Are You Rewarding Productivity or Proximity?

Are You Rewarding Productivity or Proximity?

In a post-pandemic world where hybrid and remote work have become the norm rather than the exception, organizations face a pivotal question: Are we rewarding true productivity or simply rewarding those who are physically present?

The traditional workplace was built on proximity. Employees who came in early, stayed late, and were visible to their managers were often perceived as more committed or productive. This phenomenon, known as "proximity bias", has long influenced promotion decisions, performance evaluations, and workplace dynamics. But in a digitally enabled, global workforce, proximity no longer guarantees performance—and it shouldn’t.

What Is Proximity Bias?

Proximity bias refers to the unconscious tendency to favor employees who are physically closer to decision-makers, typically in the same office or location. It’s the idea that being “seen” means being productive or valuable.

A report by Envoy found that nearly 42% of executives believe in-office workers are more likely to be considered high performers. However, this assumption is being challenged by the evolving nature of work, which now often spans time zones, geographies, and flexible schedules.

Why Productivity Should Trump Proximity

1. Remote Work Has Proven Results

During the pandemic, many organizations were forced into remote setups—and the results were surprising. A 2021 Stanford study showed a 13% increase in productivity among remote workers. Contrary to fears of slacking off, many remote employees reported improved focus, fewer interruptions, and better work-life balance—all of which contribute to output.

So why are some organizations still holding on to outdated assumptions tied to physical presence?

2. The Global Talent Pool Advantage

Focusing solely on local, in-office talent limits the potential of your workforce. By prioritizing productivity over proximity, businesses unlock access to a global pool of high-quality professionals who may be more skilled, more cost-effective, or more aligned with your values—even if they’re not geographically close.

Consider the tech industry: companies like GitLab, Automattic, and Zapier have embraced fully remote teams and scaled globally without a centralized office. Their success proves that value isn’t bound by location, but by results.

Quality resources aren’t always in your postcode. Productivity doesn’t need a badge scan to be measured.

When Proximity Still Matters

That’s not to say proximity is irrelevant. For roles requiring physical presence (e.g., manufacturing, healthcare, retail), or where real-time collaboration and rapid iteration are key, being together in the same space can enhance innovation and speed.

Additionally, junior employees or new hires may benefit from in-person mentoring and cultural immersion, helping them build networks and confidence. But even in these cases, proximity should support productivity—not replace it as a performance metric.

How to Shift from Proximity to Productivity: A Leadership Playbook

1. Redefine Performance Metrics

Move from time-based inputs (hours at a desk) to outcome-based outputs (deliverables completed, goals met, problems solved). Tools like OKRs (Objectives and Key Results) and KPIs can provide clearer insight into what employees are actually contributing.

2. Invest in Asynchronous Collaboration

Platforms like Notion, Slack, Microsoft Teams, and Loom allow teams to work effectively across time zones. Creating a culture that supports async work reduces dependency on "live" presence and increases inclusivity.

If someone completes their work at 6am while another starts at 11am, does it matter—as long as results are met?

3. Train Managers to Manage Outcomes, Not Attendance

Traditional managers often equate visibility with accountability. Upskilling them to evaluate based on data, documentation, and impact ensures they aren’t biased by who they see most often. Tools like 15Five and Lattice can help capture ongoing performance and engagement data.

4. Communicate Equity in Opportunities

Make it clear that remote employees have equal access to promotions, stretch assignments, and recognition. This isn’t just good practice—it’s essential for retaining talent and building trust.

According to a McKinsey report, employees who feel they’re overlooked in hybrid setups are more likely to disengage or leave.

5. Use Technology to Build Visibility Without Bias

Dashboards, project management tools, and digital check-ins make everyone’s work visible—without requiring everyone to be in the same room. Leaders can review performance consistently and transparently, focusing on contribution instead of location.

Case in Point: The Hybrid Trap

Imagine two employees:

• Sara, who comes into the office three times a week, attends all meetings in person, chats with leadership in the hallway—but delivers average results.

• Raj, who works remotely from another city, rarely seen in person, communicates effectively via Slack and delivers stellar results ahead of time.

Who should be promoted?

If you’re rewarding proximity, Sara wins. But if you value productivity, Raj deserves recognition. The hybrid work model must not fall into the trap of glorifying occasional office attendance over consistent high performance.

Balancing Human Connection with Output

Work isn’t purely transactional. Culture, connection, and collaboration still matter. However, organizations must evolve to foster those values across formats—virtual team-building, intentional off-sites, and regular touchpoints can maintain the human element without enforcing outdated 9-to-5, office-centric rules.

Conclusion: The Future Belongs to Outcome-Oriented Organizations

Leaders today must ask: Are we building organizations for visibility or for value?

If performance reviews, promotions, or praise are subtly skewed toward those “seen” in the office, then the system is outdated. Productivity has outgrown geography. The best organizations will be those that recognize—and reward—results, not just physical presence.

So here’s the real question to take to your next leadership meeting:

Are you building a culture that values presence in the room—or presence in the results?