Ask any benefits consultant and he/she will tell you that employee benefits are a key driver of employee engagement. Well, they aren’t wrong, but they aren’t exactly right either.

Managers see benefits as a key component in attracting and retaining employees. While this is true, benefits actually have a very small impact on day-to-day commitment or engagement that employees have with the organization. Why the disconnect?

If you are talking about recruiting and retaining professionals, they most likely already have benefits and will most likely have them at their next job. Benefits are not a motivating factor. They are just one part of their value proposition with the company along with pay and perks. Now if you are talking about recruiting workers who don’t have benefits now, then giving them an offer that includes a good benefits package will cause them to jump at the offer.

So, benefits certainly do have some attraction value, but do they have true motivational value? Ask those same benefits consultants if they worked hard this last week because of their medical insurance and they will laugh and say no. Unless they had a doctor’s appointment or received an insurance EOB they didn’t even think about their medical insurance or any of their other benefits. So, how can it be a driver of engagement? It isn’t. While it is a necessary condition in many cases, it is not why people work hard and remain committed to their organizations.

Now, don’t take away employees’ benefits and expect them to continue working quietly, they won’t. HR managers need to continue providing basic employee benefits and line managers need to continue motivating their employees. Benefits are not a cure all. HR managers need to work more closely with line managers to identify and develop strategies to develop and retain key talent.