Proximity to managers has been shown to increase promotion rates. This may be caused by a perceived relationship between productivity and visibility. There can be unexplained gaps between those who work remotely and those who get onsite face time with the boss.
Productivity — and therefore performance — varies widely based on one’s environment. Employees may face difficulties related to the home environment, WiFi issues, and the presence of children. This will further decrease productivity. To prevent it, keep an eye on the impact of shifting reward and audit who gets what and why — and make sure people know about it.