Despite the advantages it can bring, 16 per cent of businesses have no flexible working policy.
HR Magazine says that the gains can be considerable for firms that do have such a policy in place, with 39 per cent reporting that flexible working makes their staff more productive and 43 per cent saying that it helps to retain employees.
This is perhaps not a surprise given that 47 per cent of UK employees view it as their most important employment benefit.
Flexible working is being widely encouraged during the Olympic Games in London this summer to help reduce the burden on public transport and road systems.
Today (February 8th), the concept got another boost when O2 launched the UK's biggest ever flexible working pilot with 3,000 of its employees switching off the lights at the company's Slough HQ and working from home.
O2 says that flexible working improves staff engagement, boosts productivity and ensures a better work/life balance for employees.
As well as boosting morale, flexible working can also help reduce harmful emissions and the associated expenses incurred through electricity use and travel.
The company says that, with a third of businesses planning to adopt flexible working this summer, it will share its knowledge gained from this pilot scheme with other organisations.
Ben Dowd, O2's business director, said: "We want to show that there are no limits - no matter how big or small your business is.
"By sharing experiences from across our business, from business divisions to operations, we hope to encourage more organisations to help their workforce become mobile."
Businesses that do want to see employees spending less time in the office will need to consider their office insurance needs.
The organisers of the London Games are warning employers that remote working brings with it employee health and safety concerns, the potential for equipment to be removed from the business premises where it is insured and data protection issues. 
