But, considering that no company does this, it looks like this isn't a good idea for employers. Why? Why do companies try to squeeze all the possible juice from

But, considering that no company does this, it looks like this isn't a good idea for employers. Why? Why do companies try to squeeze all the possible juice from employees instead of the alternative where they pay a little less, require a little less, and the employee becomes much more happy? Tarsnap does this. My employee (yes, just one so far) submits semimonthly timesheets, and he gets paid for however many hours he worked. He likes the flexibility, and I know that I'm getting a good deal because productivity is correlated with motivation -- the hours when he feels like working are the hours when he'll get the most done.