5 Reasons Team Building is Essential for Workplace Success

23 April 2025

You’ve heard it a thousand times: “We need more team building.”

But the hard trust is that most team building isn’t building anything.

Too often, leaders confuse bonding with building, or slap the team building label on a group outing with zero structure and even less purpose. Not all team building is created equal, and the biggest confusion usually comes from two specific types: bonding and entertaining.

Just because your team went bowling doesn’t mean they’re suddenly better communicators. And no one walks out of a happy hour with enhanced collaboration skills. Fun? Sure. Impactful? Not necessarily.

In my line of work, it's important to define team experiences with precision. I break them down into four distinct types:

Informing - One way communication and updates
Building - Focused on developing specific skills
Bonding - Strengthening team relationships
Entertaining - Pure fun and morale boosting

Each one has a role. Each one has a place. But only some offer a measurable return.

Let’s talk ROI. When you invest in team building or bonding activities, especially those led by a facilitator or backed by a strong framework, you’re planting seeds for growth.

Leadership development programs, for example, show an average $7 return for every $1 invested.
Organizations with strong leadership development programs report a 25% improvement in performance and a 29% increase in employee retention.
Companies prioritizing leadership development are 4.2 times more likely to outperform their peers.
85% of employees feel more engaged after participating in team-building activities.

I'll be sharing more on how these four distinct types of team building connect to workplace success below.

Why does team building actually matter AND how do you do it right?

1. Team Building Fuels Skills Development.

Real team building centers on leveling up. It’s where your team sharpens communication, leadership, decision-making, and collaboration skills. Simon Sinek calls them human skills. Others say soft skills, people skills, or leadership competencies. I don’t care what you call them. Just build them.

This is where the “Building” type of team experience comes in. Designed with intent, focused on growth, and followed by reflection, this kind of team building should happen at least once per quarter.

2. It Strengthens Relationships That Withstand Pressure

High-performing teams trust each other. And trust doesn’t come from knowing someone’s dog’s name at trivia night. It comes from shared experience, vulnerability, and consistency.

That’s where “Bonding” experiences shine. They strengthen connections, increase psychological safety, and help teams weather tough conversations or conflicts without falling apart. Plan for monthly team bonding moments.

3. It Improves Communication and Clarity

Poor communication isn’t a personality issue. It's usually a systems issue. And the more your team interacts intentionally, the more efficient and aligned they become.

“Informing” events, like town halls, updates, or strategy rollouts, set the tone for clarity. But don’t confuse telling people something with engaging them. Make it interactive, leave space for questions, and get better at delivering value without overload. Informing meetings occur the most often with weekly, monthly, and quarterly updates.

4. It Boosts Retention and Morale

People don’t stay for ping pong tables. They stay because they’re seen, valued, and committed. When employees feel connected to their team and their own personal development, they’re far less likely to ghost your company the second another offer rolls in.

“Entertaining” events matter here. Laughter, joy, and non-work banter help your people recharge and show up human. Just remember: a party is a perk, not a strategy. These morale boosting activities should occur quarterly.

5. It Reveals Leaders (Before You Need Them)

Great team building surfaces emerging leaders. When you put people into stretch activities like problem solving games, time based challenges, skill building simulations, you’ll quickly see who steps up, who supports, and who surprises you.

This is what makes true Building experiences so powerful. When you host them quarterly, you build a culture of growth that becomes your competitive advantage.

Tie It All Together: The 4 Types of Team Experiences

Here’s how each type of team engagement plays a role:

Type Purpose Frequency

Informing Align and share info Weekly/Monthly/Quarterly

Bonding Deepen relationships, trust Monthly

Entertaining Recharge, boost morale Quarterly

Building Develop skills, spot leaders Quarterly

Don’t confuse them. Don’t skip them. And don’t expect one to do the job of another.

“Team building can be adventurous and enjoyable if you do it with a little pizzazz.” – Forbes

Forbes is right. Team building done well isn’t awkward trust falls and forced fun. It’s strategic. It’s energizing. And yes, it should have a little flair!

But more than anything, it should have intention.

The teams that grow together, stay together. So define the kind of experience you're creating, match it to the outcome you want, and make it part of your culture.

If you want a cohesive workplace, don’t treat team building like a luxury. Treat it like the engine behind culture, retention, and performance.