We all know when team dynamics are poor. We sit in meetings clenching our teeth in frustration. We vent to our families and friends but we remain silent at work. We don’t air our concerns for fear of the repercussions, or for fear of making an already stressful situation worse. We justify and excuse the situation because no one else is speaking up. We believe it is the way it has to be. Invariably, the inability to “talk it out” causes the situation to worsen and relationships become damaged to the point there is little hope for reconciliation, at which point one or both parties leave the organisation. You’ve seen it happen – perhaps in your own career.
Contrast that with a working environment that is completely open: no barriers, no hiding and no excuses. Team members can simply raise issues and talk them through. Teams with healthy team dynamics are more engaged, connected, collaborative and perform better.
It boils down to this: Choosing not to invest in your team, or ignoring poor team dynamics, will end up costing you and the business more than just recruiter fees. Building healthy team dynamics is an absolute must for any leader that wants their team to thrive.
But it’s also become a buzzword overused and misused in the workplace. That can make it tricky to understand what team dynamics are and how you measure it.
So, what’s the true worth of healthy team dynamics?
At the most fundamental level, healthy team dynamics is when team members are connected and in-sync with their work, each other, and the organisation. This occurs when everyone trusts one another, holds one another accountable in a respectful manner and is willing to work collectively. Sounds easy, right? But the perfect recipe for healthy team dynamics is more complex.
A few factors go into building a highly engaged team, with research showing management and leadership, physical work environment, professional growth and development opportunities, clear roles and responsibilities, and relationships with colleagues all have an impact – amongst others.
When your team is engaged and working well together, it’s like rocket fuel for your results. In my experience, highly engaged teams deliver stronger customer or client service, recruiting is easier, turnover rates are lower, and higher profit margins result. You are also likley to have a resilient team on your hands when the times are tough.
As a bonus, on a personal level, work is much more enjoyable because you’re working with colleagues that are passionate about — and involved in — what you are doing.
So what’s the cost of poor team dynamics?
I think we all agree that team dynamics matter, but it’s tricky to put a tangible value on something that seems so immeasurable. Because of this, I feel many leaders write-off team development strategies as a ‘nice to have’ that takes too much time away from ‘important’ things. Negative emotions due to poor team dynamics are destructive. They prompt people to react, interfere with rational thinking and quickly burn down people’s energy reserves. Like energy itself, emotions are contagious, and the more intense they are, the more likely they are to influence others.
All this shows up at the bottom line. How people feel within the team profoundly influences how they perform. So poor team dynamics has a very real impact, in areas such as…
1. High staff turnover
Employees will always come and go in any business, but when team members feel disengaged due to poor behaviours being tolerated in the team, they’ll show it by jumping ship at the first opportunity— and every lost employee can put a massive strain on your bottom line. High turnover costs businesses a lot of money on mostly avoidable recruitment and training costs. Think about where that money could be better spent!
2. Increased time off
Every day of leave costs a business upwards of $500. There are lots of reasons behind why people take leave, but when team dynamics are poor, team members are more likely to take time off (rather than go into the office) when they feel stressed out and overwhelmed. While the occasional sick day happens, if you notice a trend, there might be a deeper issue.
3. Low productivity
An engaged team drives innovation, growth and revenue. Team members come up with new ideas, drive collaboration and bring in new clients.
But when your team is disinterested and disengaged due to people issues, productivity screeches to a halt. People stop giving discretionary effort in favour of engaging in energy draining gossip and innuendo. And what’s the cost of poor productivity? It’s more about what you are missing out on because engaged and productive employees generate 2.5x more revenue for their business!
How to turn the dial up on team dynamics
With all these numbers, there’s no doubt it’s crucial to invest in keeping your team dynamics healthy. But I get it — it’s often easier said than done.
Here’s the bottom line: when it comes to culture and team dynamics, there’s no one-size-fits-all answer. You need to define what ‘great team dynamics’ looks like for your team and what it really means for you and the business.
Define it, then spend on it — but spend smart. It’s not as simple as putting on a social event. Take time to speak to your team, gather feedback, and tackle behavioural issues head-on if you can. It could be something like gaining agreement on the expected behaviours within the team.
Remember also to focus on relationships and connection in the workplace: team connection builds bonds, and keeps employees happy! And if you need a hand, I’m here to help you. I can facilitate a workshop with your team to gain insights into how the team is operating, identify any behavioural issues, and celebrate the good stuff whilst we are at it.
