This article is written to provide you with an understanding of why Company Events and Team Building are important to create a strong company culture.
Company events, team building, and other social function programs are common business ventures that most companies practice with the intention of encouraging employees to interact with one another. This gives employees a moment to step back from the daily activities of work and engage with their colleagues with whom they may or may not converse with regularly in an informal atmosphere, whether it be inside or outside of the office premises.
Now, there is sometimes a negative connotation around these events, generally this perspective comes about because the company may not have a positive culture due to various factors. However, activities like these are exercised to assist in fostering a feeling of cohesiveness to build a strong and positive company culture and maintain effective business relationships.
Company events, team building, and other social function programs are an expense that a business incurs and many of you might be thinking, “Why spend money here, when you can spend it elsewhere or save it during hard times?” If this is a concern that you are thinking, we completely understand why, but allow us to explore why they are truly beneficial.
Social events and programs are not just fun, it goes beyond that! Let’s take a quick step back and see the bigger picture. There is more to a business than profit and loss, running a successful business takes all other factors into consideration, which includes the workforce. Your workforce is the most expensive individual asset that your business has, which is why we recommend investing in your workforce to create a fun, collaborative, and cohesive work environment.
Investing in your workforce doesn’t mean that you have to spend large amounts of capital to appease the masses, it’s geared towards giving your employees a break and providing them an opportunity to be social, since humans are social animals by nature.
When a business invests their efforts into the workforce by arranging a company event, team building activity, or implementing other social programs, in return the workforce is generally happier and enjoys working for the business. Businesses that have regular social functions and programs in place do notice a difference in their workplace when there is a fun and happy aspect. The main returns of this investment include:
- Increased Employee Retention
- Increased Company Morale
- Increased Teamwork and Collaboration
- Increased Employee Engagement and Building Relationships
- Increased Productivity and Work Output
When employees have social interaction, it leads to a happy and fun work environment as they feel appreciated. This effect will typically be demonstrated with an increase in motivation, willingness to take on more responsibilities, and overall enjoyment of working with others which in the end increases the quality and quantity of work output.
A study was done by The Corporate Leadership Council1 who surveyed and found that engaged employees are 87% less likely to leave their companies than their disengaged counterparts, who are four times more likely to leave their jobs because they are dissatisfied.
When you have a satisfied and engaged workforce, you increase retention, have lower absenteeism, and reduce turnover. When you invest in your employees’ satisfaction, you can yield a positive ROI (Return on Investment) by ensuring that your business environment is a fun and enjoyable experience for people to work! This can be accomplished by planning events to give your employees a break from the everyday grind. By doing this, you demonstrate your appreciation and leave your employees feeling valued for their hard work and dedication.
What Are Some Examples of Company Events, Team Building Activities, or Social Programs?
- Christmas Banquet
- BBQ, Picnics, or Potluck
- City Celebration Company Tent (i.e. Stampede)
- Canada Day Celebration
- Family, Mothers, and Fathers Day Celebrations
- Luncheon or Supper
- Quarterly Keynote Speakers
- Recreational Sport Activities
- Leisure Activities
- Artistic Activities
- Scavenger Hunts
- Silent Auctions
- Social Hours
- Employee Social Certificates
- Golf Tournaments
Company events help employees feel that they are valued, and having social functions like these keep employees connected with the rest of the company in an informal atmosphere. Even something as a small company lunch, BBQ, or beach day can lead to a major boost in your company culture and employee engagement.
Now that you understand the importance of having events, team building activities, or other social programs in your company; it is important to have a guideline relating to these social functions… just to make sure things don’t get out of hand with crazy spending habits. This is why we have created a Social Function Guideline for you to download and use to create a standard around how your company handles its social functions.
With everything we discussed in this article, why not take the time to consider showing your appreciation towards your employees by planning company events? Remember, there is more to a business than profit and loss.
There’s nothing like seeing the CEO with their kids at the company picnic or relaxing on the golf course for a company-wide outing. These situations show that leaders are normal people and allows them to better connect with employees. Instead of worrying about saying the right thing in front of their boss, employees can focus on having fun and see leaders in a new light. It goes both ways; leaders can also see employees and understand who they are outside of the office.
Having a happy and fun work environment can increase employee retention, productivity, and company morale in BIG ways!
Download the Company Events – Social Function Guideline.
1 Corporate Leadership Council. “Driving Performance and Retention Through Employee Engagement.” https://nanopdf.com/download/driving-performance-and-retention-through-employee-engagement_pdf