“Hourly wage system has been a nighttime for people with significantly higher productivity”
Hourly wage has been the most commonly used type for a very long time now. Unfortunately, it is also the most unproductive or exploitative type of wage.
It is no secret that some people are capable of doing the same work much faster than others. This is not only due to others being lazy; many factors weight in. Some are just physically capable of doing something faster, others come up with innovative ways of doing the same thing much faster. People hired for a position are generally expected to perform a certain task; granted, some positions, like answering calls requires the person to be present during certain fixed hours, however, for many positions getting things done by a certain deadline is what matters. A person who can get a certain task done within an hour, but who has to stay in for 8 hours every weekday, will stay unmotivated & at certain point unhappy with her/his position, because a lot of time is being wasted. In addition, when the employer sees the employee do nothing for 7hrs, the situation can get pretty irritating between the employer & the employee, as well as other employees and in some cases the person can be let go, thus the person is being punished for higher productivity. This is a loose-loose situation; the employer looses a valuable employee and the employee is forced to let go, which is likely to force the person not to be productive or creative in the future positions. It’s completely normal for an employer to expect the employee to perform a few additional tasks when there is some extra time left, however there is a fine line between a few additional tasks & exploitation. Some employers are fast to forget their initial expectations from a person hired & the wage they were willing to pay for it, they keep piling up more work while giving nothing but empty & broken promises in return. You can call it how you like it, I call this exploitation, and it shouldn’t come as a surprise to anybody that the person is likely to quit this type of job given any available opportunity. Many employers don’t seem to get it: if you want your employees do a better quality or just more work, you need to incentify them. This benefits both parties; you as an employer pay your employee much less for the task, as opposed to hiring a new employee or a contractor, and your employee is happy to do it. If you want more sales & you know your employees can play a part in increasing your sales, an incentive like a percentage from the sales made in addition to their paycheck can go a long way. You can give 100 long speeches & do 100 other meetings to increase your sales, and the results you get will be insignificant compared to the simple incentive. As a matter of fact, very often the result from these meetings is inexistent.
Hourly wage system has been a nighttime for people with significantly higher productivity & at the same time a great system to abuse for pretend workaholics & lazy people. Pretend workaholics are very common in virtually every work environment. They always look busy & display hardworking image when the employer is present, but they do very little when they are unsupervised.
If you are a fair employer & you really need the person in the workspace during certain hours, think of using incentives. Otherwise pay per work model can be the right choice.