Why Paying More Is No Longer Enough to Retain Talent in Singapore

ManagementFebruary 24, 2026 09:00

Singapore HR leaders discussing employee retention strategies, hybrid work, and engagement challenges in 2026.

This article is written in English for readers in Singapore. Chinese and Japanese translations are available on our website. 

Introduction: Retention Risks Are Growing, Even When People Stay

Many Singapore employers assume that if employees are not resigning, retention is under control.

In 2026, workforce data suggests otherwise.

While headline attrition may appear stable in some sectors, underlying retention risk has increased. Employees are staying put physically, but disengaging mentally. They are reassessing their roles, comparing options, and quietly questioning whether their current jobs are still worth staying in.

Insights from the Beyond the Pay Cheque: Singapore Employee Sentiment Study 2026 show that retention challenges now begin long before resignation letters are submitted. Salary increments alone are no longer sufficient to keep employees committed, especially when day-to-day work experience falls short.

Salary Still Matters, But It No Longer Guarantees Loyalty

Compensation remains an important anchor in employment decisions. However, the study shows that its power as a retention tool has limits.

  • 69.1% of Singapore employees say they are open to pay-related trade-offs
  • Most respondents indicate that any reduction must be modest and justified
  • The majority are unwilling to accept pay cuts beyond 10%, even when other benefits improve

These findings highlight a shift in mindset. Employees are not driven purely by maximising income. Instead, they are weighing salary against sustainability, workload, and quality of management.

When salary adjustments do not meaningfully improve daily work experience, their impact on retention diminishes quickly.

The Hidden Retention Risk: Silent Job Browsers

One of the most critical findings from the study is the rise of the silent job browser.

  • 71.8% of respondents are engaged in some form of job-search behaviour
  • This includes browsing roles, benchmarking compensation, and networking, even without active applications

This behaviour reflects caution rather than instability. Employees are monitoring the market to understand their options, particularly when they feel uncertain about growth, workload, or leadership within their current organisations.

For employers, this creates a blind spot. Traditional retention indicators such as tenure and attrition rates no longer tell the full story. Disengagement now develops quietly and gradually, often months before an actual exit.

Why Weekly Experience Matters More Than Annual Increments

The study reveals that employees increasingly evaluate whether to stay or leave based on weekly experience, not annual rewards.

Factors consistently rated as important or very important include:

  • Workload sustainability
  • Manager quality and communication
  • Flexibility and autonomy
  • Psychological safety and respect
  • Clarity around expectations and progression

When employees feel overwhelmed, unclear about priorities, or unsupported by their managers, salary increases offer only temporary reassurance.

This explains why some organisations experience high levels of disengagement despite regular increments or competitive bonuses. Retention is no longer driven by pay alone, but by whether employees feel their work is manageable, meaningful, and respected on a weekly basis.

Hybrid Work and Retention: Expectations Have Shifted

Hybrid work has become closely linked to retention outcomes.

  • 61.7% of employees indicate a preference for hybrid arrangements
  • What employees value most is predictability, not unlimited flexibility

Retention challenges emerge when hybrid policies are unclear, inconsistently applied, or dependent on individual managers. Employees are more likely to disengage when expectations change frequently or feel unfairly enforced.

The data suggests that hybrid work supports retention only when it is paired with clear guidelines, manager capability, and consistent communication.

Career Security Is the New Retention Currency

Technology and skills evolution are reshaping how employees assess long-term fit.

  • 65.9% of Singapore employees report being comfortable using AI tools at work
  • Approximately three in four respondents rate upskilling as moderately to highly important

However, comfort with technology does not eliminate concern. Employees want reassurance that their roles will evolve alongside new tools, not become obsolete because of them.

Retention is increasingly tied to career security, not just job security. Employees are more likely to stay when they see clear pathways to relevance, progression, and skill development.

Why Retention Has Become Harder in 2026

Taken together, the findings point to a more cautious and reflective workforce.

Employees are:

  • Staying longer, but questioning fit more often
  • Browsing opportunities quietly rather than resigning quickly
  • Evaluating employers based on lived experience, not promises

For employers, this means retention strategies must evolve. Relying on compensation adjustments alone is no longer sufficient in a market where expectations around work quality have risen.

How Singapore Employers Can Strengthen Retention Beyond Pay

The data suggests several practical shifts for employers looking to reduce retention risk.

High-performing organisations focus on:

  • Designing roles that are sustainable in practice, not just in theory
  • Equipping managers to lead with clarity, empathy, and consistency
  • Communicating expectations and progression pathways transparently
  • Offering flexibility with structure rather than ambiguity
  • Aligning upskilling initiatives with real career outcomes

Most importantly, improvements must be felt week to week, not positioned solely as future rewards.

What This Means for Singapore Professionals

For employees, the findings offer clarity.

Reassessing priorities, benchmarking roles, and seeking better alignment are no longer signs of disloyalty. They reflect a workforce navigating uncertainty with greater intention and caution.

Professionals are encouraged to evaluate whether their current roles support sustainable performance, skill relevance, and long-term growth, not just short-term compensation.

 

Frequently Asked Questions (FAQ)

Why is paying more no longer enough to retain employees in Singapore?

While salary remains important, employees now weigh pay alongside workload, flexibility, management quality, and career security. Without improvements in these areas, pay increases have limited retention impact.

What are silent job browsers?

Silent job browsers are employees who monitor the job market without actively applying. They often reflect early-stage disengagement rather than immediate intent to resign.

Does hybrid work affect retention?

Yes. Hybrid work supports retention when expectations are clear and consistently applied. Poorly managed hybrid arrangements can increase frustration and disengagement.

How can employers identify retention risk earlier?

By paying attention to engagement signals, workload sustainability, manager feedback, and internal mobility conversations, rather than relying solely on attrition metrics.

 

For Employers
If you are reviewing your retention strategy for 2026, speak with Reeracoen to identify where silent disengagement may be emerging and how to strengthen retention beyond pay.

👉 Talk to Reeracoen Singapore about your retention strategy

For Professionals
If you are reassessing your current role or considering your next move, register for a confidential career conversation with our consultants.

👉 Start a confidential career discussion with Reeracoen Singapore

 

🔗 Related Articles (Singapore)

 

📚 References

 

✅ Final Author Credit
By Valerie Ong, Regional Marketing Manager, Reeracoen Group
Published by Reeracoen Singapore, a leading recruitment agency in APAC.

 

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