Why is the Directly reports to person on an employee's Position screen reflecting as "Not Active", when their employee record is active?

Why is the Directly reports to person on an employee's Position screen reflecting as "Not Active", when their employee record is active?

Alert
This applies to all PaySpace payroll editions.

The directly reports to person on an employee's Position screen will reflect as "Not Active" because the employee's position effective date is earlier than the manager's position effective date. 

InfoImportant Comment  
It is not necessary to insert a new position record with a current effective date,  if the "Not Active" message is displayed. The workflow path will still apply on the condition that the directly reports to person is registered for ESS.

      Navigate > Employee > Basic Information > Position > Reporting Line