What is the type of pay structure where employees are compensated based on the hours they work?

Hourly pay is a compensation structure specifically designed for employees who receive payment based on the actual hours they work. This type of pay allows for greater flexibility in labor and is common in roles where the amount of work can vary significantly from week to week or month to month. Employees earning hourly pay typically track their hours, and their total earnings for a given pay period fluctuate according to their hours worked multiplied by their hourly wage. This pay structure is particularly beneficial for both employers and employees as it allows for the adjustment of labor costs based on workload needs and provides workers with the potential to earn more through overtime or additional hours worked, directly reflecting their time commitment.