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Workers who are given a spacious and open office environment with modern technology are more productive than those working in cramped conditions.

According to research by The Mind Lab, "free range" workers are more productive and happier than "battery" office staff. IQs were found to increase by 28 per cent in an open working space with a 33 per cent rise in short-term memory.

Furthermore, it revealed, employees in better conditions were 50 per cent less stressed than those cooped up together with antiquated technology.

Dr David Lewis, a neuro-psychologist and research director at The Mind Lab, commented: "On every measure, from memory to IQ to the speed with which new information was processed, the 'battery office' produced a marked decrease in intellectual performance combined with a sharp increase in stress levels."

He added that "restrictive" conditions in the office were not only detrimental to employee well-being but could harm the company.

Hewlett-Packard, which sponsored the study by the Mind Lab, released further findings that show the benefits of flexible working to staff happiness.

Of the 800 people asked, nearly half said they are more motivated and productive when working from home, with around a third saying that office work "stresses them out".

Graduates currently looking to enter the job market may be interested to investigate potential employers' policies on office conditions and flexible working hours.

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