As businesses face growing economic pressures, many are questioning where to cut costs and what to prioritise in their budgets. One strategy that some are finding invaluable, even in times of uncertainty, is investing in team building. Far from being a luxury, team building activities are now seen as a crucial investment in both employee wellbeing and business success.
Research from Gallup underscores the benefits of employee engagement, showing that highly engaged teams are 21% more productive and experience 41% lower absenteeism. For many FTSE 250 companies, team building is proving to be a smart strategy to boost productivity, reduce turnover, and foster a more collaborative workplace culture.
Charles Berry, Co-Founder of Zing Events—a team building company with many FTSE 250 clients—believes the benefits are clear. “Companies that continue to invest in their teams are seeing measurable results,” he says. “Team building strengthens company culture, boosts motivation, and enhances overall engagement.”
Breaking Down Silos and Enhancing Collaboration
A common challenge for many organisations is departmental silos, which can lead to inefficiencies and reduced morale. Team building exercises are designed to break down these barriers, enabling employees from different departments to connect, communicate, and collaborate. Activities such as escape rooms or problem-solving workshops create opportunities for cross-functional engagement, which, according to a McKinsey study, can result in a 21% increase in profitability.
Boosting Employee Engagement and Reducing Costs
Employee engagement is a driving factor behind high performance and retention. Engaged employees are more likely to contribute meaningfully and stay with their employer long-term. In fact, disengaged employees are costing the UK economy an estimated £70 billion annually in lost productivity. Team building activities such as team challenges and interactive workshops are simple yet impactful ways to boost morale, giving employees a sense of belonging and purpose within their organisation.
Supporting Mental Health and Wellbeing
With stress in the workplace on the rise, companies are increasingly turning to team building as a means of supporting employee mental health. These activities not only provide an outlet for employees to unwind but also promote team bonding in a relaxed, non-competitive setting. From outdoor adventures to immersive escape room experiences, team building activities allow employees to return to work feeling re-energised, ultimately benefiting productivity and reducing absenteeism.
Strengthening Diversity, Equity, and Inclusion (DEI)
Team building can also play a pivotal role in strengthening diversity, equity, and inclusion (DEI) efforts. Activities that encourage interaction across diverse groups of employees help break down barriers and foster a culture of respect and understanding. With company culture now a key factor in job seekers’ decision-making, a strong DEI strategy is essential for attracting and retaining talent.
Improving Retention and Reducing Turnover Costs
Employee turnover can be costly, with estimates ranging from £30,000 to £50,000 when accounting for recruitment, onboarding, and lost productivity. Team building helps create a culture where employees feel valued, ultimately leading to increased loyalty and reduced turnover rates.
For many FTSE 250 companies, team building is seen as a recession-proof strategy that supports long-term business success. Despite the financial challenges presented by the current economic climate, companies that continue to invest in team building activities are reaping the rewards of higher employee engagement, improved collaboration, and stronger retention.
Zing Events, which has been a leader in corporate team building for over a decade, offers a wide range of activities designed to improve workplace culture, from in-person events in London to virtual sessions for global teams.