Small businesses struggling to cope with the economic downturn could save money and boost productivity by allowing employees to work flexibly, according to Work Wise UK.

The body argues that implementing smarter working practices would result in lower overheads and happier and more productive employees, who would also save money under the arrangements.

"The economic downturn means organisations are trying to save money and boost productivity, which means managers are more likely to consider allowing staff to work and commute smarter," says Phil Flaxton of Work Wise UK.

"The benefits of smarter working include lower overheads for employers, more productivity, and a demonstrable commitment to the environment. But, overall, smarter working practices mean happier employees.

"Employees themselves are looking to cut the costs of commuting. Fuel price increases, rises in mortgages and the growing general costs of living means everyone is tightening their belts."

The group is urging small business owners to consider allowing staff to work flexitime - where they can pick the hours to suit other commitments - condensed hours and nine-day fortnights, which would also save employers money on wages.

Allowing people to stagger the time they arrive in the office and letting them work from home on occasion would also make the morning commute more bearable for those who do need to be in the office.

Work Wise also suggests companies encourage staff to walk or cycle to work to help reduce congestion and boost their own health and wellbeing.

National Commute Smart Week runs from October 26 to November 1, and aims to draw attention to the amount of time wasted by forcing employees to work set hours.