Eh, if you treat it as a perk for good performance, like a salary increase, bonus, or additional PTO, then I don't see the problem? Either you earn it or you don't.

I don't think it'd work like that. If anyone's underperforming should they be identified and handled through the process you'd normally follow, not by specifically retracting home-office priviledges as a punishment.

From what I've seen (anecdotally of course, a few friends) these "no more home office" orders don't tend to come as a response to any objectively measured drop in productivity, they come from CEOs and managers who benefit from being able to control things or crack the whip in-person.

Set them productivity targets and allow for WFH if they are met.

It's what's being done with junior employees anyway.