For something to "backfire" you first have to account for why it was done. This article assumes performance and retention are the only considerations. It does not account for things like commercial real estate value, a buesiness's ability to monitor and control its employees, or excuses for layoffs.
What do you mean by "monitor and control"? Should an employer not be able to see what their employees are doing at work? What is an "excuse" for a layoff, exactly?
There's a difference between visibility into work progress and just mass surveillance of all activity. The only metric that actually matters is the delivery of value.
Monitoring isn't an effective way to lead. It only reinforces employees to optimize for "looking busy" rather than being effective. If you have to audit your employees daily actions to know if they are doing their job, you've failed as a manager at defining their role or hiring the right people.
A good manager defines the what and the when, and leaves the how to the professional being paid to do it.