Key Insights

• Younger employees report much lower engagement than older workers.
• Organisations need better managers, not just better benefits.

A Growing Gap That Organisations Cannot Ignore

Employee engagement remains a challenge across Singapore, but younger employees appear to struggle the most. The Singapore Institute of Directors (SID) and Gallup's Singapore Workplace Report 2026 found that employees under 35 recorded an engagement rate of just 10%, compared with 16% among employees aged 35 and above (SID, 2026).

This gap matters because younger employees represent the future workforce. This gap matters because younger employees represent the future workforce. Organisations that fail to engage them early risk lower productivity today and a weaker talent pipeline in the future. 

It Is Not About Work Ethic

Many people assume younger employees simply care less about work. The report challenges that idea. 

Instead, leaders pointed to rising living costs, slower career progression and a highly competitive labour market as factors placing greater pressure on younger employees (SID, 2026).

SID (2026) also found that many organisations still make little effort to adapt their management approach for younger workers. Rather than asking for more perks, many younger workers simply want managers who provide clear direction and help them grow.

Managers Make The Biggest Difference

Employee engagement depends heavily on day-to-day management.

Gallup's research found that managers account for 70% of the difference in team engagement (Gallup, 2026). Yet many organisations continue promoting strong technical performers into management roles without preparing them to lead people.

As a result, employees often work under managers who know the job well but struggle to coach, support and develop their teams.

Improving employee engagement therefore starts with strengthening managers rather than introducing more workplace perks.

Why Businesses Should Care

Low engagement affects more than employee satisfaction.

Speaking at the launch of the report, Minister of State for Manpower Dinesh Vasu Dash said organisations need to treat human capital as a strategic issue rather than simply an HR function. He added that an engaged workforce supports both long-term economic growth and social cohesion (CNA, 2026).

The Singapore Workplace Report also estimated that disengagement costs Singapore's economy US$73.6 billion each year through lost productivity (SID, 2026). These figures show that employee engagement is no longer just a people issue. It also affects business performance. 

Looking Ahead

As workforce expectations continue to evolve, organisations need managers who know how to develop people rather than simply supervise work.

At CREW, we understand that building a strong workforce starts with hiring the right people and supporting them throughout their careers. Helping employees stay engaged from the beginning creates stronger teams and better business outcomes over the long term.