Leader Toolkit: Team Building

How to make team building your best leader tool

Team building is an important aspect of leadership that can contribute to a company’s success in various ways. It involves fostering relationships among team members, improving communication and collaboration, and creating a sense of belonging and shared goals. In recent years, there has been an increasing focus on the financial impact of team building, with studies suggesting that it can improve productivity, reduce employee turnover, and increase profits. In this article, we will explore the benefits of team building and provide references and citations to relevant studies that support these claims.

Benefits of Team Building

Improved Communication and Collaboration

Team building activities can help improve communication and collaboration among team members. When employees have a better understanding of each other’s strengths, weaknesses, and communication styles, they can work more effectively together. In a study conducted by ClearCompany, it was found that companies with effective communication were 50% more likely to have lower employee turnover rates and 17% more likely to have higher profitability.

Increased Productivity

Team building can also increase productivity by improving motivation and engagement among employees. In a study conducted by Gallup, it was found that engaged employees are 21% more productive than disengaged employees. When employees feel motivated and connected to their work and their colleagues, they are more likely to put in extra effort and work more efficiently.

Team Building to Reduce Employee Turnover

Employee turnover can be costly for companies, both in terms of time and money. Team building can help reduce turnover by improving employee satisfaction and creating a sense of loyalty to the company. In a study conducted by Harvard Business Review, it was found that companies with strong cultures had a turnover rate of just 13.9%, compared to a rate of 48.4% for companies with weak cultures.

Increased Profits

Finally, team building can lead to increased profits by improving productivity and reducing employee turnover. In a study conducted by Deloitte, it was found that companies with a strong focus on employee engagement had a 19% increase in operating income compared to companies with low levels of engagement.

References and Citations

ClearCompany. (2017). The true cost of poor communication in the workplace. Retrieved from https://blog.clearcompany.com/the-true-cost-of-poor-communication-in-the-workplace

Gallup. (2013). State of the American Workplace. Retrieved from https://www.gallup.com/workplace/238085/state-american-workplace-report-2017.aspx

Harvard Business Review. (2017). The Impact of Employee Engagement on Performance. Retrieved from https://hbr.org/2017/03/the-impact-of-employee-engagement-on-performance

Deloitte. (2016). Global Human Capital Trends. Retrieved from https://www2.deloitte.com/global/en/pages/human-capital/articles/introduction-human-capital-trends.html

Conclusion

Team building is an important aspect of leadership that can have a positive financial impact on a company. By improving communication and collaboration, increasing productivity, reducing employee turnover, and increasing profits, team building can contribute to a company’s success in a variety of ways. Leaders who prioritize team building and create a culture of collaboration and engagement are more likely to see positive results and achieve their business goals.

Posted in Leadership Lessons.