The company’s EBC Pulse survey shows that just more than one in two firms (52 per cent) are optimistic about prospects in the year ahead, up from just 48 per cent six months ago.
A total of 45 per cent of the businesses surveyed say they are expecting increased sales and profits this year (up from 42 per cent previously).
This optimism is translating into increased investment in recruitment and technology.
The survey found nearly two out of five (39 per cent) businesses were planning to recruit more staff in the year ahead, with 54 per cent investing more in staff training. A total of 57 per cent of businesses survey says they will increase investment in technology.
Results for all three measures have ticked up from six months ago when 36 per cent planned to increase recruitment, 49 per cent planned to boost training and 55 per cent expected to invest more in technology.
However, most EBS are just expecting just modest growth. Only 6 per cent of firms surveyed said they are planning for “significant business growth”, up from 2 per cent six months ago.
The survey did highlight some causes for concern. Around four out of five (80 per cent) EBCs say the rising cost of benefit provision for employers is a concern for the next two years.
The potential impact of Brexit is also a concern. A total of 77 per cent of EBCs questioned said it was a concern over the next two years, but this figure remains is virtually unchanged over the past six months.
MetLife UK’s employee benefits director Adrian Matthews says: “The employee benefits market is proving resilient in the face of economic and political uncertainty, with EBCs increasingly optimistic about their own businesses.
“More than half of EBCs are now confident about the year ahead and that is translating into increased recruitment and investment as well as business growth despite worries about the rising cost to employers of benefits.”
He adds that in uncertain times employees increasingly valued these benefits.
This Pulse survey shows that EBCs believe that the industry will continue to see mergers and acquisitions in the year ahead, with 38 per cent of firms saying they planned to acquire other companies. This figure is slightly down on the 42 per cent who said they would buy firms the first time the question was asked.
A total of 200 EBC firms were surveyed.
