California has made a strong showing in workplace flexibility rankings, landing in the top 10 list of most flexible states, with two of its cities also recognized in the top 10 most flexible metros. San Jose ranks first and San Francisco second, highlighting the state's commitment to flexible work environments, despite Riverside's position on the least flexible metros list.
According to The Q3 2024 Flex Report by The Flex Index, 86% of companies across California offer workplace flexibility, placing the state fifth among the top 10 most flexible states nationwide. In San Jose, a remarkable 92% of companies provide flexible work options, making it the most accommodating metro in the country. San Francisco follows closely, with 90% of its businesses embracing similar policies, further underscoring the Bay Area’s leadership in adapting to modern workforce demands. However, not all of California shares this progressive approach, as Riverside ranks among the least flexible metros, with only 73% of companies offering workplace flexibility.
Los Angeles, another major hub in the state, ranks 13th on the list of most flexible metros, with 86% of its businesses providing flexibility to their employees. While cities like San Jose and San Francisco are setting the pace, Riverside's lower ranking signals that there are still areas in California where more work is needed to expand flexibility in the workplace. The contrast within the state reflects a broader trend, where tech-driven cities are pushing for flexibility, while other regions lag behind
Sixty-seven percent of U.S. firms now provide work location flexibility, marking a significant increase from 51% in the first quarter of 2023, although this reflects a slight decrease from 69% in the second quarter of 2024. More than 90% of firms established since 2011 offer flexibility, indicating a strong correlation between a company's age and its likelihood of providing such options, applicable to both small and large organizations.
The popularity of structured hybrid models is on the rise, with 38% of U.S. firms adopting this approach, up from 37% in the previous quarter and significantly higher than the 20% in early 2023. Conversely, fully flexible models have decreased in popularity, dropping from 32% to 29% quarter over quarter.
The average time employees are required to spend in the office has increased, now to 2.63 days per week, up from 2.49 days in the previous quarter. This average holds true across all firms and specifically for those with structured hybrid models.
In terms of industry flexibility, financial services has fallen out of the top five most flexible sectors, with tech and telecommunications taking two of the top three spots. Additionally, large companies with 25,000 or more employees are gradually moving toward requiring full-time office attendance, with 25% of these firms now mandating it.
Regionally, the West and Northeast lead in offering work location flexibility, with nine of the top ten states for such policies located in these areas. In contrast, the South has the highest concentration of states and metropolitan areas that require full-time office work for corporate employees.