Employee satisfaction used to matter. In fact it still does at most organizations, however, employee satisfaction is a dying metric.

In a new analysis (Making Employee Engagement a Focus) by research firm Ipsos, “there is a very poor correlation between employee satisfaction and bottom line results (see “Shattering the Myths of Customer Loyalty”). Sometimes the connection is there, but just as often, it isn’t.”

Instead, some experts maintain that organizations should shift their focus from satisfaction to employee engagement.

There are of course differing definitions of employee engagement, but in essence, an engaged employee is one that is committed to personal growth and the growth of the organization, and acts accordingly.

The Wikipedia entry on employee engagement:

“Employee engagement is a concept that is generally viewed as managing discretionary effort, that is, when employees have choices, they will act in a way that furthers their organization's interests. Engaged employees feel a strong emotional bond to the organization that employs them. (Robinson) This is associated with people demonstrating a willingness to recommend the organization to others and commit time and effort to help the organization succeed. (Harter) It suggests that people are motivated by intrinsic factors (e.g. personal growth, working to a common purpose, being part of a larger process) rather than simply focusing on extrinsic factors (e.g. pay / reward). (Ryan) The concept has gained popularity as various studies have demonstrated links with productivity.”

An engaged employee is more likely to:

• Understand and support through action a company’s vision and goals
• Recommend the company’s products and services to friends and family
• Work smarter and longer hours without being asked twice
• Enjoy challenges and problem solving
• View their own personal growth as linked to the company’s performance

Here according to Ipsos are 24 Factors for Higher Employee Engagement:

1. Understanding of corporate goals/mission
2. Understanding of job and how it contributes to overall corporate goals
3. Clear communication of goals, expectations, directions
4. Job design
5. Job fit
6. Support and tools
7. Independence & innovation
8. Relationship with boss/direct reports
9. Clear feedback on performance
10. Recognition
11. Fair compensation
12. Learning and development opportunities
13. Opportunities for advancement
14. Leadership practices
15. Confidence in senior leadership
16. Pride in organization/quality of product or service provided
17. Employee input
18. Employee involvement in decision making
19. Work-life balance
20. Workplace culture/morale
21. Co-worker relationships/good team environment (enjoy colleagues)
22. Orientation/on-boarding
23. Safety and well-being
24. Fair HR practices

Note that the intranet is not listed on this list – nor should it. The intranet is a business system that when properly executed should support these factors. However, it can play a major, major role in determining the success of those factors. Particularly factors #1, 2, 3, 6, and 7. This is just one reason why strategic planning is very important for any intranet – the intranet must align with corporate goals and objectives and support key factors such as those for successful employee engagement.

Ipsos goes onto say that “all of these factors are equally important...” Frankly I don’t believe that is true at all. You’d have trouble convincing me that “Employee involvement in decision making” is as equally important as “recognition”.  Nonetheless the factors are important and a process for understanding and prioritizing these factors is helpful.

The Ipsos analysis on employee engagement is very good. It’s important intelligence for anyone connected to employee communications. I agree that employee engagement is more important than employee satisfaction. However, the report all but emphatically states that employee satisfaction is not important. I don’t subscribe to this opinion.

While employee engagement is more important, it is far harder to quantify – if not impossible to precisely measure. Not all companies can afford to measure and track employee engagement (which is essentially what Ipsos is trying to do with this analysis, sell their research services. And there’s nothing wrong with that, but it’s important to keep in mind because employee satisfaction is important).

Employee satisfaction (like user satisfaction) is a good yardstick measurement that is easy to measure and track. Employee satisfaction also provides a solid and quick metric of how the company is doing. If employees are happy, chances are the company is doing well. If not, well the company could still be doing well but it might be an omen of troubled waters ahead. If the company is not doing well, then a satisfaction survey can help pinpoint problem areas.

Even more important is a rolling or tracking employee satisfaction metric – regular (e.g. quarterly) measurement to understand the changing momentum or mood. If two consecutive quarters shows dropping satisfaction, then it is likely there are issues that need to be addressed (or post-bubble letdown). On the flip side, rapid increases in satisfaction might not be sustainable and could create an environment of unreasonable expectations.

To learn more about prioritizing and addressing employee engagement factors and issues please read the entire Ipsos analysis Making Employee Engagement a Focus (registration is free but required).