When is a manager, a manager?

Something that comes up a lot when developing compensation and job structures is: what is a manager?

The problem is, it comes up too late.

Too late because, the question comes up after the frameworks have been built. And because decisions around responsibilities and pay are often augmented depending on the answer.

And on the surface, it might seem simple, after all, surely having a direct report means you're a manager?

But it's not that straightforward.

Consider one example (that comes up all the time). Imagine you have the following job level structure:

Now, let's say you have a senior professional (level 4, Expert) and they are given responsibility for one direct report.

(we're going to ignore for a moment the obvious job design question, which is "should there really be 'manager's of one?". Because, let's be real, I'm talking about startups and they're rarely that straightforward)

It's time to ask some questions:

• Does having one direct report make someone a manager (and qualify them to now 'switch lanes')?

• If they switch lanes, are managers paid more than peers at the same level?

• But wait, what level are they? Should they switch immediately to the same level as the one they were on, because they're a professional at that level? What if the definition of 'Lead' is 'someone who has 1-3 direct reports'?

  • Is this actually now a demotion?

These are the kinds of 'absolutes' and questions you'll bump up against in the inevitable throes an organisation goes through.

And it all comes back to the original question - what is a manager?

The answer for this is will be different for every company.

• Some feel the need to specify team size (1-3 = supervisor, 3-10 = manager, for example)

• Some prefer to speak to the level of responsibility (team, area, function, department etc. each with it's own definition)

A challenge that may occur with this approach, is that it unwittingly incentivises empire building (something written about a lot at behemoths like Google), and means you have to have strong headcount planning practices to offset the risk of bloated teams.

The answer to this then, is to spend time asking the questions around what first and foremost makes someone a manager, and secondly, what responsibilities a manager has, to effectively grade them from entry level to senior.

How do you define what a manager is or is not at your organisation, or how have you changed it over time to better reflect your business?