Business confidence in Sussex is on the rise and so is recruitment.

But some firms will need to work hard to attract new employees after making redundancies earlier this year.

Consultants TMP Worldwide said forty-five per cent of businesses in the region had made redundancies or frozen recruitment.

One-in-five had slashed training budgets, 16 per cent cut staff bonuses and 14 per cent reduced other perks, such as pensions.

Only five per cent of companies said they had not had to make any cuts.

Looking forward, the picture is far more positive.

More than a quarter of businesses expect staff numbers to increase during the next quarter, with only 13 per cent anticipating a decrease and 53 expecting no change.

Eight out of ten of South East businesses appear more confident about their prospects.

But TMP said the rising confidence should sound a warning bell for many firms seen as bad employers for their redundancy record.

Sixty-eight per cent of South-East businesses said they had to communicate bad news, such as redundancies or pay freezes. Half of those businesses believed it had no impact on their reputation as an employer.

Only a few believed it had had a negative impact on the company name.

Seven per cent believed such actions would have had a positive impact on their employer brand.

TMP chief executive Chris Herrmannsen said: "Too many businesses in this part of the country are too casual about the value of these brands and how to develop them. Companies need to act now to restore their reputations or risk losing out."

Eight out of ten firm said a strong employer reputation was important in the battle to attract, hire and retain the best talent.

Mr Herrmannsen said when employers were asked about a number of specific actions or policies that might define a best practice employer - an open-door policy, staff training, a positive work/life balance, support for employees who have been made redundant and a fast track system for the best talent - only 13 per cent of firms said they offered them all. Many said they were intending to take steps to improve their names.

Mr Herrmannsen said: "Economic recovery will inevitably come and the war for talent will be back on again."