From Retention to Readiness: Top HR Priorities for Singapore in 2025

ManagementSeptember 01, 2025 09:00

As businesses evolve in 2025, Singapore’s HR landscape is undergoing rapid transformation. The dual pressures of talent retention and AI adoption are redefining how companies attract, develop, and retain talent. 

According to the latest insights, 72% of HR functions in Singapore remain stuck in operational mode, with less than half aligning people metrics to business outcomes. At the same time, Singapore has been ranked second globally for AI readiness—a testament to its strategic investments, regulatory framework, and digital infrastructure. This blog explores how organisations—especially Singapore-based firms and Japanese multinationals—can navigate these priorities to stay ahead in 2025.

1. Shift HR from Operations to Strategic Business Partner

Despite technological advancement, HR in Singapore remains largely tactical. With only 41% of HR practitioners linking people KPIs to business KPIs, there is a critical opportunity for HR to transition into a true strategic partner.

To do this, HR leaders should:

  • Automate routine tasks with HR tech tools.
  • Upskill HR teams in analytics, commercial acumen, and change leadership.
  • Embed people metrics—like retention, engagement, and internal mobility—into business performance dashboards.

2. Prioritise Skills-Based Development Across APAC

The future of work relies heavily on future-focused skills. Surveys across APAC show that 90% of organisations regard skills-based initiatives as highly important, with 61% already implementing programs.

For Singapore, this means:

  • Fostering continuous learning cultures.
  • Creating certification pathways and mobility schemes driven by skill assessments.
  • Accelerating time-to-fill for in-demand roles while enhancing employee engagement and retention.

3. Embrace Singapore’s AI Advantage

Singapore’s global AI readiness ranking underscores its edge in regulatory support, digital infrastructure, and talent development. For HR, this opens the door to:

  • AI-driven candidate screening and predictive attrition modeling.
  • Leveraging government grants to upgrade HRIS with intelligent analytics.
  • Positioning HR as a digital transformation leader, not just a process administrator.

4. Building Workforce Flexibility & ESG Alignment

Singapore is leading APAC in workplace flexibility and ESG expectations. Studies show it also has the highest remote-work adoption, with 23% of employees working fully remotely and 45% spending four days or less in the office.

Companies that embed flexibility and sustainability into talent strategies will:

  • Attract and retain global talent.
  • Strengthen employer branding with ESG-conscious candidates.
  • Build resilience while enhancing employee well-being.

5. APAC Hiring Outlook: Cautious Optimism

Despite economic headwinds, employers remain cautiously optimistic in 2025. Businesses are hiring strategically, focusing on key functions rather than large volumes.

What this means for Singapore:

  • Agile workforce strategies like contingent talent pools are vital.
  • Investment in analytics to forecast demand and manage costs is critical.
  • Companies must prioritise retention and development in high-growth sectors such as technology and financial services.

HR Priorities at a Glance

Frequently Asked Questions (FAQ)

Q1: Why should HR teams in Singapore focus on skills-based initiatives?

Because 90% of APAC organisations see them as critical, and over 60% already have programs in place.

Q2: What makes Singapore a global AI leader for HR tech?

It ranks #2 worldwide in AI readiness, excelling in regulation, digital infrastructure, and talent development.

Q3: How important is workplace flexibility in 2025?

Extremely. Nearly half the workforce now spends four days or fewer in the office, making flexibility a key retention tool.

Q4: How can HR add value amid economic uncertainty?

By using analytics, strengthening retention programs, and focusing on critical growth roles instead of hiring volume.

 

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