Human resources leaders commonly assume that for a company to stand out as a great place to work, it must deliver competitive perks—everything from skills training to pet insurance to foosball. New research finds that this view is outdated: Engagement and retention don’t correlate with benefits awards. Employees have begun looking beyond material offerings and assessing how they feel about the company they work for—and that requires a different approach.

A version of this article appeared in the March–April 2022 issue of Harvard Business Review.