Do hourly employees make sense any more?

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We have had many discussions around here about the changing nature of the work-life balance -- especially with laptops, wireless connections and mobile devices, the "work" part is creeping more and more into the "life" pat. That's partly why we think companies should be lot more understanding about when the "life" part creeps into the "work" pat (meaning no longer freaking out if someone happens to buy something online or visit a social network while they're "working"). It would seem that a far more effective measure of work should be whether or not you get the work you need to get done, done -- rather than how many hours you worked. There certainly may be some cases where hourly workers make sense, but in many situations where it's commonly used today, it's difficult to see why hourly wages are still the nor, over a full salary.