I don't think so.  I don't have employees, but I have set up many of my clients to have their employees work from home.  Obviously, there are distractions at home, but there is socialization in the office that people don't tend to notice.  It really depends on the person.  People who are able to compartmentalize their attention will be able to work from any environment.  People who can't will need to be watched closer.  Many companies have metrics for productivity, the number of orders entered, the number of support calls handled, etc.  If those numbers stay within the normal range, then you're fine.