Small Businesses Lead in Offering Full Flexibility, The Flex Index Finds

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As employee demands for greater flexibility in the workplace rise, flexible work environments are seen more and more as a viable attraction and retention strategy for businesses — influencing commercial office trends and the labor market.  

Some of these trends were analyzed in the recent Flex Index Q1 2024 report, which provides deeper insights into the adoption of flexible work models, including hybrid work models, and it reveals subtle differences in work policies depending on the geographical location and the size of the business.  

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The data suggests that small companies favor fully flexible work arrangements. It’s reported that 74% of businesses with fewer than 500 employees use fully flexible work models. Additionally, 48% of organizations with 5,000 to 25,000 employees adopt structured hybrid environments. This is also the most adopted workplace model for 65% of organizations with 25,000 or more employees.   

The top 10 most flexible states (states with the highest percentage of companies offering location flexibility) were: 

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1. Massachusetts – 90% 
2. Washington – 90% 
3. Colorado – 89% 
4. Oregon – 88% 
5. California – 88% 
6. New York – 87% 
7. Utah – 85% 
8. Connecticut – 85% 
9. Illinois – 84%  
10. Maryland – 84% 

The data also reveals that there is a preference for adaptable working environments is especially prevalent in the West and Northeast regions of the United States. On the flip side, many cities in the South, particularly in cities like Knoxville and Memphis, Tenn., show the most resistance to this trend. 

The top 10 least flexible states were (percentage of companies that are full-time in-office): 

1. Mississippi – 44%  
2. West Virginia – 37% 
3. Arkansas – 32%  
4. Kansas – 31%  
5. Alabama – 29%  
6. Louisiana – 28% 
7. Kentucky – 28%  
8. Oklahoma – 26%  
9. Nevada – 25% 
10. Tennessee – 25% 

Diving deeper, the data reveals that the top 10 least flexible metros were (percentage of companies that are full-time in-office):  

1. Knoxville, Tenn. – 40%  
2. Memphis, Tenn. – 36%  
3. Brimingham, Ala. – 33%  
4. Tulsa, Okla. – 32%  
5. North Port, Fla. – 30%   
6. Louisville, Ky. – 30%  
7. Greensboro, N.C. – 30% 
8. Fayetteville, Ark. – 29%  
9. Columbia, S.C. – 29%  
10. Springfield, Mass. – 28% 

The technology sector is also particularly pioneering in this domain, with a remarkable 97% of technology companies allowing varying degrees of work location flexibility.  

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The data also reveals that the standard number of days per week required for hybrid workers to be in the office has stabilized. 88% of structured hybrid companies now require employees to physically attend the office for an average of 2.57 days each week — a requirement that has remained relatively unchanged since early 2023, according to the report. 

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