Benjamin Brooks, in a post titled "Working From Home":
As much as we cling to the romantic notion of not being tethered to any one location for work — I think the reality of being there at any moment for my family is far more compelling than those Swiss Alps. It’s a constant reminder for many of us that we get the best of both worlds: to have an amazing career, and to see our kids whenever we want — and yes, occasionally when we would rather them not barge in to ask where their My Little Pony books are.
If, as a company, you feel like you can't trust your employees to work remotely and be productive, that sounds like your problem, not theirs.
The advantages of co-location are severely overstated—it is Agile cargo-cultism—and demanding your employees sacrifice their personal and family life for their jobs is a guaranteed recipe for burn-out and disengagement.