Team building is important because it brings out the best in team members. It helps the team discover the goals, values, and strengths of each member. It allows every member to become better team players, commit themselves to each other, to the customers, and to the mission of the organization.

Team building refers to the process of developing a team’s ability to achieve its purposes and goals. This process may include acquiring new knowledge, shaping values, and building the competencies of each team member. 

I’ve been facilitating team building since 2007. I see it as a strategic learning experience. For me, team-building games are not just for entertainment; they are meant to build successful teams. I play team games to help teams adopt a winning mindset and build crucial skills.

So, if you are one of those who experienced the fun and entertaining team building, but have not experienced a big improvement in team performance and culture, this is a good opportunity for you. You will discover at least 25 reasons why team building is important for your company.

Why is team building important?

Team building brings many benefits. While it may require time, effort, and resources, the benefits of team building can have a positive impact on the overall productivity and success of an organization.

By investing in team-building activities, organizations can improve communication, collaboration, and trust within their teams, which can lead to better performance, increased motivation, and job satisfaction.

In the long run, this can translate into higher profits, better employee retention, and improved customer satisfaction. Therefore, investing in team building is not only beneficial for the team members but also for the organization as a whole.

Allow me to share with you the 25 reasons why team building is important to the growth of your organization.

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Team building increases profitability.

Investing in team-building activities can significantly impact an organization’s profitability. 

When employees are motivated, engaged, and have strong relationships with their colleagues, they are more likely to work together effectively, resulting in improved productivity and performance. 

Employees who feel valued and supported by their company are more likely to stay with the organization long-term, reducing turnover and associated costs.

A study by Gallup found that companies with engaged employees have 21% higher profitability than those without. 

In another study, businesses that invested in employee development programs saw a 24% increase in profit margins. 

These statistics illustrate the powerful impact that team building can have on an organization’s bottom line.

Moreover, team-building activities can help identify and address areas for improvement within an organization, leading to increased efficiency and cost savings. 

A team-building exercise focused on time management could help employees identify areas where they are wasting time or could be more efficient, leading to increased productivity and cost savings.

Investing in team-building activities is a smart financial decision for any organization looking to improve performance and profitability. 

By improving communication, motivation, problem-solving skills, and teamwork, team-building activities can significantly impact an organization’s success.

Increased profitability is the first reason why team building is important.

team communication

Team building improves communication.

Improved communication is one of the most significant benefits of team-building activities in the workplace. Participating in team building activities allows team members to communicate and interact with each other outside of the typical work environment. Team building helps to break down any communication barriers and promotes better communication in the workplace.

For example, a research team in Makati has been experiencing communication breakdowns that have resulted in missed deadlines and misunderstandings. They are only 17 people in the organization. But they seldom had the opportunity to speak to each other.

Ana, the General Manager decided to organize a team-building activity that involves a problem-solving exercise that requires team members to work together and communicate effectively to complete the task. I also included bonfire sessions so they can informally exchange ideas.

Team members communicated and worked together during the activity towards a common goal. As a result, they started to build trust and develop more effective communication skills. They also found that their coworkers are fun people.

When they return to work, they become more collaborative.

Communication is one of the most important soft skills. You can teach people how to speak fluently. But team communication is more than speaking. It involves trust. Team building makes it easy for people to experience authentic communication.

Improved communication is another reason why team building is important.

Team building increases employee motivation.

When employees feel that they are part of a team working towards a common objective, they are more likely to be motivated to put in the effort to achieve it

A company that organizes a charity event, such as a fun run or volunteering in the community, can foster team building while contributing to a meaningful cause. You can put team building and CSR budgets together. It is cost-effective.

Employees who participate in such activities tend to feel more motivated and invested in their work, as they are part of something larger than their job.

Another example of team building that can increase motivation is creating friendly competition within the team. 

For instance, a sales team can divide into smaller groups and compete against each other to see who can generate the most sales in a certain period. 

This type of activity encourages teamwork and collaboration and instills a sense of friendly competition that can motivate team members to perform at their best. To prepare your team for this friendly contest, you can bring a program that builds a growth mindset and break barriers. I use Break the Records to help teams unlock many opportunities.

Activities that are engaging and meaningful can help employees feel more motivated and invested in their work, leading to improved job satisfaction and productivity. Again, this is one reason why an investment in team building is important.

team problem solving

Team building improves problem-solving skills.

Team building is important because it can enhance the team’s ability to solve problems.

Team building activities that focus on problem-solving can help team members develop critical thinking skills that are essential in the workplace. 

For example, a company can organize a team-building exercise where employees are presented with a complex problem or challenge and must work together to find a solution. I often do this to executive teams for leaders want you to challenge them.

This type of activity encourages collaboration, communication, and creative thinking, all of which are vital for effective problem-solving.

By participating in problem-solving activities, team members can develop skills that are transferable to the workplace, such as the ability to think creatively, work collaboratively, and solve complex problems. 

Team building enhances creative thinking skills.

Team building activities that encourage creative thinking can help employees develop new ideas and approaches to their work.

For example, a company can organize a brainstorming session where team members are encouraged to share their ideas and suggestions for improving a particular process or product. You can do it in an hour or two. And regularly. Look for gamestorming. I often use gamestorming tools in building successful teams.

This type of activity encourages team members to think outside the box and can lead to innovative solutions.

Another example of creative activity is a painting or art class. This activity can help team members tap into their creativity and develop new skills while building stronger relationships with their colleagues.

By participating in creative activities, team members can develop their creativity, leading to more innovative ideas and approaches in the workplace. Team building is an important investment in people.

team productivity

Team building increases productivity.

By improving communication, motivation, and problem-solving skills, team-building activities can increase productivity and better performance.

A sales team in a tech company needed help meeting their targets due to poor communication and collaboration.

After participating in a team-building workshop in Antipolo that focused on improving communication and building trust, the team was able to work together more effectively, resulting in a 20% increase in sales.

A marketing team in a startup struggled to meet deadlines and produce quality content due to a lack of motivation and burnout. 

After participating in a team-building event focused on work-life balance and stress management, the team felt more energized and motivated, resulting in a 30% increase in content output.

These examples showcase how team building can increase productivity and better performance in various workplace settings.

I don’t know how big is a 20 percent increase in sales to you. But if sales increases give you more money than what you invest, team building is important. And if I were you, I will do it again and again so my people can improve themselves.

Team building builds stronger and healthy relationships.

Team building activities are a great way to foster strong relationships among team members. These activities often involve working together on a shared task or goal, which can help build trust and respect among team members.

For example, a team-building activity at a software development company may involve working together to create a new software product or feature. Why not? Who says all you have to do in team building is to play silly games?

By working together on this project, team members can better understand each other’s strengths and weaknesses, as well as their communication and problem-solving skills.

When team members feel supported and valued by their colleagues, they are more likely to work together effectively and achieve better results.

team trust

Team building builds trust.

Trust is the superglue of teams. When people trust each other, teamwork happens. Teamwork makes ordinary people produce extraordinary results. Team building activities focusing on trust-building can help employees learn to rely on each other and develop more trust in their colleagues.

In a software development company, a team of developers struggled to trust each other. They were working on a complex project with a tight deadline, with frequent miscommunications and misunderstandings between team members. 

To address this issue, the team leader organized a team-building activity focused on trust-building exercises. I helped them understand how their personal values influence their ability to trust others. I shared the ideas I got from the book Speed of Trust. And I guided them in a Speed of Trust game that I designed 10 years ago.

During the activity, the team members had to complete a series of tasks requiring them to trust and rely on each other. These exercises helped the team members build confidence in each other’s abilities and better understand their strengths and weaknesses. 

By the end of the activity, the team members had developed a stronger sense of trust, and their communication improved significantly. As a result, they were able to work more efficiently and effectively together, leading to better project outcomes.

Team building is important. And I can help you design one that works.

Team building enhances leadership skills.

Natural leaders often reveal themselves when the team is challenged to win. This is the most common observation of managers who trusted me to design programs for them. Some are young people who kept themselves “invisible” until that day.

Team building activities that focus on leadership development can significantly impact employees’ leadership skills. These activities help employees develop communication, decision-making, and delegation skills, essential for leadership excellence.

For example, a company may conduct a team-building activity where employees are divided into teams and tasked with completing a project within a specified timeline. Each team is led by an individual responsible for delegating tasks, managing the team’s progress, and ensuring the project is completed on time. 

Through this activity, team members can develop leadership skills, learn to work together more efficiently, and better understand each other’s strengths and weaknesses.

Most of my team-building programs are designed to bring out the leaders in them.

Another example of an activity that can enhance leadership skills is a role-playing exercise. In this exercise, employees are divided into groups and assigned different scenarios that require them to make crucial decisions and take charge. 

By simulating real-life situations, employees can develop skills such as conflict resolution, problem-solving, and decision-making, which are essential for effective leadership.

Activities that focus on leadership development can significantly impact the success of a team and the organization as a whole. 

By investing in these activities, companies can develop a pool of capable leaders to help drive the organization forward.

Developing leaders is another reason why team building is important.

Team building increases employee retention.

You’ve got to keep your best employees. Team building activities can help employees feel more connected to their workplace, increasing employee retention. Employees who feel connected to their colleagues and the company are likelier to stay with the organization. 

Team building activities can create a sense of belonging and help employees feel invested in the company’s success. 

For example, a marketing company implemented a weekly team lunch where employees were encouraged to share personal stories and get to know one another better. 

This simple activity created a more positive workplace culture, increasing employee satisfaction and retention.

You know how expensive it is to hire employees. And you know how beneficial it is to retain champions. Team building is a small investment. You don’t even have to leave your office to build teams.

culture of winning

Team building improves company culture.

Team building activities are a great way to strengthen a company’s culture and promote positive values like collaboration and teamwork. 

When employees feel like they are part of a supportive team, they are more likely to feel invested in their work and committed to the company’s success.

For example, an investment house in Makati City held a team-building event where employees had to work together to create videos of their workplace culture.

The event helped employees learn how to work together more effectively and fostered a sense of community and camaraderie. 

After the event, employees reported feeling more connected to their colleagues and the company.

Similarly, a BPO company in Taguig regularly holds team-building events like game nights and potlucks. 

These events help build a strong sense of community and shared values among employees, translating into a more positive and supportive work environment. As a result, the company has seen increased employee satisfaction and lower turnover rates.

When team building activities are implemented effectively, they can have a significant impact on a company’s culture, promoting positive values and a sense of community among employees. 

This, in turn, can lead to increased employee satisfaction, productivity, and retention rates.

Team building increases employee satisfaction.

Employees engaged in team-building activities are more likely to feel satisfied with their jobs and the work environment. 

This, in turn, can lead to increased productivity and a higher quality of work. 

For example, a training company in Tagaytay held an event where employees worked together to design and build a functional website in just one day. 

The event improved teamwork and communication and boosted employee satisfaction as they worked collaboratively and creatively towards a shared goal. 

As a result, the company saw a significant increase in productivity and employee retention rates.

Team building is important because it improves better customer service. The photo shows women answering calls in a call center.
25 Reasons Team Building Is Important 43

Team building renews customer commitment.

Activities that focus on communication and problem-solving can help improve customer service by encouraging a more customer-focused mindset.

In a call center, team building can improve customer service by fostering better employee communication and problem-solving skills. 

For example, an exercise could involve role-playing scenarios where team members act out different customer service situations and work together to find solutions. 

This exercise can help employees develop empathy for customers and learn to collaborate to provide the best possible service. 

As a result, customers are more likely to feel satisfied with their interactions with the call center and more likely to return in the future.

Team building improves time management.

Activities focusing on time management can help employees understand the importance of managing their time effectively. 

For example, an activity could involve setting up a project with a tight deadline and limited resources. This will force team members to prioritize tasks, delegate responsibilities, and manage their time efficiently to meet the deadline.

Another example of a time-management activity could be a simulation involving a time-critical task requiring team members’ coordination and communication. 

The activity can simulate a high-pressure environment, helping employees understand the importance of planning and prioritizing tasks, delegating responsibilities, and keeping track of time.

Team members will learn to work together more efficiently and effectively, ensuring that tasks are completed on time and with the highest level of quality. 

These activities can translate to better time management in the workplace, leading to increased productivity, better performance, and improved results.

team meetings

Team building teaches the team how to hold efficient meetings.

Team building activities that focus on improving communication and collaboration can significantly impact the efficiency of workplace meetings. 

For example, an activity that involves brainstorming and problem-solving can help employees develop better communication skills and improve their ability to work together effectively.

As a result, meetings can become more productive and efficient. 

Team members are better equipped to articulate their ideas and collaborate, which can lead to more successful outcomes.

Investing in activities that promote better communication and collaboration can significantly impact the efficiency and effectiveness of workplace meetings.

Team building increases employee engagement.

Employee engagement refers to employees’ emotional commitment and involvement with their work and organization. 

Engaged employees are typically more productive, motivated, and committed to achieving company goals. 

Team building activities can play a significant role in increasing employee engagement, and here are some examples of how:

Volunteer work: Encouraging employees to volunteer in their communities as a team can help create a sense of purpose and fulfillment, leading to increased employee engagement.

Group brainstorming sessions: Team building activities that involve brainstorming and idea generation can help employees feel more involved in the company’s decision-making process, leading to increased engagement.

Social events: Organizing social events, such as company picnics or happy hours, can help employees connect on a personal level and build stronger relationships, leading to increased engagement.

Skill-building workshops: Providing opportunities for employees to learn new skills through workshops or training sessions can help employees feel more invested in their careers, leading to increased engagement.

Health and wellness activities: Encouraging employees to participate in health and wellness activities, such as group fitness classes or walking clubs, can help employees feel more supported and cared for, leading to increased engagement.

Recognition programs: Implementing recognition programs, such as employee of the month awards or peer-to-peer recognition programs, can help employees feel valued and appreciated, leading to increased engagement.

Team building activities can play a crucial role in increasing employee engagement by creating a positive and supportive work environment where employees feel valued and connected to their colleagues and the company.


Team building enhances teamwork.

Teamwork is crucial for achieving business goals and objectives. Team building activities can help develop teamwork skills and encourage employees to work together effectively. 

These activities can be fun and engaging, and they can help build stronger relationships among team members. Workplace examples of team building activities that enhance teamwork include:

Problem-solving challenges: Activities that require group problem-solving can help employees work together to find solutions to complex challenges. 

For example, a team-building exercise could involve solving a puzzle or riddle together.

Collaborative projects: Team building activities that involve group projects can help employees learn to work together towards a common goal. 

For example, a team-building exercise could include creating a group art project or building a structure out of building blocks.

Sports and games: Sports and games can be a fun way to encourage teamwork and collaboration. For example, a company picnic could include a friendly game of volleyball or soccer.

Team-building retreats: Team-building retreats allow members to bond and work together in different settings. 

For example, a company might organize a camping trip or a weekend retreat to help employees connect and build stronger relationships.

Team building activities that enhance teamwork can lead to more effective collaboration and better business results. 

Team building improves conflict resolution abilities.

Just as a river flows around obstacles, team-building activities can help employees learn to navigate workplace conflicts and reach their goals smoothly. 

For instance, an activity like role-playing scenarios involving workplace conflicts and finding constructive ways to resolve them can help develop conflict resolution skills.

An example of this in the workplace is a sales team struggling with interpersonal conflicts and misunderstandings. 

The team leader organized an activity where team members had to role-play scenarios that often led to conflicts. 

Through this activity, team members were able to understand each other’s perspectives better and learn constructive ways to resolve conflicts. 

As a result, the team’s communication improved, and they could work together more effectively toward achieving their sales targets.

team innovation

Team building encourages innovation.

Team-building activities encouraging creativity and outside-the-box thinking can increase innovation and new ideas.

Imagine a team working in a marketing agency tasked with developing a new campaign for a client. They worked on the project for weeks but struggled to create fresh ideas. 

They decided to take a break from their usual routine and participate in a team-building activity focused on creative problem-solving. 

They were encouraged to think outside the box and brainstorm unconventional ideas during the activity.

After the activity, they returned to their campaign with renewed energy and creativity. Inspired by the activity, they developed a bold and innovative campaign that impressed their client and set them apart from their competitors. 

The team-building activity helped them break out of their routine and think in new and exciting ways, leading to increased innovation and success in their work.

Team building makes the team adaptive.

Adaptability is an essential skill in today’s rapidly changing business landscape. 

Team building activities can help employees become more adaptable and comfortable with change. 

For example, a company may have a team-building activity where teams must build a structure using only limited resources within a specific time frame. This exercise challenges employees to think outside the box and adapt to unexpected situations. 

Another activity may involve role-playing scenarios where employees must adapt to changing circumstances, such as a sudden change in project direction. 

These types of team-building activities help employees develop their adaptability skills and feel more confident in handling changes and challenges in the workplace.

employee wellness

Team building improves employee wellness.

By providing an opportunity to step away from work and engage in physical activity or stress-reducing exercises, employees can return to work feeling refreshed and energized.

For example, some companies organize team-building activities like group fitness classes, yoga sessions, or hiking trips. These activities provide a break from the sedentary lifestyle often accompanying office work and promote physical wellness. 

Other team-building activities like mindfulness exercises, meditation sessions, or stress-management workshops can help employees improve their mental health and reduce stress levels.

By promoting healthy habits and prioritizing employee well-being, companies can create a culture that values work-life balance and employee happiness. 

Team building promotes diversity and inclusion.

Team building activities can help promote diversity and inclusion by encouraging open communication and understanding among team members.

Here are activities that you may try.

Cultural Potluck: Encourage employees to share a dish or food that is significant to their cultural heritage. This helps create a safe space for employees to discuss their culture and learn from one another.

Diversity Training: Conduct an activity that focuses on diversity and inclusion training. The training can help employees learn to be more aware of their biases and how to interact with people from different backgrounds.

Community Service: Encourage employees to volunteer together for a community service project. Volunteering promotes teamwork, and working together towards a common goal can help break down barriers and encourage a more inclusive work environment.

Mentorship Programs: Establish a mentorship program that pairs employees from different backgrounds. This helps employees learn from one another and gain insight into different perspectives and experiences.

Employee Resource Groups: Create employee resource groups that focus on diversity and inclusion. These groups provide a forum for employees to discuss issues related to diversity and inclusion and help create a more inclusive work environment.

emotional intelligence

Team building enhances emotional intelligence.

Emotional intelligence is a crucial skill in the workplace that enables employees to manage their emotions and communicate effectively with colleagues. 

Team building activities that focus on emotional intelligence development can help employees become more empathetic and emotionally intelligent in the workplace.

For example, a team-building activity that focuses on conflict resolution, where employees are encouraged to listen to each other’s perspectives, empathize with their colleagues, and work together to find a resolution. 

This activity helps employees build emotional intelligence by teaching them how to navigate and manage their emotions in a tense situation while also demonstrating the importance of empathy and understanding in resolving conflicts.

Activities that involve mindfulness practices, such as meditation or yoga, can also help improve emotional intelligence by teaching employees how to manage stress and cultivate a greater sense of self-awareness.

Team building makes team members collaborate.

Collaboration is key to success in the workplace, and team-building activities can help encourage collaboration among employees.

For example, a company may organize an activity that requires employees from different departments to work together to solve a complex problem. 

This type of activity can help break down silos and encourage collaboration across departments.

team meetings

Team building teaches the team to make better decisions.

Team building activities involving decision-making scenarios can help employees develop their decision-making skills. 

One such activity is the “Lost at Sea” exercise, where employees are given a scenario of being lost at sea and have to make decisions about what items they need to prioritize for survival.

In a workplace example, a marketing team may participate in a team-building activity that involves making decisions about a new marketing campaign. The team can discuss various ideas and approaches and use critical thinking to determine the best action.

By practicing decision-making in a team setting, employees can learn to work together to consider different perspectives, analyze information, and arrive at the best decision for the team and the organization. 

In conclusion, investing in team-building activities is wise for any organization. By improving communication, motivation, problem-solving skills, team dynamics, and much more, team-building activities can lead to a more prosperous and profitable organization.


About The Author

We can facilitate your next team building.

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Build Teams

Build teams the right way. Help team leaders solve problems and create opportunities. Equip them with skills so they can make it easy for teams to win, win, and win.

Jef Menguin

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