[SME Awareness Survey] Less than 30% of employees perform to their full potential. Continuous loss of 720,000 to 1 million yen per person annually revealed.

Many managers are investing in 'new strategies' such as DX, new businesses, and human capital management into their organizations.

However, are they achieving the results (financial metrics) commensurate with that investment? The latest independent survey (January 2026, N=542) conducted by Nexent Inc. (CEO: Yoshinori Nukamiya) has highlighted the malfunction of 'organizational structure' that many managers have turned a blind eye to.

The survey revealed that only 29.5% of employees feel they are demonstrating 90% or more of their true potential. The reality that 70% of employees are unable to fully utilize their abilities has previously been said to incur a labor productivity loss cost of approximately 720,000 yen per person annually. While this figure was announced before the COVID-19 pandemic, this survey confirmed that a similar or even greater loss of nearly 1 million yen continues to occur.

## 1. Background of the Survey: 'Why aren't strategies executed on the frontline?'
Currently, Japanese companies are introducing many 'strategies' such as promoting DX and human capital management.

However, because the foundation remains outdated, there are frequent cases where investments do not translate into results.

This survey aimed to visualize 'buried profit' (loss of profit not visible on financial statements) and highlight the structural issues preventing sustainable corporate growth.

## 2. Survey Summary
- [Quantitative: Buried Profit] It was found that inadequacies in the organization's execution foundation generate a buried profit loss of approximately 720,000 yen per employee annually.
- [Fact: Utilizing Potential] Less than 30% of employees feel they are maximizing their performance, revealing that the management assumption of '100% effort is standard' has collapsed.
- [Structure: Execution Foundation] More than individual health or motivation, organizational structural factors, specifically 'whether management intent is conveyed to the frontline', largely determine performance.

## 3. Major Survey Findings
This survey revealed that the factors hindering the utilization of true potential depend more deeply on 'organizational structure' than on individual consciousness.

### 1) [Collapse of Assumption] '100% execution' is by no means the standard
The group that can demonstrate their true potential (90-100 points) is a minority at 29.5%. It was confirmed that the management premise itself—that 'employees should inherently be motivated'—is difficult to sustain in modern organizational structures.

### 2) [Dominance of Structure] 'Organizational Foundation' dictates results more than personal condition
Even if personal conditions such as sleep and exercise are good, the group with a low evaluation of the organization's execution foundation scores 26.8 points lower in performance compared to the high-evaluation group. This is a state where individual efforts are canceled out by a dysfunctional structure.

### 3) [Weakening of Foundation] Clogging of the 'pipe' connecting management intent and frontline results
The mere presence or absence of the feeling that 'management policies are being practiced on the frontline' creates a 15.1-point gap in individual performance. Strategies 'stagnate' not because of a lack of employee ability, but because the 'foundation' meant to carry management's intentions is not functioning.

## 5. Survey Overview
- Survey Name: Fact-finding Survey on Organizational Execution Foundation and Productivity Loss
- Target Audience: SME managers nationwide (n=43), and general employees (n≈500)
- Survey Period: January 2026
- Survey Method: Internet-based panel survey (using Questant)
- Main Items: Work performance