Some 92 per cent of businesses questioned said smart working – which focuses on output rather than input – can boost staff engagement and increase productivity.
Furthermore, 97 per cent said they thought the concept of smart working would become more relevant to employers in the future.
Mike Emmott, employee relations adviser at the CIPD, said: "Jobs can be designed in a way that maximises individual motivation and organisational effectiveness. Our research shows smart working holds the key."
However, he said more needs to be done to help businesses understand what smart working is, how it can benefit them and how they can implement smart working strategies.
A separate survey by the Confederation of British Industry and Pertemps revealed recently that 46 per cent of companies now offer remote working opportunities.
