A recent article by Gallup made the following statement:
"Actively disengaged employees erode an organization's bottom line while breaking the spirits of colleagues in the process. Within the U.S. workforce, Gallup estimates this cost to be more than $300 billion in lost productivity alone."
Employee engagement is a hot topic these days and many people are quick to recommend expensive and complicated strategies. A simple one to implement and that's proven cost effective is: mentoring. People are engaged by someone taking an active interest in who they are and where they want to go in their career. Mentoring creates the kind of relationship that fosters closeness between the partners AND loyalty to the organization by virtue of the value they receive from mentoring. That value is not limited to mentorees but also to mentors.
So, yes, look at engaging your employees in every way possible but you don't need to invest tons of money to achieve results. Just provide mentors!