An increased number of small business owners think we are in an economic rebound and indicate a slight uptick in business activity, but plans to add employees and boost compensation levels are tepid, according to a business confidence survey released today by professional employer organization Insperity Inc. (NYSE: NSP).

Slightly more than 41 percent of respondents plan to add employees, compared to 39 percent in April and 50 percent in January’s survey; 54 percent are maintaining current staffing levels, down from 57 percent last quarter; and nearly 5 percent plan layoffs, up from 4 percent in April.

The survey found 28 percent plan to increase employee compensation, down from 29 percent in April and 46 percent in January; 62 percent plan to maintain compensation at current levels, up from 60 percent last quarter and 43 percent in January; 1 percent again expect compensation decreases; and 9 percent are unsure.

“Consensus for an economic rebound is building and overtime pay is now more than 10 percent. This would normally indicate a need for additional workers, but our latest survey reveals that business owners have not become aggressive in acting on that information,” said Insperity Chairman and CEO Paul Sarvadi. “Small business may be awaiting further leading confirmation such as an increase in average commissions, which is remaining relatively low.”

Additional survey results include:

• 56 percent of survey respondents expect sales to increase in 2014, down from 60 percent in April and 66 percent in January.
• Average compensation for the second quarter of 2014 increased 1.6 percent over the same quarter last year.
• 42 percent think an economic rebound is now in process, up from 33 percent in April’s survey.

Insperity conducted the survey from July 8 to July 10. It included CEOs, CFOs and other executives in a variety of industries from its base of approximately 5,300 U.S. workforce optimization clients.