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Companies risk greater turnover and lower productivity without improved teamwork
July 6, 2005
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In today's complex, team-based, and increasingly matrixed organizations, managing roles and relationships between individuals and functions is essential. Indeed, Hay Group research on top teams suggests that alignment around goals and objectives among senior leaders is critical to accomplishing strategic objectives, building productivity, increasing job satisfaction, and advancing a CEO's agenda. In many companies, however, the senior team is not a team at all, but rather a group of functional and business unit heads with little inclination or incentive to cooperate.

Hay Insight employee opinion research confirms that most organizations today are struggling to establish effective collaboration/teamwork and communication across departments. The current research is based on findings from our database of approximately 1.2 million employees in over 400 organizations worldwide.

More specifically, the findings suggest:

  • Only 54 percent of employees feel that their company has an atmosphere that encourages cooperation and the sharing of ideas and resources across the organization. 
  • Less than half of employees surveyed (49 percent) stated that their company had a generally cooperative atmosphere (i.e., various parts of the company working well together). 
  • Only 48 percent of employees rated the teamwork that exists between departments as either "good" or "very good." 
  • Finally, a mere 33 percent of employees responded favorably when asked about the level of communication between departments within their organization.

"A lack of cross-functional teamwork creates lower levels of productivity and growth and makes it much more difficult for organizations to operate efficiently or achieve their strategic objectives," notes Mark Royal, a senior consultant with Hay Insight. "What's more, by making it more difficult for individuals to carry out their responsibilities, employees are frustrated in their current positions and job turnover is much higher."

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