Regardless of what industry you’re in, business is all about the bottom line. It’s great to have a company mission statement and some goals to work towards, but at the end of the day it all comes down to profit and loss on a balance sheet. This is why team building events often don’t get the attention they deserve.
The problem with team building is that, unlike other elements of your business, it’s benefits can be hard to quantify. That’s why far too many businesses neglect it. The harsh truth of the matter is that if you do, it’s going to hurt your bottom line.
It can also be tempting to fall into the trap of thinking that the salary they earn should be enough to motivate your staff to do an outstanding job. Unfortunately, that’s just not the way that people work. If you want your workforce to perform at its peak, you need to provide motivation and create the kind of workplace atmosphere that will allow this to happen.
Spending money on quality team building events definitely isn’t a waste. In this blog article, we’re going to examine 5 reasons why you can’t afford to neglect it. From increasing productivity to reducing the costs associated with staff turnover, every penny that you put into your team building is going to pay itself back many times over.
Team Building Boosts Employee Engagement
A recent Gallup article revealed that 70% of workers are not showing up to work committed to delivering their best performance.
As if that wasn’t bad enough, it also revealed that 51% of employees were actively looking for a new job or watching for new job openings.
To give you one more worry statistic, Gallup also identified that 17% of employees were actively disengaged. This means that not only are they not working to their full potential, but they demonstrate their unhappiness to undermine the accomplishments of their engaged colleagues. These kind of people are effectively “sinking the ship” by poisoning your company culture and bringing down your team’s success, profits and happiness.
What’s the cost of all of this? Well, Gallup estimates that disengaged workers are costing the US economy $500 billion per year! While our economy is a lot smaller than the US, we’re willing to wager that the same problem is costing Australian companies thousands and thousands of dollars every year.
Effective team building events contribute to higher levels of employee engagement. Engaged employees feel connected to their work and their team. They’re passionate, loyal. They work to promote innovation and go the extra mile to find new solutions to old problems.
In short, they’re the kind of people that you need.
It Can Double Your Net Income
A recent study by the Kenexa Research Insitute revealed that companies with highly engaged employees achieved twice the net annual income of companies with poor levels of employee engagement.
Their research also found that 50% of the positive changes in the communication patterns within the workplace- which are a major driver of a business’s success – could be credited to social interaction outside of the workplace.
Still think that team building events are a waste of money?
It Helps You Attract & Retain Top Talent
As we mentioned before, salary isn’t everything when it comes to getting the best out of your employees. This also applies to attracting and retaining the kind of people that are going to help your business to really thrive.
Companies that are able to use their strong corporate culture as a bargaining chip are able to recruit the best and brightest talent. This is becoming increasingly important as more millennials join the workforce.
Younger people are increasingly likely to look beyond salary to the working environment and workplace culture when deciding where they want to work.
In addition to losing talented people, staff turnover actually costs your business money. Direct replacement costs can reach has high as 50% to 60% of an employee’s annual salary, and total costs associated with high turnover rates range from 90% to 200% of annual salary. In total, staff turnover costs Australian businesses around $3.8 billion dollars every year.
It Improves Communication
A recent study conducted by MIT found that patterns of communication were the most important predictor of a team’s success.
Not only that, but they also found that patterns of communication were as significant as all of the other workplace success factors combined. This includes individual intelligence, skill and personality.
Team building is one of the most effective ways to help your staff develop their communication skills. That’s why taking the time and effort to invest in some quality team building events (like a custom food tour for example) can be vital to the success of your business.
It’s The Best Investment You Can Make
Don’t believe us? Well, would you believe Forbes then? In a recent article, they declared that team building is the most important investment that you can make for your team.
This is because it builds trust, mitigates conflict, encourages communication and increases collaboration. It results in more engaged employees, and improved company culture and can deliver a boost to your bottom line.
However, not all team building events are created equal. The most successful and memorable ones are those that don’t feel like a regular day at the office. Spending time together, sharing a fun experience and working towards a common goal allows team bonding to happen more organically and far more effectively.
Book one of our custom team building food tours and this is exactly what you’ll experience. We can design a tour to suit your exact needs and budget. And remember, every dollar you invest in your team building day with us will repay itself many, many times over.
Get in touch with us today at firstname.lastname@example.org or click here to find out more.