Engaged employees believe that their work is meaningful, believe that they are appreciated and backed by their supervisors and that they have been entrusted with the success of their company. Employee engagement has been a considered part of management theory since the 1990s and became widely adopted in the 2000s.

When employees are engaged, discretionary effort goes up. Employees want to go above and beyond the basic requirements of their job. When leaders and managers channel that energy and effort in the right direction, employee engagement impacts a host of business outcomes.