Blueprint Affiliate Amanda Pallais’ research on remote work, using data from a large online retailer’s software engineers, suggests that working in close proximity reduces monthly software output by 23%, particularly affecting senior engineers who engage in more mentoring when seated near colleagues. This effect is more pronounced for senior female engineers. The study also indicates that while nearness to colleagues can slow early pay raises, it enhances long-term raises through better human capital development from feedback. However, this proximity leads to a higher likelihood of employees, especially those trained near teammates, leaving for better opportunities.