Strength of the Culture
You may consider calling this an "optional culture." Engagement will by definition be optional as it is not clear what exactly employees are engaging in. This is also likely the root cause of many performance and talent management issues. Consider spending some time looking more closely at what's working and what's not in terms of your culture and from there take steps to improve.
Your organization's culture is positive but is generally not a motivator for employees. It's something people feel they can opt-in too or is restricted to an "HR program." Most often this level of engagement with the culture means that it cannot be relied on when the going gets tough, but it does not hurt when the sea is calm. To improve the level of engagement in terms of culture, it requires intentional leadership to make it authentic and for it to become a motivator.
Your organization's culture is authentic and a motivator for your employees and leaders that positively impacts engagement. It inspires current employees to recommend your organization to friends who are like-minded and would add value. To maintain a culture of highly engaged people it requires intentional leadership to maintain it because they care for it and believe it is beneficial.
Impact of Leadership
Your leaders are likely contributing to active disengagement of their employees and masking the relative performance issues. While not necessarily to the extent of toxic, you likely never experience these leaders as a mechanism to improve performance. Consider an investment in leadership skills through training and development plans that will lead to a substantial improvement in engagement and performance.
Your leaders are generally liked and create a stable environment of average performance. For the most part they effectively maintain the status quo and average engagement. An investment in leadership skills at all levels is a potential source of competitive advantage.
Within your organization your leaders are the ones who unleash the potential of their employees to the benefit of the organization and motivate them to perform at an above average level. People feel cared for and generally do work they can excel at. For you it will be important to ensure that future leaders are identified and developed.
Contribution of Teams
More than likely teams at this level of engagement are this way because they are siloed and consist of individual contributors. The results produced are defined by an individual’s best efforts. By investing in teams, you will likely see an improvement in the quality of decisions, creativity, agility, and engagement.
You are like most organizations where teams are the norm and people participate as a necessity. People feel most comfortable in intact teams, while cross-functional teams can mean hit-or-miss results. It might be greatly beneficial to improve team skills among employees and leaders which will help motivate and equip employees to engage beyond individual contributions and also increase agility.
For individuals in your organization, the norm is to be more than just an individual contributor. Your employees and leaders are able to quickly form cross-functional teams to tackle problems and people eagerly participate. It likely took time and energy to get to this place, so to maintain this level of engagement you will want to provide training for new employees about how to succeed in this environment and that working as a team is a priority.
Value of the Individual
People are generally contributing the minimum possible level. To improve this area, you will want to focus on nurturing engagement, rather than overcoming disengagement. Through formal and informal formats, you need to ensure individuals feel valued, and are in a role that makes the best use of their strengths. To do this an investment in training, leadership involvement, and peer support may make all the difference to your organization's level of engagement.
Individual contributions are generally managed to standard, though there may be indifference to over-achievement. Consider the leadership training you currently have in place. Are your leaders being trained to identifying strengths in individuals, esteeming others, and empowerment? Improving these areas has the potential to improve engagement results.
Individual contributions are strength-based and employees have the necessary clarity they need to excel in their role. This is a feedback rich environment where the feedback provided is seen as a gift. Celebrations are also the norm as they provide an opportunity to share wins, inspire, and encourage others. Consider investing in the existing strengths of employees through training and development, and also in leaders who may need to be taught how to reinforce strengths in individuals.