Summary of Key Findings
Singaporean business managers verbally agree that “employee engagement is a strategic priority,” but in practice, they fail to meet this commitment. Common issues include employees working long hours beyond capacity, unmet needs of younger workers, and managers who lack the skills to motivate their teams. As a result, employee engagement in Singapore has remained low for years (14% in 2025), significantly below the global average (20%) and that of its regional neighbors (e.g., 39% in the Philippines). Young employees in particular face low levels of engagement and high levels of stress, with a larger generational gap compared to other countries. Managers play a crucial role in shaping employee engagement; up to 70% of variations in team engagement can be attributed to their direct supervisors. The lack of engagement costs the Singaporean economy an estimated $73.6 billion in productivity losses.
I. Words vs. Actions: The Discrepancy Between What Managers Say and What They Do
Almost all Singaporean managers acknowledge the importance of employee engagement (71% strongly agree that it is a strategic priority, with an average score of 4.71 out of 5, the highest among all surveyed items). However, when it comes to actual implementation, scores plummet:
- Overworked Employees: Only 28% of managers believe their companies can prevent employees from working long hours; 43% are neutral, and 28% oppose this (average score of 2.93, the lowest in the survey).
- Lack of Talent Succession: 50% of managers are neutral about having senior management successors, while 21% oppose this (average score of 3.05).
- Ineffective Team Motivation: No manager strongly agrees that they can motivate their teams effectively; 21% explicitly disagree (average score of 3.32).
- Insufficient Employee Welfare: Measures aimed at improving employee well-being and adapting work practices to younger employees scored below 3.5, indicating that these efforts do not significantly improve the work experience.
This disconnect between words and actions makes managers pessimistic about the future of employee engagement in Singapore (average score of 3.18).
II. Low Engagement Levels Globally, Far Below Neighbors
Singapore’s employee engagement rates are not only low but also lag behind those of other countries and regions:
- Global Comparison: In 2025, Singapore’s rate was 14%, compared to the global average of 20% and 31% in the United States. It falls far short of the 70% recorded among companies with best practices.
- Regional Comparison: Countries such as the Philippines (39%), Thailand (34%), Indonesia (27%), and Malaysia (25%) have higher engagement rates.
- The Gap Between Economy and Engagement: Despite a strong economy, managers recognize a contradiction between economic growth and lack of employee commitment.
Managers attribute these low levels to external factors: small and medium-sized enterprises account for 70% of the workforce, and many family-owned businesses do not adopt modern management methods. The competitive business environment and high costs put significant pressure on employees. Some also suggest that Asians tend to be more conservative in their evaluations compared to Americans.
III. The Challenges Faced by Young Employees
The situation is particularly dire for employees under 35 years old:
- Even Lower Engagement: Only 10% of young employees are highly engaged, compared to 16% among older workers.
- High Stress Levels: 53% of young employees feel stressed daily, compared to 37% of older employees; 39% express worry daily, and they report higher levels of anger and sadness.
- Changing Work Environment: Managers argue that the challenges for young employees include high living costs, mandatory military service for men, and greater job uncertainty. Additionally, their definition of success has shifted from traditional career advancement to a focus on meaning and personal growth. However, companies have made limited efforts to adapt work practices to these new realities (average score of 3.25 for such initiatives).
IV. The Critical Role of Direct Supervisors
Up to 70% of variations in team engagement are due to the direct supervisors employees interact with daily, not CEOs or HR departments. Effective managers provide clear direction, continuous feedback, personalized recognition, and guidance. Examples show that even under heavy workloads, employees can remain engaged if their supervisors meet these basic needs. However, Singaporean managers score poorly on this aspect (average score of 3.32), indicating a lack of these skills.
V. The Economic Cost of Low Engagement
Low employee engagement has significant consequences for both businesses and the economy:
- Business Outcomes: Teams with higher engagement have 78% fewer absences, 21%-51% lower turnover rates, 63% fewer safety incidents, 18% higher sales and production rates, and 23% higher profits.
- Economic Impact: Singapore’s economy is heavily based on services (professional and managerial jobs accounting for two-thirds of employment). Low engagement results in a $73.6 billion loss in productivity in 2025, representing a substantial economic setback.
To improve employee engagement, Singapore must address the disconnect between managers’ rhetoric and actions. They need to not only recognize its importance but also learn how to motivate their teams and meet the needs of younger employees. Otherwise, the economic losses will continue to increase.