Ernst & Young, KPMG and HM Treasury are among the founding members of a new group called the Agile Future Form (AFF) which wants to encourage the wider adoption of innovative ways of working.

The group's aim is to revolutionise traditional working practices by showing that greater agility over how, where and what employees do can provide significant financial benefits and increase competitiveness.

So far 22 companies have signed up, ranging from high street retailers, law firms and software suppliers to manufacturers. Their report, Understanding the economic benefits of workforce agility suggests that by introducing flexible working practices they are seeing benefits equivalent to 3-13% of workforce costs, with potential to increase that by a further 3% to 7% and, in some instances, sales uplift to 11%.

E&Y says it has already reduced travel costs by £500,000 this financial year, cut its carbon footprint, and is anticipating productivity improvements of between 1% to 4% amongst its flexible workers in the short to medium term.

Steve Varley, E&Y's UK chairman said: 'The traditional nine to five working day is fast becoming an outdated model. In an increasingly global economy, when you are working with clients and colleagues across borders and different time zones, agile working can provide a real competitive advantage. Here at E&Y, we've seen that that it can lead to a higher level of client service, make our people happier and more engaged, as well as save money.'