At some point in your career, you’ve probably participated in team-building exercises that made you wonder, “What’s the point?” Maybe they were useless group activities that everyone mocked under their breath. Or maybe they were inconsequential events with colleagues that, while fun, didn’t change the way anyone interacted in the workplace.
Team-building activities don’t have to be this way. They can improve a team’s productivity and efficiency. The key is to approach team building strategically. To do that, you have to know what it means to build a team and how to measure a team’s performance.
Employee turnover is expensive—more so than you might think. According to a recent survey by the Society for Human Resource Management, the average cost-per-hire is $4,129. However, turnover costs can vary depending on the length of time it takes to fill the role, the importance of the position to the employer, and the employer’s industry. Some costs are easily calculable, such as those of recruiting, hiring, and onboarding. Other costs can be difficult to measure, such as the impact of a termination on employee engagement. Easily measurable or not, all these costs hurt your bottom line.