Team Lead vs Manager: What’s the Difference?

While some people might use the terms “team lead” and “manager” synonymously, they have distinct meanings. Some overlap exists, as both are leadership positions, but there are key differences.

A manager has authority over all activities and employees within a specific department of a company. They’re also held accountable by a business’s executive team for the work done in their area, including tracking metrics and conducting strategic planning.

Meanwhile, a team lead—often below a manager in a company’s hierarchy—usually focuses on a smaller group of employees working on a specific project or part of a project, ensuring team performance and team management.

As a business owner or hiring manager, it’s helpful to understand the main differences between the two. This article walks you through the key differences between managers and team leads.

What is a team lead?

A team lead is generally lower in the hierarchy than a manager and takes on a specific role. Usually, they focus on a particular project or part of a project for specific periods, or they lead a group of people on day-to-day operations.

In these situations, a team lead organizes and monitors the progress and timeline of the projects and outlines all plans and expectations with the workers on their team. Based on the project’s expectations, they’ll create a blueprint for getting the work done from start to finish. Along the way, they’ll delegate tasks, coordinate staff, and offer feedback to employees, focusing on team management and team leadership.

Team leads need effective communication skills. In addition to delineating expectations to team members, they’ll need to report a project’s progress to the supervisor or manager above them.

Examples of a team lead’s role

Let’s explore a few examples of a team lead’s job role:

• Provides their team with direction. A team lead sets the tone and direction for a project. They’ll organize a clear plan for the project with specific goals, outcomes, and timelines, and convey this vision to their team. Then, they’ll delegate tasks and coordinate workers to reach benchmarks as they work toward the completion of the project.
• Fosters a positive work environment. Employee morale is imperative for productivity. Happy employees are as much as 20% more productive than unhappy workers. To create a more positive workplace, team leads should establish goals and monitor and reinforce progress toward those objectives. They should avoid unnecessary criticism and complaining, praise their team, and show sensitivity to and genuine interest in their employees’ feelings.
• Communicates key elements of a project. A team leader ensures everyone—from their manager to their newest team member—has a common understanding and is in agreement during a project. This means setting attainable and clear goals for employees and regularly reporting on a project’s progress as it moves forward. They’ll communicate if there are setbacks so employees can work together to assess barriers and find solutions.
• Listens to team members. Beyond guiding employees, a team lead can make a difference by listening to team members’ ideas and concerns. Listening to a worker’s suggestions for a project can make them feel empowered and valued in their role on a team.

What is a manager?

A manager is a senior position that tends to focus more on a company’s big picture. Rather than concern themselves with workers' day-to-day activities, they tend to collaborate more with stakeholders and focus on a business’s overall financial gains. They’re more concerned with an organization’s objectives and key metrics.

At the same time, they monitor a team’s or several teams’ overall progress—communicating with team leads—and often track and analyze data to determine results, ensuring that team performance aligns with business goals.

Examples of a manager’s role

We cover a few examples of a manager’s role within a company:

• Set strategic goals. A key role of a manager is to set long-term objectives and operational goals for a company or department. These goals then get communicated to team leaders and translated to targets at the team and individual levels.
• Oversee staffing. Once goals are set, managers need to determine how work will be divided by teams and how many workers are needed to accomplish objectives. This means talent acquisition and cuts as necessary based on performance and company needs, focusing on developing the right skill sets.
• Forecast productivity. As they set goals for a department or company, a manager must forecast a team’s productivity before setting plans. This requires evaluating available data—including inventory levels, production speed, and client demand—and calculating what a department should achieve.  
• Focus on financial health. Managers tend to take a broader view of a company. Rather than the details of day-to-day operations, they focus on the bigger picture and how individual and team accomplishments impact the financial health of a business.

Differences between a team lead and a manager

While both team leads and managers require keen communication skills, decision-making skills, and leadership skills to succeed in their roles, there are also some key differences. The two positions differ in vision, interactions, and communication.

Examples of the difference

Some key differences between team leads and managers include:

• Vision. A manager tends to have a broader area of focus than a team lead, thinking more about long-term strategic objectives and the business’s overall financial health. A team leader tends to be more niche focused, whether on a project or within a specific department.
• Primary interactions. A team lead works on specific projects or in particular departments overseeing and working closely with a team of direct reports whose daily activities focus on specific team goals. Managers often interact with multiple team leads and supervisors and tend to work most closely with higher-level staff members and stakeholders.
• How they communicate. Both roles require strong interpersonal skills. The difference comes down to how they communicate. A team lead is typically expected to answer team members’ questions, listen to ideas, do team building, provide feedback and reviews, praise good work, and celebrate their team’s success. Their job is communicating a company’s overall goals to their team, translating how business objectives and performance impact workers’ day-to-day activities. Meanwhile, a manager may not frequently communicate with lower-level employees. They collaborate more with higher-level workers and leaders and share decisions with those below them. They likely convey the company’s goals and expectations to team leads.

Similarities between a team lead and a manager

There’s some overlap between the two positions, especially as they work toward the same company goals.

Anyone in a leadership role may have to make decisions that impact their work and that of their co-workers, often requiring impressive problem-solving skills. It’s also important that their hard work serves as an example to other employees.

Read on for more ways the two positions are similar.

Examples of similarities

Some ways in which the role of a team lead and a manager might overlap include:

• Communication skills. While what they’re communicating and who they’re communicating with might be different, it’s imperative that both team leads and managers have strong communication skills. These skills are necessary for ensuring everyone is aligned in understanding and actions—whether talking about a group of people working on project management or navigating a company’s overall goals.
• Motivating workers. Company leaders from the top down should inspire their workers and create a positive work environment. This makes for happier workers—at all levels—and increased productivity, benefitting the company financially.
• Process management. For a company to run efficiently, team leaders and managers must have a strong grasp of process management. When it comes to standards and operating procedures, though, a team leader tends to be more focused on specific projects or department initiatives. At the same time, a manager sets and understands these work rules more broadly as they affect all company areas.

FAQ

Still have some questions about team leads vs. managers? Here are some commonly asked questions and answers.

What is the main difference between a team lead and a manager?

The main difference between a team lead and a manager is their scope of responsibility. A team lead focuses on day-to-day operations and directly managing a specific group of employees, often on a particular project. In contrast, a manager oversees broader strategic planning, resource allocation, and overall department or company goals.

How do team leads contribute to team performance?

Team leads play a crucial role in driving team performance by setting clear goals, facilitating open communication, and providing ongoing mentorship. They are responsible for ensuring that the team works collaboratively and efficiently to meet project objectives.

What leadership qualities are important for a team lead?

Leadership qualities for a team lead include effective communication, strong time management, and the ability to motivate and guide their team. These qualities help ensure that projects are completed successfully and that team members feel supported and valued.

How can a manager ensure a high-performing team?

A manager can ensure a high-performing team by regularly monitoring metrics related to team productivity, providing the necessary resources and support, and fostering a culture of teamwork and continuous improvement. Aligning team efforts with the company's strategic planning goals is key to achieving sustained success.

Develop your team with Upwork

As you hire leaders in your workplace, it’s helpful to know the key differences and similarities between a team lead and a manager.

Business owners or hiring departments interested in addressing a company’s management needs should consider hiring a leadership development specialist through Upwork.

Our platform features numerous talented individuals who can help your company’s leaders grow and evolve. We can also help if you want to fill manager positions for short-term projects or are looking to leverage remote work.

If you’re a skilled professional looking for a new role, use our platform to showcase your leadership and management skills and experiences. Upwork can help you find the best fit for your next role.