Why Teamwork Matters: Industry Data

Picture this: 

In a vibrant office in São Paulo, a marketing team is working like clockwork on the launch of a new campaign. In this context, everyone knows their role, communicates effectively and supports each other. 

Now, compare that image to one of a tech startup in New York. In this case, poor communication and isolated efforts are the norm, leading to missed deadlines and frustrated employees.

These two scenarios highlight how important and crucial teamwork is, not only to the success of a company, but also to employee satisfaction.

Sao Paulo & New York

A definition of teamwork

Teamwork is more than a group effort to achieve a goal or complete a task seen as an isolated event. It’s about excelling together, creating ties that facilitate communication, making the process pleasant and highly satisfactory for all those directly involved in the process.

In Latin America, teamwork often thrives on personal communication and empathy, fostering a warm and supportive atmosphere where colleagues build strong interpersonal relationships and trust. This environment can foster open dialogue, collaboration, and a sense of camaraderie that can improve team cohesion.

On the other hand, in the US, teamwork generally revolves around structured processes and clear roles, driving efficiency and productivity. Here, defined responsibilities and systematic workflows are emphasized, promoting accountability and goal-oriented performance in a professional environment. Both approaches have their unique strengths and can have a big impact the dynamics and success of a team.

The hard data about teamwork

Research consistently shows that effective teamwork can lead to great benefits for both companies and employees. Let’s look at what thsoe studies say:

  • Groups of three to five people working together consistently outperform the best individuals, highlighting the immense power of collective effort (APA).
  • Engaged team members result in 17% higher productivity and 23% higher profitability.
  • Engaged team members help significantly reduce absenteeism by 78% and employee turnover by 21% (Gallup).
  • When workers contribute to a project collaboratively:
    • 73% report doing a better job,
    • 60% feel more innovative,
    • 56% experience greater job satisfaction, and
    • 15% can complete tasks faster. (Deloitte)
  • 86% of business owners and staff report that workplace problems often arise from inadequate communication tools (St. John Fisher College).
  • 97% of employees and executives believe that lack of alignment within a team significantly impacts project results (Bit.ai).
  • Diverse teams improve creativity and overall performance by up to 35% (McKinsey).
  • Happy employees are up to 20% more productive than their counterparts who are unhappy with the team or what they do (Social Market Foundation).

In Latin America, teamwork really shines when it’s based on personal relationships and emotional intelligence.

Teamwork in Latin America

In Latin America, teamwork really shines when it’s based on personal relationships and emotional intelligence. Companies that encourage collaboration and team building see some surprising benefits: higher productivity and more innovation. This is especially true in places like Argentina, Chile, Colombia, Costa Rica, Panama, and Uruguay (IDB). 

As an example, let’s look at some success stories of Latin American companies. These stories showcase leaders who skillfully balance soft and hard skills, sharpen their management capabilities, and promote alignment and execution (McKinsey). As McKinsey says, “Successful leaders are experts at fostering teamwork and collaboration” and emphasize that “investing in developing soft skills is as important as technical competencies.”

The Inter-American Development Bank also emphasizes that companies focused on team building and collaboration are better equipped to adapt to market changes and drive innovation. This holistic approach helps leaders manage the complexities of diverse teams while navigating the region’s unique cultural landscape.

In Latin America, where cultural nuances play an important role in business, this strategy is particularly beneficial. By adopting these strategies, leaders not only improve the performance of their teams, but also create an inclusive environment that respects and leverages cultural diversity. This drive for better management practices and team cohesion ultimately leads to sustained success and provides a competitive advantage on the global stage.

However, teamwork in Latin America has particular challenges. The region’s tendency toward centralization and strict hierarchies can limit team creativity and input (CEPAL). These dynamics can sometimes create a less vibrant work environment. But the region’s strong emphasis on empathy and personal communication can really energize team dynamics. By fostering strong interpersonal relationships, teams become more cohesive and motivated, leading to better results. Navigating these hierarchical structures effectively can be transformative, fostering a more inclusive and innovative workplace culture.

Teamwork for remote and independent workers

Remote workers, defined as those who carry out their work activities outside the office through digital means, face unique challenges. Such is the case of having to build or create a teamwork environment devoid of the typical kinds of personal interaction that only occurs when you’re sharing space with someone. 

All this means that you need to stand out on digital platforms, presenting yourself professionally to bosses, co-workers and clients. In this context, mastering tools like Slack, Zoom and Trello is a paradigm shift that defines new rules of the game to achieve success. Thus, to close the gap left by the lack of physical presence, it is crucial to develop strong communication skills.

Research from TeamStage shows that remote workers and freelancers who excel at teamwork often land higher-paying jobs and experience greater job satisfaction. This shows that, despite the challenges, effective virtual teamwork can lead to big career advances.

Due to the dynamic nature of their work, freelancers often need sharper teamwork skills than full-time employees. Quickly integrating into diverse teams and adapting to various collaboration styles and technologies is part of your daily life. This is why flexibility and a keen awareness of team dynamics are vital for freelancers to contribute effectively without disrupting established personal and team workflows they interact with.

The most successful freelancers strike a perfect balance between independent work and collaborative efforts. Not only do they meet client expectations, but they also forge strong professional relationships. By honing robust teamwork skills, freelancers can improve their reputation, secure more projects, and achieve greater success in their career.

Conclusion

Whether you work remotely, in a traditional office, or as a freelancer, the fundamental principles of good teamwork are constant and always generate good results.

The success of a project, business, or company often depends on how well its teams work together. When teamwork flows, productivity and innovation skyrocket while employee satisfaction increases.

Team dynamics can make or break a project. Strong communication, aligned goals, and mutual support lead to remarkable results. On the other hand, poor teamwork dynamics can result in missed deadlines, emotional burnout, and high staff turnover rates. That’s why, for any organization aiming for long-term success, fostering a culture of collaboration is crucial.

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by Alicia Hall & Milthon Gómez

Alicia Hall and Milthon Gómez are the cofounders of Kressca. Between them, they have over 40 years of business and consulting experience in the United States and Latin America. They are avowed lifelong learners who want to help others take control of their careers and their lives. They love puzzles, strategy, reading, kung-fu movies, and exploring the world.

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