From a very good article posted on business2community.com:

Many companies make this mistake, and it is understandable to how it may happen, but it needs to come to a halt.

Employee happiness and engagement are two different things.

As an employee, you could be happy at work, but if you do not receive enough recognition, feedback, or have any opportunities for personal growth, you will never be engaged.

Many companies are using misleading data to define how good their culture is. If they only ask their employees to rate their happiness on a scale from 1-10, they are leaving a lot of missed opportunities on the table.

What about questions regarding training? A person’s relationships with their coworkers? There are so many other things you need to ask about to get a full picture of engagement.

What companies will inevitably find is that the only way to make a person happy is to give them a job that matches well to their strengths, a boss who cares about their development, and a mission that gives them feelings of purpose. 

The definition of employee engagement is the emotional commitment they have towards the company, the company’s values and their mission, and are able at the same time to enhance their own sense of well-being.

If an employee is happy, does it necessarily mean they will use discretionary effort?

According to a report from Deloitte1, 88% of employees do not have passion for their work and never contribute their full potential.

Their report also found that only around 20% of senior management is passionate about what they do, which is an even bigger problem.

Free lunch and beer on Fridays can only take you so far when it comes to engagement.”

The expression is “I couldn’t have said it better myself.”  Unfortunately, I could and I have, but this article comes close to making the right distinctions concerning engagement, happiness, and measurement.