Modern business conditions highlight human resources as the most important factor in the organization and a medium of achieving competitive advantage. Therefore, organizations are trying to find ways to encourage their employees to work harder in the execution of their business tasks while being involved, efficient and enthusiastic in their workplace. To this end, the primary goal of this study is to explore the relationship between employee satisfaction and employee engagement. A high level of employee engagement is no longer something "good to have" but has become a key factor in achieving business excellence. Engaged employees have greater impact, which can ultimately lead to greater competitive advantage for the company. Benefits, which have the character of indirect material compensation, are considered a key tool in stimulating work engagement. An empirical survey conducted on a convenient sample of 101 respondents found that there were statistically significant differences in employee engagement depending on their satisfaction and perceptions of benefits they receive from the employer. Also, satisfaction with benefits was shown at an average level, while employee engagement was at a high level. The relationship between the observed phenomena has proved to be weak and almost negligible, which is attributed to the limitations of the research. The application of benefits becomes a necessity in organizations, therefore, employers must make every effort to communicate benefits in order to achieve mutual satisfaction for both employees and the organization.