[SME Awareness Survey] Less Than 30% of Employees Performing at Full Potential; Annual Loss of ¥720,000 to ¥1 Million Per Person Continues

Many business owners are investing in 'new strategies' such as DX, new business ventures, and human capital management within their organizations. However, are these investments yielding commensurate results (financial indicators)? A recent proprietary survey conducted by Nexcent Inc. (Representative Director: Yoshinori Gakumiyya) (January 2026, N=542) has highlighted the deficiencies in 'organizational structure' that many business owners have been avoiding. The survey found that only 29.5% of employees feel they are performing at over 90% of their potential. The reality that 70% of employees are not fully utilizing their capabilities has historically been associated with an annual labor productivity loss cost of approximately ¥720,000 per person. While this figure was announced before the COVID-19 pandemic, this latest survey confirms that a loss of nearly ¥1 million, similar to or greater than before, continues to persist. 1. Background of the Survey: "Why Aren't Strategies Being Executed on the Ground?" Currently, Japanese companies are implementing numerous 'strategies' such as promoting DX and human capital management. However, because the foundation remains outdated, many investments are failing to translate into results. This survey aimed to visualize 'hidden profits' (hereinafter referred to as 'buried profits'), which do not appear on financial statements, and to highlight structural challenges for sustainable corporate growth. 2. Survey Summary ・【Quantitative: Buried Profits】 It was found that approximately ¥720,000 in buried profits per employee occurs annually due to deficiencies in the organization's execution foundation.

・【Fact: Performing at Full Potential】 Less than 30% of employees feel they are performing at their maximum capacity, revealing a reality where the management premise of '100% performance being the norm' is collapsing.

・【Structure: Execution Foundation】 More than individual health and motivation, organizational structural factors such as 'whether management's intent is communicated to the ground' significantly dictate performance.

3. Key Survey Findings This survey revealed that the factors hindering employees from performing at their full potential depend deeply on 'organizational structure' rather than individual consciousness. 1) 【Collapse of Premise】'100% Performance' is Not the Standard Those performing at their full potential (90-100 points) are a minority at 29.5%. It was confirmed that the very premise of management, 'employees are inherently motivated,' is becoming difficult to establish within modern organizational structures. 2) 【Dominance of Structure】'Organizational Foundation' Dictates Results More Than Condition Even when personal conditions such as sleep and exercise are good, individuals in the low-evaluation group for the organization's execution foundation show a performance score that is 26.8 points lower than those in the high-evaluation group. This indicates a state where an inadequate structure negates individual effort. 3) 【Weakening Foundation】Clogging of the 'Pipe' Connecting Management Intent to Ground-Level Results The mere presence or absence of the feeling that 'management's policies are being practiced on the ground' creates a 15.1-point difference in individual performance. Strategies stagnate not due to a lack of employee ability, but because the 'foundation' for conveying management's intentions is not functioning. 5. Survey Overview ・Survey Name: Survey on the State of Organizational Execution Foundations and Productivity Losses

・Survey Target: Managers of SMEs nationwide (n=43), and general employees (n≈500)

・Survey Period: January 2026

・Survey Method: Panel survey using the internet (Utilizing Questant)

・Main Items: Work performance