We all know team building is important because it brings people together and improves productivity. Engaging in activities that enforce collective effort remind employees that the company runs best when everyone works toward a common goal, rather than assuming a division versus division mindset.

Team building, whether through events, activities, friendly competition, or group training, helps employees form bonds and connections, which lead to increased communication, planning skills, motivation, and collaboration. Fun and motivational activities help teams build skills like planning, problem-solving, and conflict resolution.

And while the work environment is a good place to embrace team culture, holding team-focused activities outside of work helps people connect in a different setting and mindset where the task at hand–rather than the work–is the mental focus. Later, when people are back at work, the implications of these activities on their workplace actions and thoughts, become clear.

Here are eight reasons to build team building into your yearly workplace activity schedule.

1. Teamwork boosts performance

Once a team works together in friendly competition or another, non-work related activity, they come back together at work with a better understanding of each other’s strengths, weaknesses, and interests. This understanding helps them work even better together.

2. Celebration and team spirit bring victory

Working together toward the possibility of victory builds momentum–just ask any sports team. Every celebratory cheer is a step toward motivating employees to bring the quest for victory back to the office.

3. Collaboration fosters innovation and creativity

Creativity is born when people connect with those with whom they are comfortable. Not only do team building events bring people closer together, but also, they are the perfect venue for bringing out people’s creative side. Problem-solving, conflict resolution, and snap decision making all require creative thinking and collaborative idea sharing. Work these into your team building events and watch the creative juices flow.

4. Communication helps people work better together

Everything from conflict to new product development can be solved with great communication. This element of the workplace culture is so important, it is worth focusing on a few activities designed exclusively to improve communication and build trust.

5. Connecting departments makes the whole company stronger

“Team” doesn’t have to–and shouldn’t–be reserved for employees within a single department. Bring employees together from across teams and create activities that depend on getting to know one another. This will surely bring departments closer together, encourage cross-functional collaboration, and help build a culture of collective understanding and goal-setting.

6. Discover leaders to grow the business

Your obvious leaders are, well… obvious. But in a more relaxed environment, you may find leadership where you least expect it. There are also many types of leadership, and in a less formal environment, employees with non-traditional leadership skills may feel more confident showing their stuff and inspiring their peers.

7. Camaraderie improves engagement and morale

Build camaraderie with regularly scheduled team building events, and watch how employees become more enthusiastic about their work and more comfortable approaching each other. Employees feel more encouraged to work fun and ease into their day, which helps them feel refreshed, energized, and more productive.

8. Show your team appreciation

Cultural change comes from the top. Taking the time to bring people together outside of work demonstrates the importance of team building from a leadership perspective. Employees feel appreciated and valued, and morale grows as people understand team building as an investment in their success.