Performance Appraisal Season in Singapore: How to Retain Top Talent After Bonuses in 2026

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

Performance appraisal season is one of the most critical moments in Singapore’s annual talent cycle. It is also one of the most dangerous.

Each year, the period immediately after bonuses and performance reviews sees a sharp rise in resignation intent, even among employees who were rated as strong performers. For employers, this is often surprising. From the employee’s perspective, it is predictable.

In 2026, with hiring caution still present across several sectors and salary expectations remaining elevated, retaining top performers after appraisal season is no longer about pay alone. It is about trust, transparency, and credible career progression.

This article explains what is happening beneath the surface during appraisal season in Singapore and how employers can turn reviews into a retention advantage rather than a trigger for attrition.

Why Appraisal Season Triggers Resignations in Singapore

Singapore’s labour market has long been shaped by an annual rhythm:
performance reviews, bonuses, then movement.

According to Ministry of Manpower data and multiple employer surveys:

• Job switching typically peaks in Q1 and early Q2, after bonus payouts
• High performers are more likely to leave when expectations are not clearly met
• Employees often secure interviews before resigning, not after

A 2025 regional employer survey also found that over 60% of voluntary resignations occur within three months of appraisal season, even when bonuses are paid.

This tells us something important:
bonuses delay exits, but they do not prevent them.

What Employees Are Really Evaluating After Their Appraisal

When employees leave after reviews, it is rarely because of a single factor. Instead, they are reassessing three questions:

1. Was the appraisal fair and transparent?

Employees are not just reacting to ratings. They are reacting to how decisions were explained.

Common red flags include:

• Vague feedback without evidence
• Ratings that do not match prior conversations
• Sudden changes in expectations
• Inconsistent standards across teams

In Singapore’s increasingly informed workforce, perceived unfairness is one of the strongest drivers of disengagement.

2. Is my career actually progressing here?

A good rating without a clear future is often interpreted as a dead end.

Employees are asking:

• Will my role expand meaningfully this year?
• Is promotion realistic or symbolic?
• Am I gaining skills that increase my long-term employability?

Research consistently shows that lack of visible career progression outweighs compensation dissatisfaction when employees decide to leave.

3. Do I feel valued beyond this year’s results?

High performers, in particular, are sensitive to signals of trust and recognition.

They pay attention to:

• Whether managers discuss future development
• Whether training is offered proactively
• Whether leadership communicates openly about business direction

In 2026, retention is increasingly emotional as well as rational.

What Has Changed in 2026 Compared to Previous Years

Employers are operating in a different environment than pre-2023.

Key shifts include:

• More cautious hiring in selected sectors
• Greater internal mobility expectations, as companies try to retain skills
• Higher employee awareness of market value, even during slower hiring cycles

At the same time, employees are not necessarily chasing the highest salary. Many are seeking:

• Stability with growth
• Clear expectations
• Fair, consistent management

This creates an opportunity for employers who get appraisal season right.

How Employers Can Turn Appraisals into a Retention Lever

1. Separate performance evaluation from career conversations

One of the most effective practices in Singapore organisations is decoupling reviews from career planning.

Instead of compressing everything into one meeting:

• Use the appraisal to discuss performance outcomes
• Schedule a follow-up conversation focused on development and progression

This reduces defensiveness and increases clarity.

2. Be explicit about what comes next (and what does not)

Ambiguity drives attrition.

Employees prefer honesty over optimism. If promotion is not likely this year, say so clearly and explain:

• What needs to change
• What skills or results are required
• What alternative growth paths exist

Clear expectations retain more people than inflated promises.

3. Use post-appraisal onboarding, not just onboarding for new hires

Many companies overlook the concept of re-onboarding existing employees.

After appraisal season, consider:

• Refreshing role objectives
• Resetting KPIs
• Offering targeted upskilling
• Re-aligning expectations

This signals that the organisation is investing forward, not just evaluating backward.

4. Identify “flight risk” roles early

Retention is not uniform across the organisation.

High-risk profiles often include:

• High performers with limited role expansion
• Employees with in-demand technical skills
• Mid-career professionals experiencing role stagnation

Proactive engagement with these groups before resignation intent peaks is one of the most effective retention strategies.

The Cost of Getting Appraisal Season Wrong

Replacing a strong performer is expensive and disruptive.

Studies consistently show that:

• Replacing a professional employee can cost 1.5 to 2 times their annual salary
• Time-to-productivity for replacements can exceed six months
• Team morale often declines after high-performer exits

In a cautious hiring environment, unnecessary attrition creates compounding risk.

 

Frequently Asked Questions (FAQ)

1. Do higher bonuses guarantee retention after appraisal season?

No. Bonuses delay decisions but do not replace career clarity, fair management, or growth opportunities.

2. Should companies adjust appraisal cycles in 2026?

Some organisations are experimenting with lighter mid-year reviews, but clarity and consistency matter more than frequency.

3. Are high performers more likely to leave after reviews?

Yes. High performers often have stronger external options and higher expectations of growth and recognition.

4. How soon after appraisal season do resignations usually happen?

Typically within one to three months after bonuses are paid.

5. Can external market slowdown reduce post-appraisal attrition?

It may slow movement, but it does not eliminate dissatisfaction. Employees still plan exits even if they delay action.

 

What This Means for Singapore Employers in 2026

Performance appraisals are no longer administrative exercises.

They are retention moments.

Organisations that treat reviews as a compliance task will continue to lose strong talent quietly and steadily. Those that use appraisal season to reset trust, direction, and development will retain not just people, but capability.

 

For Employers
 Looking to strengthen retention and hiring outcomes in 2026?
 👉 Speak with Reeracoen to review your talent strategy and workforce plans.

For Professionals
 Considering your next career move after appraisal season?
 👉 Register your profile with Reeracoen to explore opportunities aligned with your growth.

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

 

🔗 Related Articles 

• Guidelines for Effective Performance Appraisals
• Retain Top Talent After Bonus Season
• Top 10 Reasons to Choose Recruiters for Company Hiring

 

📚 References

• Ministry of Manpower (Singapore), Labour Market Reports
• Aon and regional compensation outlook studies
• Reeracoen APAC employer and workforce insights
• OECD workforce retention research

 

 

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