Featured Research: The State of Employee Teams in 2018
Adopting new paradigms and practices to boost organizational performance
Posted on 10-12-2018, Read Time: - Min
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As organizations become more networked and team-oriented, HR has a vital role in team development. The same dynamics that drive individual engagement and performance also apply to teams. HR’s role is to foster those dynamics and prepare people to work together toward a shared team purpose. But, how well are organizations performing in this area? To find out, HR.com collaborated with TTI Success Insights to conduct a study to learn the degree of success in terms of teamwork and management.
Key findings:
- Organizations rely heavily on teams to get work done.
- In most organizations, the majority of employees work in teams.
- Respondents reported an average team size of four to six members over twice as often as any other group size.
- About 79% of respondents said their organizations use project teams, and 66% use workgroups. Thirty-one percent have self-directed teams.
- Teams face three primary challenges - accountability (49%), difficulty in making decisions (45%) and a lack of participation (44%).
- Good communication and clear goals are widely viewed as critical to team effectiveness.
- Only a quarter of respondents said their organizations appraise performance at the team level.
- Only 16% rated their teams as excellent.
Employee Teams Today and Tomorrow
Team-driven organizations have been around for years, especially in the technology sector. Fluid groups of teams are traditionally used for enterprise software development and implementation. These days, more organizations are adopting similar structures. The agile methodology used in the technology sector today is finding its way into the mainstream of business operations.
How Widely Used Are Teams Today?
In today’s business environment, there is often little time for delay in making and implementing decisions. In many organizations, teams are empowered to make critical decisions at the point of need, giving the people closest to a problem the freedom to act. This helps explain why teams have become so prevalent. We found that a majority of participants (74%) said their
organizations are highly reliant on teams to get work done.
organizations are highly reliant on teams to get work done.
How Are Teams Deployed and Managed Today?
Respondents reported an average team size of four to six members over twice as often (44%) as any other group size. The proper number of team members will, however, depend on the team’s function. A team has the right size if it includes the right abilities, has sufficient bandwidth, can adapt quickly to change, has diverse viewpoints, and gives a chance for each member to be heard in team discussions.
About four-fifths of respondents reported that they use project teams. Much of the work in organizations today is project work, and people may be working on several projects at once. This is driving the need for more fluid, less hierarchical organizational structures.
Sixty-six percent use workgroups, so there is a substantial overlap in using both teams and workgroups.
Nearly a third of organizations use self-directed teams. A team can be self-directed if given the authority to make decisions and the freedom to act.
About four-fifths of respondents reported that they use project teams. Much of the work in organizations today is project work, and people may be working on several projects at once. This is driving the need for more fluid, less hierarchical organizational structures.
Sixty-six percent use workgroups, so there is a substantial overlap in using both teams and workgroups.
Nearly a third of organizations use self-directed teams. A team can be self-directed if given the authority to make decisions and the freedom to act.
What Drives Team Effectiveness?
Good communication (78%) and clear goals (72%) are viewed as the most essential characteristics of teams, followed by adaptability to change (42%) and sense of purpose (39%). This helps explain why organizations are most likely to focus their team-development efforts on communication, collaboration and goal setting.
We should note, however, that relatively few organizations train and develop their teams in the areas of decision-making and consensus building. That seems like a missed opportunity given the fact that “difficulty making decisions” is among the top challenges facing teams.
Survey Question: What are the biggest challenges associated with teams? (top 3)
We should note, however, that relatively few organizations train and develop their teams in the areas of decision-making and consensus building. That seems like a missed opportunity given the fact that “difficulty making decisions” is among the top challenges facing teams.
Survey Question: What are the biggest challenges associated with teams? (top 3)
How Do Organizations Measure Team Performance?
Despite the overwhelming reliance on teams in most organizations, relatively few organizations (34%) actually appraise performance at the team level. Why? Probably because many employers aren’t sure what to base those appraisals on.
Among organizations that do appraise performance at the team level, almost three-quarters (72%) base it on productivity. Although this makes sense, it can also present problems. When it comes to knowledge work, for example, productivity can be hard to measure.
Nearly two-thirds (64%) appraise teams based on whether or not the team meets its goals. Fewer based such appraisals on the ability of teams members to work well together (58%), the quality of the product produced (54%), or customer evaluations (45%).
Among organizations that do appraise performance at the team level, almost three-quarters (72%) base it on productivity. Although this makes sense, it can also present problems. When it comes to knowledge work, for example, productivity can be hard to measure.
Nearly two-thirds (64%) appraise teams based on whether or not the team meets its goals. Fewer based such appraisals on the ability of teams members to work well together (58%), the quality of the product produced (54%), or customer evaluations (45%).
What Practices Are Linked to Successful Teams?
Organizations with high-performing teams (HPTs) differ from those with lower-performing teams (LPTs) in several key areas, including team appraisals.
- HPTs are are over two times more likely to appraise team performance compared LPTs.
- HPTs are also much more likely to use metrics that evaluate the quality of the product produced, the ability of teams to work together, and customer evaluations.
- HPTs develop all team-related skills to a much greater degree than do LPTs.
- Respondents from HPTs are considerably more likely than LPTs to identify “collaborative” as one of the key characteristics of a good team leader.
- HPTs are more likely than LPTs to have teams with an average size of four to six people.
What Is the Future of Teams?
Forty-six percent of respondent expect teams to become more virtual, a conclusion that is true for both high and lower performers. One reason may be that employers expect them to become more geographically dispersed (35%). Thirty-eight percent expect teams to become more diverse and more reliant on different kinds of leaders.
Survey Question: From the list below, choose three ways in which teams will change over the next several years in your organization. (select up to three)
This study shows that organizations vary in terms of how much they use teams, which kinds of team they leverage, how they appraise their teams, and their degree of success in terms of team management. To learn more and to take home key tactical and strategic takeaways, we invite you to download and read the complete research report here:
Survey Question: From the list below, choose three ways in which teams will change over the next several years in your organization. (select up to three)
This study shows that organizations vary in terms of how much they use teams, which kinds of team they leverage, how they appraise their teams, and their degree of success in terms of team management. To learn more and to take home key tactical and strategic takeaways, we invite you to download and read the complete research report here:
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