A thought that's been bouncing around in my head for a while. Which is the best way to pay an employee/worker? Hourly? Compensation? When the job is finished? Installments?

I know a lot of that depends on the situation/job, but a majority of the time, the employer can decided the pay system. What do you think is the best way?

I've never worked anywhere that was compensation, though I did get tips as a bus boy (sort of compensation, though more out of my hands). Other than that, I've worked strictly hourly, minus when I fix people's computers. I felt that charging them hourly for fixing their computer would be unfair since I was working at home and I couldn't say how much time I actually dedicated to fixing it.

I feel the hourly method is overall the best. It encourages workers to show up and, as long as they're motivated by not losing their job, they'll do the work, though they may be sluggish to draw it out and make an extra hour or two. A lump sum when the job is finished is nice to move work along at a brisk pace, but it may cause a reduction in the quality if it is rushed. Compensation is nice, as it encourages the worker to do a good job, but it's largely dependent on the market (my friend works at a car dealership and while he does make a decent paycheck, if he doesn't break the sales minimum, his paycheck is hit).