Allowing employees to work from home can be great for morale and work-life balance, but how do you tell if they're really working? AmyLynn Keimach, co-owner of Web-design firm Border7 Studios, says workers must consistently meet deadlines in the office before they're allowed to work from home. Also, the company monitors employees using chat tools such as Campfire and by asking them to send occasional screen shots of what they're working on.

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