The concept of employee engagement is relatively new, but it is closely linked with the concept of motivation, which is well established. An engaged employee is one who is motivated and committed to achieving results that advance organizational goals and work group objectives in meaningful ways. A basic insight is that strategies that treat employees in a one-size-fits-all way, or that assume all employees are similarly motivated, are apt to be ineffective; a bit more sophistication is needed.

Motivation theories differ according to what is emphasized. While there is general agreement that motivation is about the drive or energy (an inner state) that compels people to act with energy and persistence toward goals, the question is which factors affect this energy. Some theories focus on factors inherent to individuals, such as their basic needs for survival, achievement, appreciation/belonging, or development, as well as their energy level and mental state (e.g., their energy to pursue different tasks).

Other theories examine components relating to the external circumstances in which people find themselves, such as the effects of job goals, salary, work obstructions, supervision, and leadership, which also influence motivation. HRM is involved in shaping many of these, not only through compensation but also through job design and even through selection that addresses factors inherent to individuals.

A key principle of motivation is that people are motivated to pursue their goals and satisfy their needs. A paradox of employee engagement is that while the public sector lacks financial inducements comparable to those available in the private sector, research suggests that money alone is not sufficient to ensure higher levels of engagement and motivation. Rather, managing engagement in the public sector requires using a mix of selection, feedback, achievement, recognition, and growth opportunity.

Of course, money and incentives are important.Surely it is difficult to attract good workers with below-market pay rates, and it is difficult to keep good workers if one cannot offer them advancement opportunities. All personnel, regardless of motivation, also need to be told what the limits are to their behavior. Rewards have their place—including nonfinancial inducements for performance, such as conference travel or new office equipment—but a different and broader approach is also needed.

In recent years, employers have recognized the importance of promoting an adequate level of creativity in jobs that require it. Some of the most creative and successful companies (e.g., 3M) give their workers self-directed hours in which their only task is to do something creative and different. If human resource management is about the development of policies for effective utilization of human resources in organizations, it should be doubly concerned with employee engagement, which is a key to performance—engaged workers are more committed, conscientious, and concerned with achieving outcomes, and they have less turnover, too.

Leaders, managers, and psychologists alike have often pondered how they can better harness and direct people’s “psychic energy” toward work objectives to increase workplace performance. Employees are also concerned about their engagement and motivation, as these often make spending time in the workplace a more attractive experience, by increasing enjoyment, learning, and effectiveness.