Contented workers, we are told, are productive, loyal and collaborative. But in thecurrent environment of talent wars, just how content do they haveto be to stick around rather than casting longing glances at thecompetition?

Research generally looks at the two components of contentment:Satisfaction and happiness. The Stones and Beatles, respectively,explored these states of mind in pop songs. But more important, howare they defined within the context of the workplace? And what isthe difference between a satisfied worker, and a happy one?

Two studies were produced this year that may help address theissue, and guide employers toward the right amount of contentmentamong workers that will foster the desired outcomes: Productivityand loyalty.

SHRM produced itssatisfaction survey results in April. Now comesthe happinessfindings from Universum, a European branding firm.

SHRM's study reported that employee satisfaction has been escalating,and that two key contributors were “respectful treatment of allemployees at all levels,” and “trust between employees and seniormanagement.” These, SHRM said, were more important to moreemployees than were financial and benefits factors when it came tobeing satisfied with one's job.

Universum argues that satisfaction alone doesn't bond employeeand employer. That feeling needs to be elevated to happiness forthe true bond to form.

“The ability to retain experienced talent is no longer a matterof employee satisfaction alone; it is also tied to how employeescompare to their peers in other organizations,” the report said.“This research has found that a negative gap between peers from onecompany to the next is often a signal that less satisfied employeesare ripe for poaching.”

In other words, people talk to people in other organizations,and tune in to whether their peers feel fulfilled, are eager torecommend their employer as top notch, and believe they have careeropportunities ahead.

Universum produced a Happiness Index based on the data gatheredfrom some 250,000 participants which, it says, can help employers“identify the specific drivers of employee satisfaction in theirenvironments and the speed of addressing lapses between theirperformance and that of other companies. When in the negative andcombined with the cost of recruiting and hiring, these factors cancost a company. So the index can provide a roadmap forimprovement.”

The Universum data is far more detailed than SHRM's output. YetSHRM did yield a gem for employers' consideration: The peoplearound you can heavily influence one's decision to stick with a jobor look elsewhere. That's where the trust and respect factors comeinto play.

“Workers have shown an increased preference for understandingtheir role and how it aligns with the success of an organization,”said Evren Esen, director of SHRM's survey programs. “What'simportant to employees now is a collaborative environment thatencourages feedback and interaction among co-workers and betweenemployees and their supervisors.”

These studies indicate that satisfaction with one's internalteam environment, and happiness with one's position compared tothose at other organizations, are critical toretaining top talent — perhaps moresothan wages and benefits. And while the two dooverlap, satisfaction represents a solid foundation for employeeretention, and happiness seals the deal.