62% of Large U.S. Companies Embrace Hybrid Work, but In-Office Mandates Persist

Flexible work environments continue to gain acceptance and become more integrated across the U.S. workforce this year, and firms with over 25,000 employees are a big part of that.

The latest Flex Index report for Q3 2024 shows that the structured hybrid model remains the most popular work arrangement among U.S. companies. It’s found that 38% adopt this approach — up from 37% in Q2 2024.

The average number of days required by employees to work from the office is 2.63 days. This is also a slight increase from the previous quarter, where the average number of days was 2.49. The report found that over half (62%) of larger firms with over 25,000 employees have installed hybrid work policies, which is another factor contributing to the moderate rise in required office days quarter over quarter.

Despite the fast rise in hybrid models when compared to last year, 33% of companies still mandate full-time in-office work for corporate employees. More than a quarter (29%) of firms included in the study have embraced a fully flexible approach — also reflecting a shift in workplace culture towards accommodating changing employee preferences.

Companies with fewer than 500 employees are also found more likely to be fully flexible, with 72% operating under this model.

Data on work environments also varies depending on the industry examined. For example, the technology sector is leading in work location flexibility, with 96% of companies offering such options. The Insurance and Telecommunications industries also rank high in flexibility. However, businesses in the Restaurants & Food Services sector are more likely to require full-time in-office attendance.

Top 5 Most Flexible Industries (percentage of companies that offer work location flexibility):

• Technology – 96%
• Insurance – 91%
• Telecommunications – 86%
• Professional Services – 83%
• Media & Entertainment – 83%

Top 5 Least Flexible Industries (percentage of companies that are full time in office):

• Restaurants & Food Services – 60%
• Education – 51%
• Hospitality – 42%
• Real Estate, Facilities, & Construction – 42%
• Aerospace, Defense, & Security – 40%

Massachusetts leads as the most flexible state, with 89% of companies offering some form of work location flexibility. Workplace flexibility is also found to be most common in states across the west and northeast.

Top 10 Most Flexible States (percentage of companies offering work location flexibility)

• Massachusetts – 89%
• Washington – 88%
• Oregon – 88%
• Colorado – 87%
• California – 86%
• Connecticut – 86%
• New York – 86%
• Utah – 84%
• Illinois – 84%
• New Hampshire – 84%

In southern states generally adhere more strictly to full-time, in-office requirements.

Top 10 Least Flexible States (percentage of companies that are full time in office):

• Mississippi – 32%
• Kansas – 30%
• Arkansas – 28%
• New Mexico – 27%
• Oklahoma – 25%
• Alabama – 25%
• Nebraska – 24%
• Nevada – 24%
• Louisiana – 24%
• Kentucky – 23%

Among metropolitan areas, San Jose, San Francisco, and Austin are leaders in offering employees greater flexibility in their work locations. Metros like Knoxville, Tennessee, and Greensboro, North Carolina, are shown to require more full-time, in-office work.

The data suggests that as hybrid and fully flexible work models continue to spread across the U.S. in terms of popularity and acceptance — particularly among larger firms and in specific industries.

The future of work is likely to be characterized by increased employee autonomy and a more flexible approach to physical work locations. However, the persistence of full-time in-office requirements in certain sectors and regions suggests that the transition to flexible work environments will be for those employers that can make these environments work for their firms.