On average staff would be prepared to sacrifice 11% of salary to work flexibly - but 9% would sacrifice up to 20% of their pay.
More than eight out of 10 employees (85%) think flexible working creates new jobs, keeps staff in work and helps people get back into work while 61% would work flexibly if their country had flexible working legislation rights.
According to a survey of 3,500 staff in the UK, France, Germany, Spain, Italy and Russia by Avaya, more than two thirds (67%) think flexible workers are happier and 51% think they are more productive.
Seven out of 10 European staff think flexible workers take less time off work for personal appointments such as going to the dentist.
The key factors for employers to implement flexible working schemes were increased productivity (59%) and the desire to keep talented staff with family commitments in work (59%).
Michael Bayer, president of field operations, EMEA at Avaya, said: "It would be simplistic to suggest that flexible working is a silver bullet for European countries tackling unemployment, and the faith that so many people have in it to create jobs and boost economies is surprising.
"But I do believe the current downturn will encourage employers to think about how to adopt a smart workforce approach, using flexibility as a practical and cost-effective way of retaining talented staff who need to balance other commitments."
Employees across Europe would sacrifice part of their salary to work flexibly
Three quarters of European employees would take a pay cut in order to have a flexible working arrangement.
