YouTube video commentary by Mike Andes arguing that hourly pay (dollars per hour) is a failing model for labor. The speaker advocates for a performance-based pay (P4P) system—paying a percentage of revenue generated daily—to incentivize efficiency, quality, and greater earnings for productive workers. Example: 33% P4P on $600 revenue yields $200 wages regardless of hours worked.
The most common form of payment in the labor industry is dollars per hour. Honestly, I think it's a failing formula. It's bad for the business, bad for the owner, and bad for the employee. I'd much rather get paid for performance or P4P. This means that I get a percentage of the revenue that I earn for the business every single day. So it doesn't mean that if whoever just knows the boss the most, went out to drink with them on the weekend or asks for a raise makes more money. Rather, it's strictly based upon who actually performs and does the most amount of work. Harder you work the the more money you make. So if I earn the business $600 in revenue for the day and I'm getting 33% of that on P4P, that means that I'm going to earn $200 in wages. And if I can do that in four or five hours, great. I'm still going to make $200. This is what incentivizes efficiency, quality of work, and someone thinking outside the box, not just sapping the clock.
