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What advantage does an employer that pays per hour have?

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There are businesses that pay per hour. That means the number of hours a worker puts in is added together to determine their pay. Does the employer stand to gain anything by paying staff on the basis of per hour? Or does it benefit the employee only?
 
Ensuring that the employee are paid per hour often increases productivity as these employees would want to put in their best so they can be paid.
 
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