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Then the question comes: Do they really save money, or does it just appear like they do?

Saving money on office space is money saved. People being distracted and doing poor work is money lost. I wonder how it sums up.

Money saved on office space is easily measurable and directly attributable to the bean counter responsible.

Productivity loss is hard to measure, and even when it's blatantly obvious, it's easy to shift the blame.