The purpose of the paper was to gain an understanding about Employee Engagement and Role of Effective Leadership. It has been found that for an organisation to succeed in today's work environment, leaders understands what it takes to create a work culture that enables the full engagement of employees. Leaders create such a culture by focusing on the five key elements namely (a) Creating a culture of opportunity, (b) Creating a culture of personal accountability, (c) Creating a culture of validation, (d) Creating a culture of inclusion, (d) Creating a culture of community so that each individual employee feels the pride and takes ownership in the organisation and themselves.