We don’t care about employee satisfaction — and neither should you

This probably isn’t the blog post you would expect from the champions of the employee experience — but hear us out. This topic isn’t as straightforward as you might think.

The reality is that while employee satisfaction used to be the benchmark for healthy workplaces, today it’s become an outdated, unhelpful measure that distracts us from metrics that might actually help with meaningful improvements. 

These days, businesses need to look past ‘satisfaction’ and aim for something deeper, more sustainable and more meaningful. While keeping employees satisfied might sound great, it’s often only surface-level. What we should be striving for is employee experience, fulfilment and true engagement. In this post, we’ll explore why employee satisfaction is such a limited concept and discuss what organisations can (and should) focus on to create environments where employees genuinely thrive.

Related: Employee experience vs employee engagement: What’s the difference?

What is employee satisfaction?

Before we go on to explore why employee satisfaction doesn’t work anymore, let’s first discuss what it is. 

Employee satisfaction generally describes the level of contentment employees feel about their jobs and workplace conditions. It’s meant to reflect how well their expectations around compensation, benefits, work environment and overall company culture are met. When employees are satisfied, they typically experience a sense of stability and basic wellbeing in their roles. However, more often than not, satisfaction focuses on surface-level needs — such as fair pay, job security and adequate resources — rather than deeper engagement or motivation. This brings us nearly onto the shortfalls of employee satisfaction.

Why employee satisfaction is no longer enough

The phrase “employee satisfaction” suggests a basic level of contentment. It implies that an employee’s needs have been met to a satisfactory degree. This might include adequate pay, fair benefits and a stable work environment, which are undeniably important. However, meeting these basic needs does not guarantee loyalty, innovation or motivation. Employee satisfaction alone simply lacks the depth needed to drive real engagement.

Satisfied employees might be content, but if they aren’t truly engaged, they’re less likely to be motivated to contribute beyond their job description. Satisfaction alone often leads to stagnation, with employees performing tasks just well enough but lacking the drive to go above and beyond. This isn’t something we recommend striving toward. We recommend going bigger and aiming higher.

Beyond satisfaction: the need for employee experience

Employee experience takes a holistic approach that considers every touchpoint in an employee’s journey (or the employee lifecycle), from onboarding to exit. Unlike satisfaction, which focuses on short-term fulfilment, employee experience creates an environment where employees feel valued, heard and empowered.

According to Deloitte,  84% of business leaders consider employee experience important, but only 9% believe they are “very ready” to address it. This gap shows that companies need to shift their focus from employee satisfaction to the more comprehensive concept of employee experience. Experience is all about creating a workplace that prioritises an employee’s overall growth and wellbeing — one where they feel connected to their role as well as aligned with the organisation’s goals.

Employee experience also includes opportunities for continuous learning and personal, all wrapped up in a supportive culture. For example, companies like Salesforce have made headlines by creating “Ohana” cultures, in which employees feel a sense of belonging and family within the workplace. Companies like this understand that an invested employee — not just a satisfied one — is more likely to contribute meaningfully and remain a valued team player for longer.

Employee engagement as a deeper measure

While employee satisfaction implies contentment, employee engagement measures so much more — employee engagement is almost a measure of emotional investment. Engaged employees care about their work and often take the initiative to improve processes, collaborate and innovate. Engagement is closely tied to productivity, which can ultimately boost a company’s bottom line.

Engaged employees are more likely to bring their best ideas to work, ultimately driving a culture of continuous improvement. Satisfaction alone does not inspire this level of commitment; it’s engagement that truly brings a workplace to life.

What’s more, employee engagement goes beyond financial rewards. Engaged employees often feel a sense of autonomy and purpose in their roles, which is a huge driver and indicator of long-term success, which is why we use autonomy as part our equation to calculate engagement in our employee engagement surveys.

Building a sense of belonging and inclusion

Another reason we recommend shifting away from ‘employee satisfaction’ is because this concept simply doesn’t place enough of a focus on belonging and inclusion. We know that workplaces with diverse and inclusive cultures see greater employee happiness and reduced turnover — so companies that fail to acknowledge or measure this in a meaningful way most likely aren’t fulfilling their potential.

When employees feel that they belong, they experience a level of trust that is difficult to cultivate through satisfaction alone. Organisations that prioritise inclusion and diversity help employees feel safe to express their ideas and be themselves. This psychological safety is a strong predictor of innovation and creativity, two qualities that simply “satisfied” employees may not express.

Employee empowerment: more than employee satisfaction

Empowerment is a key factor in driving long-term commitment and motivation. When employees are given autonomy, decision-making power and responsibility, they feel a sense of ownership over their work. This is fundamentally different from satisfaction, which does not consider how much control employees have over their contributions.

Organisations can boost empowerment by providing flexible work arrangements, supporting skill development and involving employees in meaningful decisions. Empowerment builds resilience, giving employees the tools they need to adapt and perform at their best, even during challenging times.

Benchmark data highlight: 82% of employees say they have the freedom they need to get on with their job, but only 64% feel their opinion is sought on decisions that affect their work.

Time goes by and our understanding of employee motivation and performance evolves. So too should the way we discuss it and measure it. Employee satisfaction was a term that certainly helped in the past and showed a movement in the right direction, but we’ve evolved far past it. Today, we need to consider far more in order to create a workforce filled with dedicated, content, engaged and motivated employees.

To find out how we can help you drive your organisation forward, get in touch for an employee engagement survey. Get in touch today.