The appraisal cycle may have concluded, but job satisfaction remains elusive for many professionals in Singapore. According to the latest foundit Appraisal Survey 2025, just 53% of employees received a hike this year. And yet, a staggering 89% say they’re considering a job switch.
The message is clear: even generous pay hikes aren’t enough to retain talent. Employees are looking for more than just compensation: clarity, flexibility, and growth matter just as much, if not more.
Modest hikes were the norm
Across industries and roles, 5–10% was the most common appraisal range, reflecting a cautious approach by employers. Only 20% of respondents felt their hike was higher than expected, while 41% said their hike fell short.
This disconnect between contribution and reward is growing. Despite 69% rating the appraisal process as fair, the numbers suggest most companies are meeting the bare minimum, not ambition.
By industry: IT lags, while engineering leads in satisfaction
When broken down by industry, disparities come into sharper focus:
IT sector saw 32% employees getting no hike, and many felt their raise didn’t reflect their performance.
Retail and Trade were hit hardest, with 67% of employees receiving no increment — the highest across all sectors.
BFSI and IT stuck to a conservative band, with hikes mostly under 10% and none crossing the 15% mark.
Engineering, Construction, and Real Estate showed a clear divide — while 24% received hikes above 20%, a large share received no increment at all. In contrast, Manufacturing displayed a more balanced distribution, with only 26% receiving no hike and over 24% receiving hikes above 20%, indicating more consistent rewards across the workforce.
By function: engineering and finance stay stable
The story shifts slightly when viewed through a functional lens:
Engineering and Production roles saw the best outcomes, with hikes exceeding 15% in many cases.
Finance & Accounts fared well too, with only 17% not receiving any hike, a sign of stable reward structures.
IT roles remained the most impacted, with 42% receiving no increment.
Marketing, HR, and Sales roles faced subdued hikes: nearly 1 in 3 employees received no hike, and most others were offered <10%.
Promotions didn’t always come with pay
Promotions were another sore point.
While 42% of employees saw some form of career progression, 58% received no promotion at all.
More worryingly, 8% were promoted without a salary hike — a growing trend that may demotivate mid-level professionals who expect tangible rewards for stepping up.
Hike expectations weren’t met
When asked about how the hike aligned with expectations:
20% said it exceeded expectations
39% said it met expectations
41% said it was below expectations
The majority of those disappointed were from the IT sector. In contrast, professionals in Engineering, Construction, and Real Estate felt their hikes matched what their expectations.
Big hikes didn’t always mean satisfaction
The survey found that 25% of those considering a switch received just a 5–10% hike. But what stood out was that 18% of potential job seekers got hikes of over 20% and still plan to leave.
This trend signals a deeper issue: compensation isn’t the primary lever of retention anymore. Even high performers are ready to walk if other expectations go unmet.
What’s really keeping people from leaving?
When asked what might make them stay, the answers were telling:
60% cited flexibility and work-life balance
50% mentioned salary benefits
Only 20% pointed to career growth
These responses mark a clear shift in priorities. Professionals are placing greater value on workplace experience, autonomy, and personal well-being than on traditional incentives like promotions or pay.
The bottom line
For employers in Singapore, the takeaway is simple: hikes alone can’t buy loyalty. The modern workforce is looking for more. Respect, transparency, flexibility, and growth are a major concern for employees. Companies that fail to deliver on these fronts risk losing even their best performers, no matter how generous the increment.
