Foursquare Co-Founder Dennis Crowley also emphasized the need for balance: "It is great to offer employees the flexibility that If they need to be off for a day or so, or for an afternoon, that's totally fine.

"We try to get as many people together in the office as possible because that's where stuff gets done. People hang out in the lunch room, and they hang out in the hallways and in different meeting rooms. You are more productive when people are all together, but I think you need to have a little bit of flexibility.

"We use things like Google+ Hangouts to do a lot of video conferencing at Foursquare, so we're able to make it work."We use things like Google+ Hangouts to do a lot of video conferencing at Foursquare, so we're able to make it work.

"It's a mixture of both, but not too much out of the office," he added.

David Marcus, President of PayPal, said: "This is not a black and white answer. Generally if teams are together they're definitely more efficient and more productive. But that being said, you also need to cater to moms who need to go and pick up their kids from school. And so you need to find the right balance."