An employee engagement assessment is implemented in many software development projects to access cognitive engagement and overall employee satisfaction. This paper develops the assessment framework for employee engagement levels in Software Development Projects (SDP) using the multi-grade fuzzy approach. The case study has been conducted and the results found that the employee engagement index of case SDP organization is 7.11, which indicates that the ‘moderately engaged’. An Importance Performance Analysis is used to identify the weaker attributes. This framework will help SDP organization’s managers to measure the employee engagement and give more importance to the weaker attributes to boost their engagement level.