Singapore's workforce engagement has been a longstanding concern, with only 14% of employees reporting active engagement at work, significantly below the Southeast Asia average of 25% and the global average of 20%. This disengagement has substantial economic implications, costing the economy an estimated US$73.6 billion annually in lost productivity.
A notable challenge is the generational divide in engagement levels. Employees under 35 report an engagement rate of just 10%, compared to 16% among those aged 35 and over. Additionally, over half of younger employees experience daily stress, highlighting the need for targeted interventions.
In response to these challenges, some companies have implemented strategies to enhance employee engagement. For instance, Ngee Koon & LFA Studio introduced a common weekly work-from-home day across all departments. This initiative improved cross-departmental collaboration and fostered a sense of belonging among employees.
Experts emphasize that addressing low engagement requires leaders to confront uncomfortable truths about their organizations and be willing to make necessary changes. As noted by Ms. Kanika Singh, regional director at Gallup, "It's the leaders who are willing to face those uncomfortable truths and then commit to improving performance who make the difference."
The Singapore Workplace Report 2026 underscores the importance of building manager capability, aligning organizational culture with employee experiences, and repositioning human resources as a strategic function to address these engagement issues.
By adopting such strategies and fostering a culture of openness and adaptability, organizations can work towards improving employee engagement, thereby enhancing productivity and overall economic performance.