The latest CBI/Pertemps Employment Trends survey shows the number of people working from home has risen from 11% in 2004 to 46% this year.
Nearly all employers (93%) offer one form of flexible working and 57% offer three or more. In addition, 95% of parents who requested flexible working were granted it.
John Cridland, CBI director general, said: "The boundaries of the traditional nine-to-five in the office or on the shop floor are becoming more and more blurred. Employers are embracing the benefits of flexible working, even as the economy heads into more uncertain times."
Employers are also embracing flexible retirement methods with 81% of staff who asked to have their retirement postponed being granted it.
However, almost two thirds (64%) said that "cumbersome" employment regulations have endangered market flexibility.
Cridland said: "Right now the government needs to recognise businesses are at the limit of what they can absorb. If employers aren't given space from workplace legislation then jobs will be put at risk."
More than half of employers (59%) said the biggest hurdle to diversity is the lack of applicants from disadvantaged groups, however eight out of ten employers have workplace diversity structures in place.
Equality levels are also improving with a quarter taking positive action to improve equality at work and 55% conducting an equal pay audit. This exceeds the Government's target of 45%. The CBI also reports that the gender pay gap is continuing to fall.
Flexible working thrives despite "cumbersome" regulation

Employers are offering more work flexibility than ever before.