[Survey on Wage Increases for SME Employees] 73.0% of Employees at Companies with HR Evaluation Systems and Management Plans Experienced Wage Hikes, Compared to 38.0% at Companies Without – a Gap of Approximately Double

Japan Personnel Management Laboratory Co., Ltd. (Headquarters: Shibuya-ku, Tokyo; Representative Director: Koji Yamamoto) conducted a survey of 400 general employees working at small and medium-sized enterprises (SMEs) nationwide to investigate the actual state of wage increases and the impact of having HR evaluation systems and management plans on employee engagement and retention.

## Survey Topics

- A gap of approximately double in wage increase implementation rates between companies with and without HR evaluation systems and management plans.
- Over 90% of employees received wage increases of less than 5%, creating a gap between reality and desired wage hike levels.
- Over 60% of employees are dissatisfied with wage increases; satisfaction is lower at companies without HR evaluation systems and management plans.
- 43% of employees at companies with both systems feel their evaluations are fair, compared to only 24% at companies with neither.
- The most common reason for feeling undervalued at companies without systems is the 'black box' (opaque) nature of evaluation criteria, with the absence of an HR evaluation system being a primary cause of distrust.
- Over 70% of employees at companies with both systems understand their role, compared to less than 40% at companies with neither, a gap of nearly double.
- Only 14% of employees at companies without systems feel that employee development is adequate, compared to 41% at companies with both. The main reasons cited are a lack of development frameworks, resources, and management skills.
- Companies without HR evaluation systems face a sharply increased risk of employee turnover due to dissatisfaction with pay, creating a significant difference in retention rates based on the presence of these systems.

## Survey Overview

- Area: Nationwide (Japan)
- Target: 400 general employees working at SMEs nationwide (100 each from companies with both HR evaluation systems and management plans, only HR evaluation systems, only management plans, and neither)
- Survey Period: April 22, 2026 – April 23, 2026
- Method: Internet survey

## Detailed Survey Results

### A gap of approximately double in wage increase implementation rates between companies with and without HR evaluation systems and management plans.
When asked if their salary had increased in the past year, a combined 56.8% of all respondents reported receiving a wage increase ('increased significantly' or 'increased slightly'). Broken down by the presence of HR evaluation systems and management plans, 73.0% of employees at companies with both systems reported an increase, compared to only 38.0% at companies with neither, revealing a gap of approximately double in wage increase implementation rates.

### Over 90% of employees received wage increases of less than 5%, creating a gap between reality and desired wage hike levels.
Among those who received a wage increase in the past year, 59.9% reported an increase of 'less than 3% (about 1-2%),' followed by 32.2% reporting '3% or more but less than 5% (about 3-4%),' meaning over 90% received increases of less than 5%. However, when asked about their desired wage increase, 27.0% wanted '5% or more but less than 10% (about 5-9%),' and 18.0% wanted '10% or more,' totaling 45.0% of employees seeking increases of 5% or more, indicating a gap between the reality of wage increases and employee expectations.

### Over 60% of employees are dissatisfied with wage increases; satisfaction is lower at companies without HR evaluation systems and management plans.
When asked about their satisfaction with current salary levels and recent wage increases, a combined 64.1% of all respondents reported being 'not very satisfied' or 'not at all satisfied.' Broken down by the presence of systems, this figure rose to 72.0% at companies with neither HR evaluation systems nor management plans, suggesting that the lack of evaluation and vision diminishes satisfaction with pay.

### 43% of employees at companies with both systems feel their evaluations are fair, compared to only 24% at companies with neither.
When asked if they feel their work results and processes are fairly evaluated by their company, 43.0% of employees at companies with both systems responded 'feel it strongly' or 'feel it somewhat,' compared to only 24.0% at companies with neither, demonstrating that the presence of clear systems significantly impacts perceived fairness of evaluations.

### The most common reason for feeling undervalued at companies without systems is the 'black box' (opaque) nature of evaluation criteria.
When asked why they feel their work is not evaluated, 26.3% of employees at companies with both systems cited 'evaluation criteria are a black box (opaque).' This figure jumped to 63.5% at companies with a management plan but no HR evaluation system, and 48.7% at companies with neither, indicating that the absence of clear evaluation criteria generates strong distrust among employees.

### Over 70% of employees at companies with both systems understand their role, compared to less than 40% at companies with neither.
When asked if they understand the role and goals expected by their company, 76.0% of employees at companies with both systems responded 'I understand,' compared to only 38.0% at companies with neither, revealing that many employees at companies without systems lose sight of the company's direction and their own role.

### Only 14% of employees at companies without systems feel that employee development is adequate.
When asked if they feel employee development is sufficient, 41.0% of employees at companies with both systems responded 'feel it strongly' or 'feel it somewhat,' compared to only 14.0% at companies with neither, a significant gap. When asked why they feel development is inadequate, 54.1% of all respondents cited 'the company lacks a clear education/training program,' followed by 'daily work is too busy to secure time for development and guidance' (41.7%) and 'supervisors and seniors lack coaching and management skills' (40.0%), pointing to insufficient systems and resource constraints on the company side.

### Companies without HR evaluation systems face a sharply increased risk of employee turnover due to dissatisfaction with pay.
When asked if they want to continue working at their current company, 63.0% of employees at companies with both systems responded 'strongly agree' or 'somewhat agree,' compared to only 41.0% at companies with neither, showing a significant difference in employee engagement based on the presence of these systems. When asked why they do not want to continue, 49.0% of all respondents cited 'dissatisfaction with salary and benefits.'