Employee engagement is the emotional connection employees have to their work and organization. When people feel engaged, they're more productive, stay longer, and drive better business results, yet recent data shows that employee engagement in the U.S. fell to its lowest level in a decade in 2024. This guide covers the definition, benefits, and proven strategies to build lasting employee engagement.

What is employee engagement?

Employee engagement is the emotional and mental connection employees have to their work, team, and organization. It measures how invested, motivated, and committed people feel about their jobs and company mission.

Why is employee engagement important?

Employee engagement can genuinely benefit everyone at work. Every aspect of your business is affected by employee engagement. Engaged employees tend to feel invested and respected at work, and that can lead to improved morale and lower rates of absenteeism and turnover. Businesses with engaged employees tend to have increased revenue and more loyal customers.

Benefits of employee engagement

Employee engagement delivers measurable benefits across every aspect of your business:

• Stronger company culture: Engaged employees actively shape and maintain cultural values through their work and attitude
• Higher employee morale: Engagement creates positive workplace associations that boost team morale
• Increased profitability & revenue: Engaged employees go above and beyond, driving better business results, with the most engaged business units seeing 23% in profitability over the least engaged.
• Decreased burnout: Engaged workers feel energized rather than overwhelmed by their responsibilities
• Better retention: Happy, engaged employees stay longer, reducing costly turnover; in fact, teams with low engagement experience turnover rates that are 18% to 43% higher than highly engaged teams.
• Higher productivity: Engaged teams work more efficiently and put in extra effort, with organizations that have high employee engagement reporting 22% higher productivity.
• Improved team performance: Engagement has a contagious effect that motivates entire teams
• Greater job satisfaction: Engagement and satisfaction reinforce each other in a positive cycle

Levels of employee engagement

Highly engaged employees

Highly engaged employees are the living embodiment of model employees. They're invested in their own success as well as the company's, and they drive that through their productivity and high performance. These employees consistently demonstrate enthusiasm, leadership, ambition, and a rock-solid work ethic.

• Efficient in producing high-quality work
• Actively seeks opportunities for change and continuous improvement
• Prioritizes their development and growth
• Seeks ways to support their colleagues and team
• Makes tangible contributions to the workplace

Moderately engaged employees

Moderately engaged employees do their jobs and come to work, but that's about all you can expect from them. They're not particularly emotionally connected to their work, and they're more driven by a paycheck than a need to see their company succeed. This approach to work may sound reasonable at first, but can become problematic if they start to become disengaged.

• Makes contributions to their team
• Meets work deadlines
• Adapts to change as necessary

Actively disengaged employees

An actively disengaged employee is more than just unhappy with their job. Their extreme dissatisfaction and disappointment can cause them to unintentionally (and in some cases, intentionally) negatively affect their peers. These employees may actively look for other jobs and tend not to stay for long.

• Dissatisfied in their role or workplace
• Poor communication
• Decline in quality of work
• Lack of participation
• Low morale

How is employee engagement measured?

There are a variety of metrics and methods HR professionals and managers use to measure employee engagement at their companies. Some look at absenteeism and attrition rates to gauge engagement, while others rely on eNPS surveys and other qualitative ways to gather feedback. Many organizations find that a mixture of methods are the best way to measure engagement at work.

10 key drivers of employee engagement

Ten key factors drive employee engagement in the workplace:

• Meaningful work: Employees need to understand how their role impacts the company and team
• Positive culture: Trust, transparency, and recognition create environments where engagement thrives
• Strong leadership: Leaders at all levels must embody company values and support employee growth, especially since research shows that 70% of the variance in a team's engagement is related to management.
• Career development: Clear growth paths and learning opportunities keep employees invested, but there is room for improvement, as only 30% of employees strongly agree that someone at work encourages their development.
• Autonomy: Avoiding micromanagement allows employees to feel trusted and empowered
• Recognition: Regular acknowledgment of good work motivates continued excellence
• Team relationships: Strong workplace relationships increase motivation and connection
• Work-life balance: Respecting personal time and encouraging breaks prevents burnout
• Shared purpose: Employees want to work for companies that align with their values
• Inclusion: Diverse, equitable workplaces make all employees feel valued and motivated

What causes poor employee engagement?

Several factors can damage employee engagement, including inadequate compensation, which is one of the areas where workers express the lowest levels of satisfaction, alongside toxic workplace dynamics and poor company culture. Even the best engagement strategies won't work without addressing these fundamental issues first.

Best practices to improve employee engagement

Implement these proven best practices to boost employee engagement:

• Align on strategy: Help employees understand how their work impacts company goals and bottom-line results
• Use collaboration tools: The right platforms eliminate friction and boost productivity
• Enable two-way communication: Create channels for feedback, questions, and open dialogue at all levels
• Design employee experience: Map and optimize how people experience work and company culture
• Break down silos: Encourage cross-functional collaboration to increase connection and engagement
• Build relationships: Both virtual and in-person team activities help colleagues connect personally

Measure employee engagement

Track engagement through multiple methods for the most accurate picture:

• Annual surveys: Comprehensive questionnaires that establish baselines and identify major themes
• Pulse surveys: Quarterly check-ins to monitor progress on specific initiatives
• 1:1 meetings: Regular manager conversations to catch disengagement early
• Performance reviews: Formal cycles that include engagement and satisfaction discussions

Building your organization's trusted layer of knowledge

Improving employee engagement is a continuous process, not a one-time fix. The most effective strategies—from aligning on company direction to encouraging cross-functional collaboration—all depend on a single foundation: accessible, trustworthy information. When employees can find the answers they need without friction, they feel more competent, connected, and empowered to do their best work.

This is where an AI source of truth becomes critical. By connecting all your company's knowledge and delivering permission-aware answers everywhere work happens, Guru eliminates the information silos that cause disengagement. Our AI Knowledge Agent provides the clarity and context employees need, turning every question into an opportunity for growth and productivity. Ready to see how a trusted layer of truth can transform your employee engagement? Watch a demo to learn more.