Team leader vs. manager definitions

A manager is an employee who oversees a team or a department. They work with company leaders to understand how their team can support the organization’s overall objectives. Based on that information, they develop strategies and set goals for the team. Managers also assign projects, evaluate performance, manage team dynamics and provide career and development guidance.

A team lead typically works below the manager. This person is responsible for overseeing the day-to-day activities of the team. Depending on your team structure, you may have multiple team leaders who manage smaller groups, or pods/workstreams, within your department. They support individual employees and ensure they have the tools and resources they need to succeed.

Key differences between team leaders and managers

As you’re deciding whether to hire a manager or a team lead, it’s helpful to understand the function of each role in your organization. Here are a few important differences between a team leader vs. manager.

Goals vs. operations

Managers set goals for the team and delegate tasks accordingly. The team lead supports the manager by helping employees make progress toward overall and individual goals.

For example, when your company needs someone to develop long-term accounting strategies to help the company meet its financial objectives and compliance requirements, a manager could be the right hire. If individual accountants need more daily oversight regarding invoicing or tax procedures, a team lead may be more effective.

Broad vs. specific skills

Managers often have broad skill sets that include decision-making, leading and motivating employees and helping the team function as part of the larger organization. Team leads are more likely to have specific skills relevant to the function of the team.

If your software development team needs specific guidance about syntax and efficient debugging workflows, you might bring on a team lead who is an experienced programmer. A manager could be a better choice if the team needs help allocating resources, keeping projects on budget or coordinating with other departments.

Authority vs. relationships

Managers may have the authority to hire and discipline employees according to company policy. In some companies, they’re also involved in the promotion process by advocating for employees’ strengths and conducting end-of-year reviews that highlight areas for professional growth. Team leads have limited authority. Instead, they tend to gain influence by building trust and relationships with employees.

When you’re deciding whether to hire a team leader vs. manager, consider which type of leadership the department needs most. A manager can bring structure and order to a team, while a team lead can help create a stronger sense of community and collaboration.

Tips for developing employees into managers or team leads

Hiring managers and team leaders from within can be an effective way to increase employee retention. Internal hiring expands opportunities for advancement, giving workers a way to grow their careers while staying with your organization.

Here are a few ways to develop employees into strong candidates for manager or team lead roles.

1. Offer communications training

Managers and team leads must communicate effectively with employees. To help employees build stronger communication skills, give them plenty of opportunities to improve.

If you have a dedicated training specialist, consider developing courses on public speaking, business writing and phone communication. Alternatively, you can purchase online classes or encourage employees to enroll in courses at a local university.

2. Model positive behavior

To help employees understand what you expect from leadership roles, ensure your current managers and team leads are modeling desired behaviors by:

• Acting with integrity
• Praising others for a job well done
• Treating people fairly
• Supporting team members when they’re struggling
• Listening actively to other perspectives
• Being truthful at all times
• Taking responsibility for their actions

3. Start a mentoring program

Mentorship programs help give employees the opportunity to learn from senior leaders. Mentors might help mentees set career goals, fill knowledge gaps and develop relevant skills. An effective mentorship program can help employees be more productive in their current roles while preparing them to become company leaders.

Use these tips to build a meaningful mentoring program:

• Match participants with mentors who have compatible personalities and career experiences.
• Provide mentors and mentees with the support they need to make the relationship a success.
• Set clear expectations and goals for the program.
• Encourage mentors to give advice and guidance while allowing participants to make their own career decisions.
• Ask for feedback, and adjust the program accordingly.

4. Give employees a sense of ownership over their work

When employees have ownership over their responsibilities, they often develop a stronger sense of accountability. Encouraging autonomy can help them feel more invested in the success of each project and connected to the mission of the company—essential traits for managers and team leads.

Here’s how you can encourage employees to take ownership of their work:

• Build relationships: Get to know your employees. Where possible, match individuals with assignments that align with their goals, talents and interests. This strategy can spark creativity, passion and motivation.
• Focus on your mission: Make sure employees understand how their roles fit into company operations. Explain why their job is essential to the success of the team and the organization.
• Get employee input: Ask team members for input, and incorporate it into the decision-making process. Taking employee feedback can help workers feel more confident when speaking up about things that truly matter.
• Avoid micromanagement: When managers trust employees to complete their tasks independently, it can help workers develop leadership skills, confidence and a strong sense of ownership.

FAQ about the difference between a lead and a manager

Is it harder to be a team lead or a manager?

Both roles have their challenges, but it’s typically more difficult to be a manager than a team lead. That’s because managers have a wider scope of responsibility, both within the team and the organization as a whole.

What skills and experiences set managers apart from team leads?

When you’re hiring a manager, you might look for advanced skills in communication, conflict resolution, managing people, leadership, project management and strategic planning. Successful candidates often have practical experience leading teams or working in supervisory roles.