I pay for results, not "productivity."

I'd much rather have an employee work on personal things first then come in refreshed vs burning out and never recharging because I'm demanding their peak "productive" hours.

Every employee I've had that has medium or larger scale hobby outside of work (both in and out of domain) has been a better hire than those who don't. They attack problems differently, they're better organized, and have never complained about burnout.

However, teams that have had a string of mandatory meetings in the AM are measurably less productive in my experience. I think there's something to this.