A report released today by the Singapore Institute of Directors (SID) and Gallup found that only 14% of employees in Singapore were engaged at work in 2025. That's below the Southeast Asia average of 25%, and well below the global mean of 20%.

The Manager Problem Nobody Talks About
Gallup's research is clear: managers account for roughly 70% of the variation in team engagement levels. Not the CEO's vision. Not the HR policy deck. The manager in the middle.

Yet the Singapore Workplace Report 2026 found that senior leaders rated their own managers just 3.32 out of 5 for effectiveness. Gallup estimates organizations pick the wrong manager 82% of the time.

The SME Reality
For an SME with 20 or 50 people, a disengaged team is existential. Disengaged workers cost Singapore US$73.6 billion in lost productivity annually.

What Actually Works
1. Identifying and developing employees' strengths
2. Regular recognition and feedback
3. Clear expectations with accountability and support

Companies with clear processes and structured systems tend to have better managers — because their managers aren't drowning in admin. When payroll runs smoothly and compliance is handled, managers can actually manage.

Singapore is the world's most competitive economy. But a 14% engagement rate means we're leaving enormous human potential on the table. The question for every SME owner: what have I given my managers to help them lead?

Source: Singapore Workplace Report 2026, SID x Gallup, 22 June 2026
https://businesstimes.com.sg/singapore/economy-policy/managers-key-employee-engagement-singapore-leaders-rate-them-only-modestly-effective-report