What is the size of your team? 4, 10, 50, 100 or more? Do they work well together?

If not, you are losing time, productivity and money every day.  Team building and team management is the only way you can solve this problem. 

No, I’m not talking about those “trust fall” team-building activities. Actual team building creates a work environment where your team backs each other up, communicates, and works together efficiently.

What is Team Building?

Team building means helping a group of like-minded people grow and collaborate effectively to achieve a common goal for the company.

Importance of team building

15 Benefits Of Team Building

Most business owners think like this…”I’m already juggling customers, finances, daily operations, marketing and sales. When will I do  team building?” 

That’s exactly why you need simple, time-efficient strategies that build a strong team without adding to your workload.

Here are 15 benefits you’ll gain from team building –

Increases Productivity

Employees complete tasks faster and understand each other’s strengths and weaknesses. Work is allocated more effectively, avoiding holdups and preventing duplication.

The team devotes less time to resolving internal disputes and focuses more on their work.

How to put this into action?

  • Hold quick morning meetings to sync up tasks.
  • Use task-sharing tools like Trello or Asana to keep track of work.

Example

A business in Jaipur had problems with slow production because the staff weren’t working well together. After starting daily morning check-ins, production speed increased by 15%, as team members coordinated their efforts better.

Slack reports that 90% of workers using AI at work see a big jump in their output, but 27% of companies invest in this tech.

Encourages Creativity

Team building allows employees to share unique solutions and ideas for problems and innovations. The team works together on new ideas instead of working alone.

How to put this into action?

  • Set up monthly sessions where everyone can share their ideas.
  • Give rewards for fresh & creative suggestions.

Example

A small bakery in Mumbai became a hit with a cake that became their top seller. It all started when a new baker pitched an out-of-the-box recipe. The owner got everyone together once a month to share ideas, which led to new and exciting products.

A PWC study finds that 77% of top company bosses see creativity as key to business growth.

Enhances Communication

With clear communication, job expectations are clear to everyone. Employees feel heard and valued, they know their voice matters, which helps decrease workplace conflicts.

How to put this into action?

  • Use Slack or WhatsApp groups to get daily updates.
  • Set up open discussion meetings where staff can talk about problems.

Example

A marketing firm cut down on mix-ups by starting weekly check-ins. Team members shared updates, concerns, and thoughts. This led to 30% less do-overs and confusion.

Just 5.9% of companies communicate daily with their workers about their goals.

Improves Morale

When employees feel supported and recognised, stress levels go down and job satisfaction goes up. A positive team environment helps everyone feel the company’s growth is theirs.

How to put this into action?

  • Schedule relaxed team lunches or quick coffee breaks together.
  • Praise employee efforts in front of others.

Example

A print shop in Chennai saw workers often feeling worn out. After starting team outings and casual Fridays, they felt relaxed, and output increased by 20%.

In “State Of The Global Workplace” report, Gallup concludes, “85% of employees are not engaged or (are) disengaged at work.

Builds Trust

Shared experience strengthens team bonds, and employees feel safe to ask for help and offer help. This creates a collaborative culture where teamwork thrives without fear of rivalry.

How to put this into action?

  • Encourage employees to team up on projects.
  • Bring in rewards based on team performance.

Example

A chain of retail stores in Delhi set up a system for employees to recognise their coworker’s efforts. This built trust and improved teamwork in them.

Research from MIT Sloan reveals that employees who trust their companies show 260% more motivation to work, miss 41% fewer days, and have a 50% lower likelihood of job-hunting.

When employees connect, collaborate, and trust each other, performance naturally follows.
If you’re looking for a proven way to make that happen, this can help
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Identifies Leaders

Team members take charge when given the chance and support another team member. This helps team members to become future managers.

How to put this into action?

  • Run group tasks and see who steps up to lead.

Example

A restaurant owner noticed a kitchen worker had excellent organising skills. After observing her leadership in team activities, the owner later appointed her as the kitchen manager.

A Fortune survey of CEOs found that just 7% believe their company develops effective global leaders. Another study by O.C. Tanner showed that 21% of employees think their managers lead them well.

Discovers Strengths & Weaknesses

Employees & leaders discover who’s good at solving issues, getting things in order, or dealing with customers. This helps team leaders to assign tasks more effectively

How to put this into action?

  • Give workers different roles for a short time to spot their talents.

Example

A clothing brand found that one worker had a skill for arranging displays after a team store setup task. They moved her to design displays, which boosted sales.

Builds Self-Confidence

Employees are more willing to take the initiative, start tasks without micro-management, and the team gets better at decision-making.

How to put this into action?

  • Run practice/trial client interaction sessions.

Example

A sales intern at an IT company felt unsure during client meetings. After joining the team role-playing sessions, he built his confidence and secured three significant deals in a month.

Another report found that 93% of workers saw their confidence take a hit because of things that happened on the job.

Boosts Motivation

Employees become more committed to their tasks, put in more effort, and take responsibility for their work, which helps reduce absenteeism.

How to put this into action?

  • Give rewards based on performance

Example

A startup in Bengaluru saw a 30% decrease in absences after starting a monthly “Top Employee” award program.

A McKinsey report found that 67% of employees ranked positive feedback and recognition as the top things that get them going, picking these over cash bonuses and other money-related perks.

Inspires Teamwork

Team members work as a team instead of competing, which leads to more streamlined project completion, and problems get faster solutions. 

How to put this into action?

  • Set up team-based problem-solving tasks.

Example

A logistics company boosted its productivity by 40% after it switched from individual performance reviews to team-based success evaluations.

A Deloitte study reveals that 73% of employees involved in collaborative work see better performance, while 60% claim it boosts their creativity.

Connects Remote Teams

With the right team-building activities, employees stay engaged and connected virtually, which helps reduce isolation in remote work.

How to put this into action?

  • Use tools like Zoom or Microsoft Teams for team-building activities.

Example

A tech company saw a 50% jump in remote employee retention after they fixed weekly virtual team bonding sessions.

Owl Labs and Global Workplace Analytics found that 74% of workers feel more content when they work from home.

Promotes Health and Reduces Burnout

Reduced work stress and improved mental health lead to better focus, energy, and a productive team.

How to put this into action?

  • Add short breaks during the day.
  • Set up team fitness challenges and encourage everyone to participate.

Example

An IT company started flexible hours and team health activities. This reduced employee burnout by 40% and increased output.

Harvard Business Review’s 2023 report states that tired managers are 1.8 times more likely to quit their jobs than those who aren’t.

Strengthens Company Culture

Attracts top talent, and as people want to work in a positive work environment, it improves customer experience, as happy team members treat customers better.

How to put this into action?

  • Make sure team activities match what the company stands for.

Example

A shop in Bengaluru found that when employees were happier, they treated customers better, which led to more repeat business.

Research shows 81% of workers think company culture plays a big role when applying for a job.

Improves Problem-Solving Skills

The team approaches challenges with a problem-solving mindset and easily adapts or adjusts to unexpected problems without much trouble.

How to put this into action?

  • Use real-world case studies in team meetings.

Example

A delivery company got better at solving problems after they started talking about work challenges each week as a team.

Workers are 18 times more likely to do great work when someone notices their efforts.

Encourages Smarter Risk-Taking

The team gets comfortable taking calculated risks and feels sure enough to try new ways of doing things.

How to put this into action?

  • Give rewards for new ideas for their efforts, even when they don’t work out.

Example

A company in Pune pushed for taking chances, which led to a fresh product range that boosted income two times.

41% of employees want to change engagement or culture, 28% want better pay or benefits, and 16% want to improve their employers’ 

Final Take

Team building isn’t just an HR activity, but also one of the entrepreneurship skill. It’s a business strategy. For MSMEs like yours, creating a well-connected and productive team is one of the smartest moves you can make for successful projects.

Start small, but start building your dream team and watch your business grow!