[Survey of SME Executives] Interest in Performance Evaluation Systems Exists, Yet ~80% Have No Concrete Plans: Exploring Reasons and Solutions

As work styles diversify, intuitive management is becoming insufficient to evaluate employee contributions. Consequently, interest in performance evaluation systems is rising among SMEs as a foundation for preventing turnover and boosting motivation.

Professional Studio Inc. (Headquarters: Chuo-ku, Tokyo; CEO: Ryutaro Ichikawa; https://professional-studio.co.jp/), which provides HR services including 'FirstHR' (https://first-hr.jp/), conducted a survey of executives at SMEs with 10–50 full-time employees to understand the adoption status and hurdles faced by companies without such systems.

The survey reveals that while there is a forward-looking interest in adopting evaluation systems, many companies are stalling due to practical difficulties in the execution phase.

[Key Findings] - Nearly half of management at companies without an evaluation system express interest in adopting one. - Despite this interest, approximately 80% have 'no concrete plans' or have left the implementation timeline 'undecided.' - About 30% cite 'not knowing how to create criteria suitable for their company' as a major hurdle.

1. 44.6% of SMEs with 10–50 employees report having 'no performance evaluation system.' Performance evaluation systems are essential for organizational management. In a preliminary survey, 53.7% of respondents indicated they have a system, while 44.6% reported they do not. This indicates a significant number of SMEs still lack the foundational structure for talent retention and development.

[Survey Overview] - Conducted by: Internal survey - Method: Internet survey (Freeasy, I-bridge Corp.) - Target Area: Japan - Period: - Preliminary: March 6–March 19, 2026 - Main Survey: March 26–March 28, 2026 - Respondents: - Preliminary: 847 executives at SMEs with 10–50 employees. - Main: 129 of the above who lack a system but are interested in adoption.