Desk-bound office working is no longer appropriate for modern businesses as flexible arrangements become more popular, according to a new report.
Mobile phone giant Vodafone said firms could save hundreds of thousands of pounds a year if they simply freed up desk space and embraced flexible working.
A survey of 500 workers found that one in five believed their employers were "rooted" to the idea that staff should have their own desk space.
Most senior staff agreed they measure success by results rather than time spent in the office, but more than a third had not considered flexible working as a way of cutting costs.
Jeroen Hoencamp, enterprise director at Vodafone UK, said: "We need to get Britain working smarter and thinking about different ways of working.
"New ways of working will also bring other benefits such as improved productivity, increased efficiency and a happier workforce."