Remote work firms grow 1.7x faster than office-only peers: Flex Index

CALIFORNIA, UNITED STATES — New global data reveals a stark divide in the future of work: companies embracing flexible and remote work are growing significantly faster than those enforcing strict in-office requirements. 

According to research from The Flex Index—a collaboration between the think tank Work Forward and Boston Consulting Group (BCG)—businesses that allow employees to work remotely are expanding revenues 1.7 times faster than their office-mandate peers from 2019 to 2024. 

Even after adjusting for industry and company size, this growth advantage remains, with flexible firms outpacing others by 34% annually. The trend is especially pronounced among smaller companies, which are now leading the way in both flexibility and business performance.

The flexibility gap: Why small firms are outpacing giants

While headlines often focus on tech giants and Fortune 100 companies tightening return-to-office (RTO) mandates, the real story is happening at smaller firms. The Flex Index finds that 67% of companies with under 500 employees are “fully flexible,” allowing remote work as desired—outpacing large corporations by a wide margin. 

In contrast, nearly half of Fortune 100 firms now require four or five days a week in the office, and only 29% remain fully remote or hybrid. The gap is widening, and the competitive implications are clear.

Brian Elliott, CEO of Work Forward, explained to Inc.: “Regardless of size, flexibility serves as a competitive edge. Across all industries and company sizes, businesses are leveraging flexibility to attract and retain talent.” 

He points to real-world examples, such as when AT&T mandated a full-time office return and Verizon capitalized by recruiting top talent seeking more flexibility. 

“Even if your employees stick around after you demand they return to the office full time, they’re unlikely to be happy about it,” Inc. notes. The higher growth at more flexible firms is “at least in part due to higher engagement: mandates drive it down, resulting in ‘quiet quitting’,” according to Elliot.

The real impact of return-to-office mandates

For all the talk of “remote work is dead,” the data tells a different story. A KPMG survey of 1,325 CEOs last year found 80% believed remote work would soon be obsolete. 

Yet, actual office attendance has barely budged—Stanford economist Nick Bloom describes it as “flat as a pancake,” despite a small uptick in RTO mandates, largely driven by government sectors. 

Meanwhile, smaller firms are not even attempting to bring workers back full-time, instead focusing on outcomes and trust.

Elliott argues that the growth advantage of flexible firms isn’t just about attracting talent—it’s about building a better management culture. 

“If you treat adults like children and force them to march into offices five days a week, they’ll punch the clock,” he says. “Smaller firms, with fewer resources, are developing more sophisticated management practices around trust and outcomes, while larger firms with extensive HR departments retreat to presence-based oversight.”

The research also suggests that strict office policies can backfire. Employees under RTO mandates may spend their time creating the appearance of productivity rather than delivering real results. 

In contrast, flexible companies are more likely to set clear objectives, use consistent check-ins, and build accountability from the ground up—practices that drive both engagement and performance.

The way forward: Flexibility as a growth strategy

The evidence is now overwhelming: flexibility is not just a perk but a measurable driver of growth. “Flexibility directly impacts business performance,” The Flex Index reports. 

As the gap between flexible and traditional firms widens, the message for business leaders is clear. Large corporations pushing RTO risk losing both talent and momentum, while smaller, agile firms are reaping the rewards of a modern, trust-based workplace.

For executives weighing the future of work, the choice is becoming starker by the quarter. The most successful organizations—especially smaller ones—are those investing in the systems, culture, and trust necessary for remote and hybrid success. 

As Elliott puts it, “The advantage comes from building these practices from the ground up rather than retrofitting them onto command-and-control structures.”

For a global audience of business leaders, the lesson is unambiguous: in the race for growth, flexibility isn’t just an option—it’s an imperative.