A short, opinionated YouTube segment by Mike Andes arguing that paying employees by the hour creates perverse incentives to waste time (naps, many smoke breaks, unnecessary stops). The speaker proposes paying workers a percentage of the job value (piece-rate or percentage-based pay) to incentivize faster, more efficient work and reduce time-wasting behaviors.
Look, it's your fault if you're paying your employees and they're not doing the work. If they're taking a nap, taking 50 smoke breaks, and stopped at the gas station a hundred times, that's your fault. You're compensating them based upon how long they take to do the job by the hour. They are incentivized. The longer the job takes, the more money they make versus just pay them a percentage of the job value and they'll do the job faster and they won't want to go to the gas station 100 times and they'll pack a lunch when they come to work and they'll get out of the shop within a matter of a couple minutes instead of lollygagging for the next 30 minutes with their coffee in hand.
