How Flexible Are US Firms Today? New Flex Index Insights

Why are business leaders pushing for more office time, and which industries are leading the way in adopting work flexibility?

These are tough questions, and as HR leaders, you likely have and feel the pressure to answer them.

Let me share with you the latest data from the Flex Report to provide you with a clearer and broader understanding of how firms are offering work flexibility.

The Q3 20224 Flex Report from Flex Index reveals the following key findings:

• 67% of US firms offer work location flexibility.
• 90% of firms founded since 2011 are now offering flexibility.
• Structured Hybrid models, which blend remote and in-office work on a set schedule, are now adopted by 38% of U.S. firms. 
• Financial Services falls out of the top five most flexible industries, while the technology sector leads, with 96% of companies offering flexibility.
• Larger companies lean towards more office time.

As the report highlights, the US economy has shown signs of softening, and it's driving headlines around the return-to-office.

But the reality is different: let's explore.

Headlines versus Reality: The Real State of Hybrid Work

The unemployment rate rose to 4.3% in July 2024, construction spending unexpectedly declined, and manufacturing activity contracted for the fourth consecutive month. In response, markets anticipate the Fed’s first rate cut of this economic cycle in September. 

But despite hybrid work statistics indicating that there is no positive correlation between in-office work and productivity or revenue, the report emerges amid debates that a weakening economy might force companies to bring employees back to the office. 

Whether you’re looking to make a case for hybrid work or want to optimize your model, these figures should be helpful. 

Key Finding #1: 67% of US firms offer work location flexibility

67% of US firms, accounting for industry variations, provide work location flexibility, meaning they don’t mandate corporate employees to work full-time in the office.

This reflects a slight decrease from Q2 2024, when 69% of firms offered this flexibility.

The present two-thirds to one-third ratio in work location flexibility marks a notable shift from the first Flex Index report in Q1 2023.

Back then, the split was almost even, with 51% of firms offering flexibility and 49% requiring full-time office attendance for corporate employees.

Key Finding #2: 90% of firms founded since 2011 are now offering flexibility

There’s a strong correlation between the age of a company and its likelihood of offering work location flexibility. Less than 70% of companies founded before 1995 provide this flexibility, while over 90% of firms established in 2011 or later do.

This trend is consistent among larger firms as well. For companies with over 500 employees, less than 70% of those founded before 2000 offer work location flexibility, compared to 89% of those established in 2011 or later.

Key Finding #3: 38% of Companies Have Adopted Structured Hybrid Models

"Structured Hybrid," which covers all hybrid work policies where there's neither a fully-in-office mandate nor complete flexibility, remains popular.

in this model, employees divide their workweek between working from home on some days and working in the office on others, with these schedules being predefined and mutually agreed upon. According to the report, this type of hybrid work schedule is the most popular among all working models.

The "Minimum Days/Week" model remains the preferred choice for companies implementing a Structured Hybrid approach, with 74% of companies adopting this model. 

Overall, minimum requirements are widely favored, with 85% of Structured Hybrid companies implementing some form of minimum, whether it's based on days or a percentage of time.

The report also shows that companies with a Minimum Days/Week policy usually ask employees to be in the office about 2.63 days per week, which is the same as the average.

Key Finding #4: Financial Services drops out of the top five, while Technology leads with 96% of companies offering flexibility

Technology and Telecommunications rank among the top three most flexible industries, with Insurance securing the second spot, offering 91% of companies work location flexibility.

Professional Services (83%) replaces Financial Services in the top five.

On the opposite end, Restaurants & Food Services are most likely to require full-time office presence for corporate employees, followed by Education and Hospitality. 

Real Estate and Aerospace, Defense, & Security industries also rank high in demanding full-time in-office work.

Key Finding #5: Larger companies lean towards more office time

Smaller firms with 500 or fewer employees are most likely to choose Fully Flexible models and least likely to require Full Time In Office. In contrast, larger firms favor Structured Hybrid models and are least likely to be Fully Flexible.

Among companies with 500 to 5,000 employees, Full Time In Office is the prevailing requirement, making it the only size group where in-office work is the most common.

The Bottom Line

I know you don't want to be like the older companies that are less willing to offer work flexibility compared to newer ones, and I understand that you're likely tired of all the debates about hybrid work.

Still, this data clearly shows that most companies still offer a hybrid work model, most often "Structured Hybrid."

As 2024 progresses, we’ll be watching to see how flexible work trends evolve amidst economic changes, especially when economists like Nick Bloom argue that economic challenges could actually increase remote work as businesses look to cut office expenses. 

I hope this data helps you make your arguments, and if you need anything else, feel free to reach out to me here.

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For more about hybrid remote work, check out our 2024 guide to hybrid work, the top desk booking software, and our 2024 guide to hybrid office design and management.