Although not all team building activities cost money, delivering a fun, engaging, and effective activity to build strong teams often requires a monetary effort from the company side.
But how much do team building events cost exactly? It is worth noting that there are price ranges for organizations with a big or a limited budget.
Let’s dig deeper into this matter.
Is Investing in Corporate Team Building Activities Worth It?
Yes, investing in team building activities has proven to be a cost-effective option for most companies. Communication and collaboration are part of human nature, and these two factors are directly linked to improved performance and success in work environments.
A corporate team building event boosts employee morale, improves business relationships, helps employees to develop leadership skills, and helps to create strong bonds among work teams.
Over 36% of employees say that “lack of recognition” is one of their main motivators to finally leave a company, according to Forbes.
86% of job seekers say that having a good company culture is one of the factors they take into account when looking for new jobs.
This means that team building activities have a return on investment (ROI) that is valuable to both the company and the employees. According to Employees Benefit News, the average cost of losing an employee is 33% of their annual salary.
Therefore, when a team member leaves, an organization loses time, talent, and money.
Team Building Budget Planning: Things to Consider
There are five different factors that determine how much team building activities cost. Ultimately, it is important to consider that there are activity types that have a lower price of production than others.
Nevertheless, these five team building budget planning factors work for different businesses and companies that want to have a clear idea of team building costs.
1. Number of Participants
The number of participants is one of the most important things to focus on when planning team building activities.
Small groups (from 4 to 25 employees) are easier to handle and cheaper to run than medium-sized or large groups.
Besides, not every team building activity works for all kinds of groups. The first thing that businesses and companies should have in mind before choosing a team building activity is, without a doubt, the total number of employees.
2. Event Type (Virtual, Hybrid, or in-Person)
There are team building activities for everyone: virtual team building activities, outdoor team building activities, and even hybrid activities for teams that run remotely and in-office too.
Depending on the event type, the costs will heavily vary. These are some of the benefits and disadvantages of in-person, hybrid, and virtual team building activities.
Virtual Team Building Activities
- Companies can save time and money (remote activities).
- Virtual team building activities are efficient, low budget, and easy to schedule.
- Although they are a great option, virtual activities are less “personal” and “engaging” than in-person activities.
Hybrid Team Building Events
- Implementing a hybrid team building activity with both in-person and remote employees is a great way to break the ice.
- Sometimes, hybrid activities require companies to pay expensive travel fees.
- The smartest and most cost-effective way to do hybrid events is by doing an annual event, which might not be as effective to all employees.
In-Person Team Building Exercises
- In-person events require investments in materials and time.
- To make events safer, hiring insurance companies might be necessary.
- In-person events are more effective than virtual and hybrid activities, but they might require investments in venue rental.
3. Length of the Activity
The length of the activity depends on its type, nature, and group size.
A team building activity can last up to 5 minutes, 30 minutes, 1 hour, and 2 hours. Consequently, it is important to consider the full or half-day price range based on the duration of the team building activity.
The length of the event will also impact the equipment and materials needed, which are part of the business investment.
4. Goal of the Team Building Event
Team building activities have a main goal. This goal can be motivating employees, creating trust, improved team collaboration, and more.
Some of the most common goals of team building events are the following:
- Celebration.
- Cooperation.
- Diversity Inclusion.
- Entertainment.
- Farewell.
- Networking.
- Learn New Skills.
- Motivation.
- Relaxation.
- Onboarding.
For instance, training ideas for remote employees are usually cheaper to perform than celebration events.
Likewise, it is clear that the materials needed for a “relaxation event” will be different from the equipment required for an event with entertainment goals.
5. Date of the Team Building Activity
The urgency of the event will also have an impact on its final price.
If you want the corporate team building event to take place today, tomorrow, or within one week, then it will cost the company more money than if the event is booked within a month or two.
Team building companies need to perform pre-event planning activities, decide how much equipment the event will need, set up the public liability insurance in case the event calls for it, customization time to adapt corporate events to the goal of the company, and more.
It’s important for every business to plan ahead in order to reduce costs related to the urgency of the event.
Summary: How Much Do Team Building Events Cost?
On average, the budget per person for a team building event ranges from $10 to $100, depending on the event type, equipment needed, group size, goal, and length of the event.
Therefore, if we determine the costs of team building events based on the aforementioned factors, these are the average investment that companies should foresee:
Team Building Costs Based On Group Size
Group size / Price range
10 - from $1,000 to $4,000
20 - from $2,000 to $6,000
50 - from $5,000 to $8,000
80 - from $8,000 to $10,000
100+ - from $10,000 to $15,000
These prices are based on full-day, in-person group activities. Prices could be lower for virtual activities and simpler events.
The key consists of planning your company’s next team building event in advance while also considering all the factors that affect the budget of the activity.
FAQ
Are There Free Team Building Events?
Yes, team building events can be free too, but it depends on the participants number and the goal of the event. For instance, remote groups can jump onto online trivia quizzes together, whereas in-office groups can play a small scavenger hunt inside the workplace. Then again, it depends on the benefits and objectives you are seeking.
