Employee engagement refers to an employee's commitment and involvement with their organization and its values. An engaged employee is aware of the business context and works with colleagues to improve performance for the benefit of the organization. Most organizations have about 15% of actively disengaged employees, 55% of not engaged employees, and 30% of actively engaged employees. The document discusses different aspects that influence engagement, advantages of engaged employees, and various approaches organizations can take to improve engagement, such as effective communication, reward schemes, building organizational culture and teamwork, and leadership development activities.