A novel method is to carry out a mini-survey as a part of on -line Annual Appraisal of employees. This approach is simple, more effective & ensures almost 100% participation. 'EmpXtrack' provides such a tool as a part of their strategic HR solutions. You may do web search for 'EmpXtrack' & speak to the concerned people for deeper insights.
If you read the book "Break all the Rules" you will get a very good insight on how to gauge employee engagement there is also some matter that deals with employee satisfaction. However, what most companies forget is that "employee engagement" is actually more important than employee satisfaction. Employee satisfaction is more related to the office atmosphere, the HR policies, Facilities provided to cool-off. In many cases companies think that the compensation is the most important factor for employee satisfaction, yes it is true to a very great extent, more so today than a few years back, but do you want satisfied employees ot fully engaged employees. Remember the level of "Satisfactory" in the ratings list. Does this level of employee get the best increment or is the "Excellent" employee. If that be the case organizations must gauge the level of Employee 'Engagement as well as the level as Satisfaction".
Work out on questionnaire that will serve the purpose of your organisation as the definition of satisfaction is different at different culture.