But just half of managers encourage flexible working, which means more than a third say they sacrifice sleep to fit in work and personal commitments, the study by office space firm Regus found.
Steve Purdy, managing director of Regus, said working closer to home helps make employees more productive and loyal to a company.
Mr Purdy said: "There is growing recognition that working closer to home - rather than at home - is often the best way to improve wellbeing and remain productive.
"In fact, one of the main reasons people use our centres today is to bridge this gap between between the traditional office and the home office."
The research comes at the start of Work Wise Week from May 12 to 18, with this Friday being "National Work From Home Day".
The week aims to encourage people to work remotely, even in coffee shops, and have more "virtual meetings" rather than travelling to the office.
Half of the 3,000 people working in the UK who were surveyed said they would be happier and more productive if they could work in different locations depending on what they were doing.
Just under three-quarters said their manager is likely to view people who arrive early and leave late as the most hard-working.