Work-life balance
This is especially hard when an employee is in a different time zone from the majority of the team which can create a mismatch between working with the team and personal hobbies or spending time with family.
I’ve seen with people working from the US or in a different timezone that work-life balance can be hard.
Either the employees have to adjust their schedule to be closer to the schedules of their colleagues which can be hard to do with 8 hour time differences or employees have to wait longer for replies and do not get feedback when necessary which can effect work flow. Being physically in same place eases communication.