeat a request, and the new lead starts her own check-ins with the context already in hand.

Count the check-ins, not the boxesTo judge if a manager has too many direct reports, count how many they actually spoke with one-on-one in the last month. The org chart shows the span; the check-ins show if it works.

Questions people ask

What does direct report mean?

An employee whose immediate manager is a specific person, with no one in between.

How many direct reports should a manager have?

It depends on the team’s experience, the type of work and how much the manager also works the floor. A manager should be able to check in with each one regularly.

What is the difference between direct and indirect reports?

Direct reports report straight to the manager. Indirect reports report to one of the manager’s direct reports.

Does having direct reports make someone exempt?

Not by itself. The executive exemption requires management as the primary duty, directing two or more other employees, hiring or firing input, and the salary tests.

What should a manager do in a one-on-one with a direct report?

Ask how things are going, discuss one or two specific topics, agree on any next step and write it down. Ten minutes is often enough for frontline roles.

Can someone have two managers?

In a matrix structure, yes. Write down which manager approves what, such as time off and schedules versus training, to avoid confusion.

Related on EZTime

Useful next steps

Keep HR paperwork and updates in one place

Digital HR forms, e-signatures and a digital employee file with expiry reminders, plus announcements by location, department or role.

Disclaimer: This explanation of direct reports is general information, not legal, payroll or tax advice; rules differ by state and city and change over time, and the examples are fictional.