If it's anywhere other than on your personal machine, yes. OP was referring to NFS home directories (or otherwise home directories on servers), which I think is likely the only feasible vector to access people's "workspace files" in bulk without hacking every employee's machine individually.
Your SSH key should only exist on your desktop/laptop, never on a server. Use ssh-agent (and agent forwarding, when needed), which was designed for this.
The best approach is to use yubikeys and pkcs11 along with your ssh-agent so the private key never exists on disk at all, but at the very least, using vanilla ssh-agent is an imperative.