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Why is collaboration and team building important for SMEs?

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by Sam Carroll, Marketing & Events Manager at Plus X Innovation

When was the last time you sat down and had a coffee with one of your team members and simply chatted to get to know one another?

It’s a question that, in a lot of workplaces, is simply not considered anymore. With remote and hybrid roles seen as the ‘norm’ after the Covid pandemic, flexible working means that there are less opportunities to connect with our colleagues during the work week than ever before.

With that in mind, collaboration – and creating the conditions where collaboration can thrive – should be a priority for businesses, no matter how big or small. It is only through coming together that teams can thrive, innovate, and spark creativity to solve the challenges facing their business.

Why is collaboration so important for SMEs?

1. Collaboration helps to overcome SME-specific challenges

SMEs face an overwhelming range of problems on a daily basis, like resource constraints and scaling. But these challenges can be overcome and faced head on with a well-bonded, collaborative team. A study published by the Harvard Business Review revealed that collaborative problem solving achieves markedly better outcomes. This is based on the idea that the more cognitively diverse the group, the wider and more diverse the perspective on the problem – which can lead to a better result (as long as they have psychological safety).

When facing very specific problems on a daily basis as a SME, listening to others’ voices and being able to work together to solve problems can really make the difference and may just be the key to success as a small team.

2. Collaborating can have a positive impact on employee retention

Collaboration can come in many forms. Team building events, when done properly, are far from the groan-inducing stereotype.

In fact, team building events can be responsible for employees choosing to stay at a company – a vital lifeline for small businesses. They can be the foundation for a strong performance boost for a business, with team days contributing to increased productivity, employee satisfaction and sense of belonging. This can in turn directly impact employee retention rates, with a study by Gusto showing that employees who feel they belong at work were 54% more likely to stay in their jobs. This sense of connection isn’t just a “nice-to-have” — it’s essential for keeping teams engaged and reducing turnover.

Organising regular in-person events is also crucial for attracting talent, especially in today’s dispersed work culture. A landmark study by Glassdoor found that 77% of workers would ‘consider a company’s culture’ before seeking a job there, underlining the need for businesses to invest in team-building initiatives to foster a positive, engaging culture that attracts and retains top talent.

3. Collaboration in person creates stronger connections

Face-to-face interaction can be greatly underestimated when it comes to innovation and collaboration. In-person interactions are critical for creating a more inclusive, relaxed environment where team members feel engaged, valued, and supported. Stronger professional relationships stem from such in-person communication and socialisation, which Harvard Business Review found improved communication by over 50%.

When employees are given the space to connect and collaborate, their sense of belonging and commitment to the business grows, and the ability to innovate goes through the roof.

But despite the long list of benefits that meeting in person brings, according to Gitlab, less than 33% of remote teams invest in team building activities. Which is why in order to stay ahead, SMEs must take advantage of team building events.

Team-building events, especially face-to-face, are an essential component of building stronger, more cohesive teams that are better at communicating. Whether focused on social interaction or skill development, team building activities significantly improve overall team connection, helping teams tackle challenges more effectively.

Collaboration via team-building activities

Collaboration as a team can be incredibly important for SMEs. Collaboration can help them to overcome SME-specific challenges by bringing multiple voices and perspectives to the table, it can have a positive impact on employee retention and attraction, and it can create stronger connections within a team.

So what does a successful team-building day look like?

While there are many potential ideas for team-building activities, the success of your event largely depends on choosing the right venue. The setting plays a crucial role in promoting collaboration and creativity. An inspiring space brings people together to share ideas plus, discuss strategies, and spark the kind of innovation that drives real business growth.

At Plus X Innovation, we offer the perfect venue for team away days. Our innovation hubs, complete with event spaces, meeting rooms, and a rooftop terrace with panoramic views, provide a dynamic environment designed to foster connection and creativity.

Win a free event for your team

Until October 14th, we’re offering an exciting opportunity for SMEs to win an all-inclusive team event, worth £1000, at one of our Plus X Innovation hubs. Whether you choose our vibrant event space or take advantage of the rooftop terrace, this is your chance to bring your team together in an inspiring setting.

All entrants will receive a complimentary day pass to their local Plus X Innovation hub, even if they don’t win. This means everyone has the opportunity to experience our space designed to drive creativity and growth.

At Plus X Innovation we believe that innovation comes from collaboration. We create collaborative workspaces, bringing together state-of-the-art equipment and facilities, game-changing innovation programmes, and vibrant communities to help drive positive impact and business growth.

Don’t miss this out. Enter the competition now: https://eu1.hubs.ly/H0cygxr0

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