Smaller Companies, Bigger Flex

In Q4 of 2023, one-third of U.S. companies allow corporate employees to work fully remotely, without the need to come into the office.

The majority of U.S. companies are entering 2024 with flexible and hybrid work arrangements.

According to the latest Flex Report published by Flex Index, one-third of U.S. companies allow corporate employees to work without the need to come into the office. This trend has remained consistent since the Q3 2023 report and recorded a slight increase since the beginning of the year. The persistent increase in flexible work arrangements among U.S. companies is a clear indication that the traditional office work model is still fading.

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Flex Index’s data adds credence to this. The report reveals that for structured hybrid environments, 87% of companies require employees to be in the office for 2-3 days per week, averaging 2.54 days. The data’s consistency suggests that businesses are finding a nice balance between remote and in-office work while maintaining productivity and collaboration — offering employees greater flexibility.

Industry-wise, the report states that technology companies are at the forefront of this change, with 97% offering some form of work location flexibility. Media and entertainment follow closely (92%). However, industries like restaurants and food services are reported to be less flexible, likely due to the nature of the business having to rely on in-person interactions.

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Geographically, Massachusetts leads in work flexibility, with 89% of companies offering some form of flexible work. Flexible work opportunities were found to be more pronounced in the West and Northeast U.S., while Southern states are more are reported to be more inclined towards full-time office work.

Most notably, company size plays a major factor in work flexibility. According to the data, smaller companies (under 500 employees) were found to be more likely to offer full flexibility for employees, whereas larger companies (25,000+ employees) prefer more structured hybrid models. Medium-sized companies are gradually moving away from full-time office work.

The findings published by Flex Index highlight changes in corporate culture as the world prepares to enter 2024. As companies adapt to this new normal, the majority of the workforce will also need to adjust to balancing remote and in-office work.