According to the survey of workplace trends by the Confederation of British Industry (CBI) and Harvey Nash, 45% of employers have increased flexible working and 24% are considering making increases.
Just over a quarter of organisations (26%) plan to transfer work overseas in response to the UK's downturn.
Training and benefits budgets have also been affected with 44% of organisations being forced to cut training spend and 46% of firms in the banking and finance sector having to restructure their employee benefits arrangements.
John Cridland, CBI deputy director-general, said: "This has been a particularly bruising recession but one of the most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs.
"While pay and recruitment freezes should disappear as the economy recovers, the spirit of flexibility and the willingness of many staff to engage positively with employers on these issues will hopefully be a more permanent benefit of the UK economy."
Employers embrace flexible working practices because of the recession, says CBI
Flexible working, extra holiday, extended shutdowns and cuts in paid overtime are becoming increasingly commonplace as a direct result of the recession.
