We used the Temkin Employee Engagement Index to analyze the engagement levels of more than 5,000 U.S. employees, and we found that employee engagement has decreased over last year. As highly engaged employees try harder, recommend the company, help others, and take less sick time, this trend should be troubling for companies. However, employee engagement levels vary across different organizations, industries, and individuals. Companies that outperform their peers in financial performance and customer experience enjoy a considerably more engaged work force. Our research also shows that the real estate sector has the most engaged employees of any industry, while public administration has the fewest. Additionally, we found that highly engaged employees tend to be frontline employees, high-income earners, and male. Given the significant value of engaged employees, we recommend that companies improve this area by using our Five I’s of Employee Engagement: Inform, Inspire, Instruct, Involve, and Incent.