What is the difference between satisfied and engaged employees and does it matter?

Contemplating this question, I wonder if I’ve become too absorbed in my own profession!  Research shows that satisfaction and engagement are driven by different factors and drive different behaviours.  So deciphering between them is necessary.

Are your employees engaged or just satisfied?  An employee can be satisfied without being engaged but can’t be engaged without being satisfied.

Satisfaction is more straightforward.  It is largely driven by job characteristics and whether an employee is satisfied with their role.  ‘Hygiene factors’ such as having the resources to do their job are important drivers.

The drivers of engagement are unique to each organisation.  From our experience, an engaged employee at a professional services consultancy looks very different from an engaged employee in a retail chain.  Studies suggest engagement is often driven by leadership, culture and communication.  Interestingly, these factors relate to the company’s ability to motivate and gain commitment from individuals.

Perhaps the most relevant distinction to draw though is that satisfaction doesn’t link to business performance.  Engagement does.  This is not to dismiss the importance of employee satisfaction.   But we must understand the differences between the two states.  This will allow companies to focus on factors that will have the biggest impact on levels of engagement.