When managers talk about their direct reports, they're referring to the employees they directly supervise and are responsible for managing on a daily basis. These are typically team members who report to them directly, rather than through another manager or supervisor. It's not limited to full-time employees, as part-time or contract workers can also be considered direct reports if they're directly accountable to a manager. In terms of team hierarchy, direct reports usually have a clear line of communication with their manager, who is responsible for evaluating their performance, providing feedback, and making decisions about their work assignments and development.