SINGAPORE: A new survey has found that employee engagement in Singapore remains significantly below regional and global levels, with only 14% of workers reporting that they were fully engaged at work last year.
The findings were published in the 2026 Singapore Workplace Report, released by US consulting firm Gallup and the Singapore Institute of Directors (SID). The report highlighted a growing disconnect in the workplace, particularly among younger employees, and warned that the issue is becoming a strategic business concern as economic growth slows.
According to the report, 86% of employees in Singapore were either not engaged or actively disengaged at work in 2025. This lack of engagement was estimated to have resulted in annual productivity losses worth approximately US$73.6 billion, or about S$95 billion.
The report noted that Singapore’s employee engagement rate was lower than both the Southeast Asian average of 25% and the global average of 20%.
The issue was found to be especially pronounced among younger workers. Employees aged below 35 recorded an engagement rate of just 10%, six percentage points lower than the 16% recorded among workers aged 35 and above.
At the same time, younger employees reported substantially higher levels of stress. More than half, or 53%, said they experienced stress every day, compared with 37% of older employees.
Researchers found that many organisations have yet to adapt their workplace practices to meet the expectations and needs of younger generations. Leadership’s efforts in this area received a rating of just 3.25 out of five.
The report also highlighted the growing impact of generative artificial intelligence on the workforce. As AI increasingly takes over routine and basic tasks that were traditionally handled by junior employees, concerns have emerged that future generations of middle-level employees may miss out on foundational skills development and training opportunities.
Management quality was identified as another key factor affecting employee engagement. The report found that 70% of engagement levels are influenced by an employee’s direct supervisor.
However, local leaders gave relatively modest ratings to their organisations’ management performance, scoring it 3.32 out of five. Their assessment of successor development was even lower, at 3.05.
The report said companies often promote employees into management roles without providing sufficient preparation or support. It also found that performance evaluation and reward systems tend to place greater emphasis on individual achievements than on team development and growth.
Employees who were not engaged at work were found to face significantly greater emotional strain. The research showed they were twice as likely to experience daily stress and three times more likely to feel anger on a daily basis compared with their more engaged counterparts.
Against the backdrop of an expected slowdown in Singapore’s GDP growth rate to between 2% and 4% this year, the report warned that employee engagement can no longer be viewed solely as a workplace culture issue, but must be treated as a strategic priority for organisations.
To help strengthen leadership capabilities in managing people and talent, SID will partner with Singapore Management University to launch a new course on strategic human capital management in the fourth quarter of this year.
The programme is intended to equip directors with practical frameworks and tools to manage human resources more effectively at a strategic level, as organisations navigate workforce challenges and changing employee expectations.
