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How Team Building Events Increase Employee Productivity and Workplace Morale

Writer's picture: Nina TsenovaNina Tsenova




Imagine if you could magically change the atmosphere in your company, increase employee engagement and achieve better business results at the same time. Sound like an advertising slogan? Maybe. But with well-designed team building activities, backed by research and practice from successful companies, managers are often convinced that it actually works. After all, team building is not just "company hopping" but a key tool for boosting productivity and raising morale.


The Psychological Benefits of Team Building to Boost Employee Productivity


At first glance, it may seem that any informal event outside the office is automatically "good team building". In reality, it is a thoughtful process that induces psychological changes and strengthens mutual trust. The study "Mapping and managing productive organizational energy over time" (Vogel, Raes, & Bruch, 2022) shows that people perform better when they feel part of a meaningful whole. Without friendships and shared experiences, you lose valuable creativity and motivation.


People in business attire, smiling and engaged, sit at a conference table with blue folders and water bottles, in a well-lit room.

How Well-Structured Activities Improve Problem-Solving Skills


Team building events work best when they encourage active collaboration. This can include outdoor challenges, logic games or simulated crisis situations. A hospital facing the COVID-19 pandemic is a prime example that shared efforts are necessary to maintain quality of care. Activities that require coordination expose weaknesses in communication and planning, thus allowing for appropriate improvements. A trained team adapts quickly to change, solves problems and pulls together.


Real Examples of Companies with Increased Productivity


You may be thinking, "Where's the data?" For example, H&R Block lifted employee retention and saw stock growth when they started to address wellbeing and strengthened team activities. Research from Oxford University confirms that companies with high employee satisfaction scores outperform financially and outperform stock indices. The hard data speaks clearly:


‘Team building combined with systematic care for people moves a company forward.’

 

Creative Ideas for Different Working Environments


Teambuilding doesn't just mean a weekend trip where we drink until dawn and pretend it's awesome. Modern times demand a flexible and original approach. Are you in hybrid mode? Try a virtual escape game. Working fully remotely? There are online tournaments in improv exercises where participants have to think and collaborate together. Or consider outdoor volunteer projects where you combine physical activity with helping the community. The result? A sense of purpose, cohesion and usefulness.


Why You Need It (and Why It Should Concern You If You Don’t Do It)


If you keep putting off team building, you're missing out on the energy people would invest in growing the company. You're competing for talent, and without space to develop relationships, you risk key people leaving for a better culture elsewhere. Rising rates of absenteeism and burnout?


A clear signal that motivation is being lost. A disgruntled workforce is a ticking time bomb, and team building is one tool that can prevent performance slumps early on. In addition, analyses of the so-called Productive Organizational Energy (POE) show that teams that are overworked for long periods of time without sufficient recovery quickly lose momentum. Team building helps keep their energy in a positive spiral, increases resilience to stress and promotes long-term performance. This is proven by the experience of successful companies.


Team Building Is Not a Luxury — It’s an Investment


A number of studies show that the most profitable investment is in human capital - those who turn company goals into results. Don't be afraid to pay for a somewhat "unusual" activity if it will actually bring positive energy to your team. The memory of a unique adrenaline experience will create bonds within the team that will translate into loyalty and increased productivity. People need to feel that they are valued and that they are being treated to something special.


How to Sustain Team Energy


A one-off event will help, but the effect can wear off quickly. So consider regular mini-meetings or daily "huddles" where the team briefly syncs up and shares successes. Be interested in wellbeing in a broader context: keep an eye on people's needs, not just physical but also mental or financial. And give them space to share personal goals, which builds trust.


Maintain high performance without burning people out it's not about how hard they can work, it's about the environment they work in: Here's what really works:


  1. A mission that inspires - If employees don't say "yeah, this really makes sense!", you're doing something wrong. Show them that their work is changing the world - at least your company's.


  2. Evaluations that aren't just about numbers - Results are nice, but what about creativity, effort, trying to find a better way? If you only value numbers, you'll soon run out of people who can think.


  3. Praise is not just for bosses - Nothing makes you happier than recognition from colleagues. Establish a culture where people support each other and watch the energy in your team grow.


  4. AI as a personal assistantTechnology is not meant to overwork people. It's meant to help them work smarter. Then, employees can focus on what they are good at.



The secret to long-term high performance? Remember:

It's not how much you push people. It's how you help them grow.


What Experts Say About Workplace Friendships


According to organisational psychologist Adam Grant, friendship is an under-appreciated asset in the workplace, as it increases both satisfaction and performance. While there are still many who want to keep work and personal life separate, data shows that functioning relationships within a team lead to more effective collaboration. Although the term "work spouse" is becoming less popular today, one friendly bond at work can prevent feelings of isolation and foster deeper engagement.

 

How Platforms Like Glassdoor View It


On Glassdoor, employees frequently rate their companies based on whether they feel valued, have growth opportunities, and are treated fairly. Companies that score highly in the "Culture & Values" category tend to be more attractive to job seekers. Imagine a potential candidate reading reviews highlighting your company’s strong team spirit and supportive culture—this is a key advantage in today’s job market. If you’re looking to attract and retain top talent, cultivating company culture through team building is one of the most effective strategies.


Is It Worth It?


If you’re still unsure, consider the data. Studies from Oxford and Indeed confirm that companies with high employee productivity also perform better financially. Team building fosters collaboration, encourages innovation, and strengthens relationships, ultimately driving revenue growth and increasing shareholder value. Your competitors recognize this and are leveraging it—so why wouldn’t you? Boost the employee producutivity.




 

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