In Singapore’s tight 2025 labour market, talent retention is no longer just about offering a bigger paycheck. Today’s workforce—especially younger PMETs—is prioritising benefits that offer long-term security, flexibility, and well-being. From mental health support to career growth, the real competitive edge lies beyond salary. Salary still matters but it’s not everything. Workers, especially Millennials and Gen Z, are looking for something more: they want security, balance, and to know their employer genuinely cares.

‍Singapore’s Workforce Is Smarter — and Pickier

The local workforce is changing fast. By 2024, professionals, managers, executives, and technicians (PMETs) made up almost two-thirds of employed residents (63.7%), and more than 63% of workers now hold a degree. The tech sector is booming, with salaries around SGD 7,000 but also one of the highest turnover rates, with nearly half of employees leaving their jobs each year.

What does this mean for employers? Talented people know their worth. They won’t stay just because you pay them slightly more. They’re looking at the full package: medical coverage, flexibility, mental health support, and career growth.

The Cost of Poor Employee Health

If you think benefits are “too expensive,” think again. Poor employee health is even costlier.

• Globally, companies lose USD 575 billion every year to illness-related absences and underperformance.

• Mental health struggles alone cost USD 47.6 billion in lost productivity annually.

• For a company with 1,000 employees, health-related issues can easily drain millions of dollars a year.

And in Singapore? Surveys show 73% of workers rank healthcare and wellness as a top factor when choosing an employer, while 68% value comprehensive coverage over salary alone.

Why Benefits Beat Salary

Salary is short-term. Insurance and benefits are long-term. Here’s why they matter more than an extra 10% raise:

1. Peace of mind: One hospital bill can wipe out months of salary increases. Insurance protects employees and their families.

2. Loyalty & retention: Competitors can copy your salary offer, but they can’t easily match a strong benefits plan.

3. Engagement & productivity: Employees with access to wellness programmes report 23% fewer sick days.

4. Employer brand: Companies with robust benefits are seen as more stable, caring, and future-focused.

It’s More Than Just Insurance

Yet here’s the catch: insurance alone isn’t enough. Coverage without culture won’t solve absenteeism or burnout. Research shows that health insurance contributes only 10–20% to overall health outcomes; lifestyle and workplace environment matter much more.

That’s why forward-looking companies are adding:

• Free annual health screenings

• Stress management workshops and mental health support

• Work-life balance

• Nutrition programmes and fitness initiatives

The ROI is undeniable: WHO studies show companies can get back up to 5 times every dollar invested in employee health.

The Talent Advantage of Tomorrow

A healthy workplace isn’t just about perks — it’s about respect, recognition, and room to grow. When companies invest in personal development and genuinely support their people, they build a culture where employees want to stay, contribute, and thrive.

At the end of the day, every company’s success is powered by its people. Value them, and you create growth that lifts everyone together.

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👉 Ready to rethink your benefits strategy? Talk to us today to explore how we can help you attract talent, keep your best people, and control costs at the same time.