TSQL CTE hierarchy - sql-server

Question

I am trying to create a CTE on my table to pull in a hierarchy of employees.
I have a starting point which is a "Director" and I want to find everyone that reports to each person under them.
Here is what I have so far:
;WITH EmpTable_CTE (FirstName, LastName, QID, Email) AS
(
SELECT FirstName,
LastName,
QID,
Email
FROM EmployeeTable E
WHERE QID = '12345'
UNION ALL
SELECT E.FirstName,
E.LastName,
E.QID,
E.Email
FROM EmployeeTable E
INNER JOIN EmpTable_CTE AS E2 ON E.MgrQID = E2.QID
)
SELECT * FROM EmpTable_CTE
This seems to work providing me a list of employees but there is no "hierarchy" to it.
How can I go about using FOR XML to create the hierarchy that I am looking for?
<Director>Bob Smith</Director>
<Direct>Jim Smith</Direct>
<Direct>Employee 1</direct>
<Direct>Employee 2</direct>
<Direct>Employee 3</direct>
<Direct>Bob Jones</Direct>
<Direct>Employee 1</direct>
<Direct>Employee 2</direct>
<Direct>Employee 3</direct>
<Direct>Employee A</direct>
I'm sure its just a matter of placing the FOR XML line somewhere but cant quite figure it out.
Update: Here is a SQL Fiddle of sample data:
http://sqlfiddle.com/#!6/a48f6/1
This is how I would expect the data to be from the fiddle:
<Director>Jim Jones</Director>
<Direct>Bob Jones</Direct>
<Direct>Jake Jones</Direct>
<Direct>Smith Jones</Direct>
<Direct>Carl Jones</Direct>
<Direct>Bobby Jones</Direct>
<Direct>Danny Jones</Direct>
<Direct>Billy Jones</Direct>

Answer 1

Part of the difficulty is in the XML structure you presented - If you passed that into a parser, it would all be flat, and running the results of my process below without stuffing the First and Last name into an attribute made the nodes come out in mixed content (text with nodes on the same level).
So, I went searching and found this little gem here on SE. Adapting it to your needs, and throwing in a few fields as attributes from your table, I came up with this:
CREATE FUNCTION dbo.EmpHierarchyNode(#QID int)
RETURNS XML
WITH RETURNS NULL ON NULL INPUT
BEGIN RETURN
(SELECT QID AS "#ID", Email AS "#Email",
FirstName + ' ' + LastName AS "#Name",
CASE WHEN MgrQID = #QID
THEN dbo.EmpHierarchyNode(QID)
END
FROM dbo.EmployeeTable
WHERE MgrQID = #QID
FOR XML PATH('Direct'), TYPE)
END
SELECT QID AS "#ID", Email AS "#Email",
FirstName + ' ' + LastName AS "#Name",
dbo.EmpHierarchyNode(QID)
FROM dbo.EmployeeTable
WHERE MgrQID IS NULL
FOR XML PATH('Director'), TYPE
Essentially, this traverses down in the hierarchy, recursively calling itself. The CTE isn't sufficient if your output is targeted for XML. Using this, and what I could glean of your sample data, I got this as a result:
<Director ID="1" Email="bsmith#someCompany.com" Name="Bob Smith">
<Direct ID="2" Email="jsmith#someCompany.com" Name="Jim Smith">
<Direct ID="4" Email="e1#someCompany.com" Name="Employee 1" />
<Direct ID="5" Email="e2#someCompany.com" Name="Employee 2" />
<Direct ID="7" Email="e4#someCompany.com" Name="Employee 4" />
</Direct>
<Direct ID="3" Email="bjones#someCompany.com" Name="Bob Jones">
<Direct ID="6" Email="e3#someCompany.com" Name="Employee 3" />
<Direct ID="8" Email="e5#someCompany.com" Name="Employee 5" />
<Direct ID="9" Email="e6#someCompany.com" Name="Employee 6" />
</Direct>
</Director>
Hope this helps.
EDIT: Last Minute SQLFiddle Example.

Answer 2

See if it meets yours requirement:
;WITH EmpTable_CTE (FirstName, LastName, QID, Email) AS
(
SELECT FirstName,
LastName,
QID,
Email
FROM EmployeeTable E
WHERE QID = 1
UNION ALL
SELECT E.FirstName,
E.LastName,
E.QID,
E.Email
FROM EmployeeTable E
INNER JOIN EmpTable_CTE AS E2
ON E.MgrQID = E2.QID
)
SELECT LastName + ', ' + FirstName FROM EmpTable_CTE FOR XML PATH('Direct'), ROOT('Director'), TYPE