It’s something all HR leaders have experienced: an employee says they like their job, they get along with their colleagues, and they’re satisfied with the work they’re doing. And yet, they resign.

The reason is simple: merely liking your job isn’t the same as being actively engaged with the work you’re doing.  

Understanding the importance of true engagement is key to retaining talented employees. That’s why we sat down with Rahat Rishi, a Senior People Scientist at Winningtemp, to explain how these two concepts differ — and how you can use that knowledge to boost retention.

Engagement vs. satisfaction

“Job satisfaction tells you if people are content,” says Rahat. “They enjoy their tasks, they get along with their team, and things feel stable. But that’s not the same as being engaged. And if employees don’t feel engaged, they will eventually leave.”

Engagement, on the other hand, is about energy, purpose, and connection. “It’s the difference between ‘I have a good job’ and ‘I’m making a difference here,’” Rahat explains.

The challenge for organizations is that engagement is harder to build than satisfaction. According to Gallup, only 23% of employees are engaged at work today. So how can you recognize and support genuine engagement?  

What does true engagement look like?

True engagement goes beyond simple job satisfaction. Employees who are genuinely engaged see purpose in what they do, know how their work fits into the bigger picture, and feel trusted to make decisions.  

You can see it in the ways people offer ideas, step in to help colleagues, or take on new projects without being prompted.  

Building that kind of commitment means looking past perks like free snacks and instead offering opportunities for growth, connecting roles to the company’s goals, and creating an environment where every voice counts.

Why happiness doesn’t equal loyalty

Research shows that employees who lack engagement are 75% more likely to leave, even if they like their work.

Happiness in a role doesn’t guarantee loyalty. People often move on because they don’t see a path forward or struggle to see how their work matters in the bigger picture.

“They may enjoy the tasks,” Rahat says, “but if they don’t feel recognized, trusted, or supported, they’ll look for a place that gives them that connection.”

Many organizations try to boost retention with perks or salary increases, but Rahat warns that these are short-term fixes.

“Engagement isn’t about free lunches or ping-pong tables. It’s about whether people feel seen, supported, and connected to something bigger.”

Three strategies to strengthen engagement

Rahat highlights three approaches organizations can use to bridge the gap between satisfaction and engagement:

1. Continuous listening. “Annual surveys don’t cut it anymore. Leaders need regular check-ins and real-time feedback channels to respond quickly to concerns.”
   

2. Recognition. Timely and consistent appreciation, both from managers and peers, helps employees feel valued. “It’s not about big bonuses. It’s about frequent, meaningful recognition.”
   

3. Purpose-driven alignment. Connecting daily tasks to broader organizational goals gives employees a reason to go the extra mile. “When people see the impact of their work, they’re much more likely to stay committed.”

Turning engagement into staying power

Engagement is important because it drives retention, strengthens performance, and improves wellbeing. And the business impact is clear: companies with highly engaged teams see 23% greater profitability and 43% lower turnover.

When companies focus on engagement, they don’t just reduce turnover: they build workplaces where people actually want to develop their skills and do their best work.

For more strategies on how to keep your best people, download our full guide ‘The real cost of disengaged teams — and how to fix it.’