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This is the third in a series of articles we’re doing around our annual State of Workplace Productivity survey.  Read a summary of the full survey here .  And for our findings on extreme workloads, click here.

The always-on, always-working mindset has caught on, largely due to the rise of technology and the demand for more flexible workplaces. While initially introduced to boost employee satisfaction, flexible policies and technology use actually have a greater impact on productivity, and ultimately business performance.

The environment in which people work affects how productive they are. Nearly two in three employees think a flexible and remote work schedule increases productivity, according to a recent survey by Cornerstone OnDemand. The most productive work environment is an enclosed office, followed by partitioned cubicles, open desk layout and working remotely, accordingly.

While working in an enclosed office is the most promising for productivity, a good chunk of employees — 19 percent — say working remotely is the most productive environment, likely due to the fact that they can control the distractions around them. Forty-three percent of employees say impromptu visits by colleagues are distracting, according to the survey.

Digital Communication Enables Remote Workers

Even though some employees prefer work from home policies, only one in five are allowed to work remotely. True, employees can’t communicate with colleagues in-person, but the majority of workplace communication happens digitally anyway. Nearly two in five employees believe emails and instant messages allow them to be more productive than having in-person or phone conversations.

The percentage of employees that prefer in-person collaboration compared to digital collaboration is decreasing — 63 percent this year compared to 71 percent last year. But there’s a fine balance for using online communication to boost or destroy productivity. Some employees find emails, social media alerts and instant messages to be distracting, so be sure that employees know what kind of communication their colleagues prefer.

The key to high productivity and flexible work schedules is arming employees with the right technology. Almost two out of three employees agree that given the right technology, in-person meeting can be replaced completely. Digital natives are demanding a more flexible workplace, and companies are listening and changing accordingly, but more need to put their employees first and do so faster.

To read more findings from The State of Workplace Productivity Report, click here.

And take a look at our infographic on how workspace matters: