The competition for skilled talent in Singapore is fiercer than ever. Companies are grappling with an increasingly dynamic workforce with different demands, making improving retention in the workplace a critical business imperative.
Gone are the days when a competitive salary alone guaranteed loyalty. While compensation remains a vital piece of the puzzle, effective strategies to improve employee retention now demand a holistic, people-centric approach.
What does that mean? In this blog, we'll delve into actionable ways to improve employee retention specifically tailored for the unique landscape of Singapore.
Understand Why Employees Leave in Singapore
Before you can build a fortress around your talent, you need to understand the cracks in the wall. What truly motivates Singaporean professionals to seek greener pastures? While a higher salary can certainly be a lure, recent surveys have found that it is often the non-monetary elements that chip away at morale and push individuals out the door.
Here are some of the common drivers of staff attrition in Singapore:
- Feeling Like They Don’t Belong: According to an article published in Singapore Business Review, over 62% of employees in Singapore would leave their jobs if they did not feel a sense of belonging.
- No Flexible Work Arrangements: According to an article published on Today, 1 in 2 Singaporeans would quit their job if they were asked to be in office more often. Most notably, 68% of Gen-Z workers said they would not work for a business that does not provide sufficiently flexible working hours (68%), or flexible working locations (61%).
- Lack of Growth Opportunities: Singapore's workforce is ambitious and highly educated. If your best people can't envision a clear career trajectory within your organisation, they will actively seek it elsewhere. Another article published by Singapore Business Review reported that 44% of Singaporean workers who have not received enough opportunities to develop in their roles are more inclined to leave.
- Upskilling and Re-skilling: A 2024 employer brand survey by Randstand found that 82% of Singaporeans said that reskilling is important, up 13% from 2023. Despite this, many employees feel that employers do not provide enough support in this area.
The takeaway is clear: fostering a sense of belonging, embracing true flexibility, and committing to comprehensive growth opportunities are key to improving retention in the workplace in Singapore. Addressing these critical non-monetary drivers is key to building an engaged and loyal workforce, and the subsequent strategies to improve employee retention will show you how.
Strategies to Improve Employee Retention: Meaningful Career Growth & Upskilling
If your top performers can't see a future with you, they'll build one somewhere else. This is why investing in career development is one of the most powerful ways to improve staff retention. Employees in Singapore want to see tangible pathways for continuous learning and job advancement.
Singapore offers unique advantages in this area through robust government support for workforce development. Smart companies in Singapore don't just talk about upskilling, they actively leverage programmes like:
- SkillsFuture Enterprise Credit (SFEC): The SFEC provides eligible employers with a generous one-off S$10,000 credit to offset up to 90% of out-of-pocket costs for supported programmes
- Enhanced Training Support for SMEs (ETSS): This scheme allows Small and Medium Enterprises (SMEs) to enjoy higher course fee funding, offering subsidies of up to 90% for WSQ (Workforce Skills Qualifications) courses.
Take advantage of these local initiatives to make investing in your employees' growth financially viable and strategically smart. Besides upskilling programmes, companies in Singapore can also employ the following strategies to improve employee retention:
- Have Defined Progression Paths: Move beyond vague promises. Clearly articulate what's required for advancement across different roles and departments. When employees can visualise their journey within your organisation, their commitment deepens.
- Add Mentorship and Coaching Programmes: Establish structured mentorship programmes that connect newer employees with experienced leaders. This not only transfers institutional knowledge but also signals to employees that their development is a priority.
- Have Career Growth Beyond Promotions: Not everyone aspires to management. Offer opportunities to deepen expertise, lead cross-functional projects, or even explore entirely new functions within the company.
Strategies to Improve Employee Retention: Work Life Flexibility
Traditional 9 to 5 office hours are fast becoming a relic of the past. Today’s Singaporean workforce values autonomy and flexibility. It has become a baseline expectation and one of the key ways to improve staff retention.
Additionally, in April 2024, the Ministry of Manpower (MOM) announced Tripartite Guidelines on Flexible Work Arrangements (FWA), which outline a framework for employers to fairly consider and manage employee requests for FWAs, promoting greater adoption of hybrid work arrangements across Singapore.
Consider these impactful strategies for improving work-life flexibility within your organisation:
- Embrace Truly Flexible Work Models: Besides just allowing remote work, flexibility extends further to how and when work gets done. Explore options like compressed work weeks, staggered hours that accommodate diverse needs (e.g., childcare or eldercare), or even designated "no-meeting" blocks to allow for deep, uninterrupted work.
- Promote and Encourage Leave Utilisation: Ensure your employees are fully aware of and actively encouraged to utilise their statutory leaves, including annual leave, sick leave, and parental leaves (Maternity, Paternity, Childcare Leave).
A culture that actively promotes leave utilisation helps prevent burnout, supports family commitments, and fosters a profound respect for personal time, improving employee retention.
- Invest in Holistic Wellness Initiatives: Recognise that well-being is foundational to sustained productivity and loyalty. Given that The Straits Times reported in February 2025 that four in 10 employees in Singapore report facing high mental health risks, robust mental health support, comprehensive wellness programmes, and readily available resources for stress management are crucial. When employees feel genuinely cared for and supported in their overall well-being, their commitment to the organisation strengthens.
- Leverage Coworking Spaces and Hot-Desking: Offer your employees the ultimate flexibility with access to professional, conducive workspaces beyond the traditional office. Coworking spaces with hot desk spaces extend flexibility to location, allowing employees to choose where and when they work, whether it's closer to home, a client meeting, or simply a change of scenery.
This provides a dedicated, productive environment with amenities like high-speed internet and ergonomic setups, without the distractions of home. By empowering employees to work effectively from wherever is most convenient for them, companies can enhance productivity and improve work-life balance.
Improving Retention in the Workplace Starts with Intentional Choices
Two people in separate meeting rooms in a coworking space
Improving employee retention in Singapore is all about creating a culture where employees feel seen, supported and empowered to thrive. In Singapore’s competitive talent landscape, the businesses that will truly succeed are those that prioritise their people. Once you understand why Singaporean employees might leave, you’ll be able to make more intentional decisions that lead to a more engaged workforce, a stronger company culture, and ultimately, a significant competitive advantage.
Looking to create a workspace that supports your people as much as your operations? The Work Project offers premium coworking and private office solutions across Singapore. Our spaces are flexible, inspiring, and thoughtfully designed to help your team thrive.
