It has been discussed time and time again that when individuals work separately, they accomplish much less then when individuals can come together and work as a team to accomplish goals. Managers across the spectrum of businesses understand the value of creating a collaborative environment, but being able to measure the success and benefits of such a thing is a more complicated task. In business, results are measured in tangible things like productivity levels, business output, and employee turnover. With an investment like team building, what is the ROI? And how do we measure it?
Educational Environment Verus Corporate Environment
When companies invest in team building events or exercises, they are investing in the education and betterment of their employees. In the educational environment like a university, we measure the value by the participants growth in the process of learning, engaging, and qualifications. Here, the cost of education is built in through salaries of the instructors.
However, in the corporate world, education is an extra cost, something that has to have proven, verifiable results. And more so than simply the “remember when we….” discussions. Business managers need to understand ways to quantify the success of a team building activity in a way that translates into business performance. This will allow businesses to understand and appreciate educational opportunities for their staff in the future.
How to Measure Team Building ROI
There are many ways that a business can translate the team building event into a quantifiable business metric. But first, we have to begin with a starting point. This baseline prior to implementing a team building event will provide us with a figure to measure our success from. Some options for this include:
- Productivity rates
- Employee turnover
- Daily/weekly/monthly profits
- Absentee rates
No two businesses are the same, so consider using the figure that best determines what changes your business needs to see. Starting with more than one figure is also a wise option, as some figures may change more dramatically than others and give you a more complete figure of the success you’ve accomplished.
Incorporate Team Building Events
A quality team building event can encourage an immediate response in your staff. However, over time, this effect diminishes. Ongoing team building activities, either with a professional instructor or through free team building activities hosted by the management, can help keep your employees on track. These events should focus primarily on helping encourage communications, problem solving as a team, and giving your staff a voice.
Measuring Team Building Success
As you complete team building events, track and monitor the team’s successes. If other aspects of improvement appear, make sure to note them and congratulate the teams on their successes. Investing in your team through education can take time, especially if it is something your company has not done previously. Your staff and your company are worth the investment.