At a busy Lagos office one rainy Tuesday, a small business owner, Tunde, sat staring at the payroll for his team. His company, a digital marketing agency, was barely breaking even. Yet, every month, salaries were paid on time, expenses settled, and bonuses considered. But one question nagged at him: “Am I getting what I’m paying for?”
The Time Trap
A farmer doesn’t pay their workers for standing idly in the field. Instead, they pay for how many bags of crops are harvested.
Tunde’s frustration isn’t unique. Many Nigerian business owners know the feeling of watching costs pile up without seeing a corresponding rise in productivity or growth. It’s not about people being lazy—it’s about how the traditional 9-to-5 model doesn’t always align with real work output.
Let’s face it: not all work hours are created equal. For some, the day kicks off with energy and focus. For others, peak productivity might come after lunch or in the quiet hours of the evening. But under the typical work structure, businesses pay for all eight hours—whether they’re productive or not.
A Farmer’s Lesson in Efficiency
Think of it this way: A farmer doesn’t pay their workers for standing idly in the field. Instead, they pay for how many bags of crops are harvested. It’s not about micromanaging—it’s about making sure that every naira spent contributes to progress.
Now, imagine this same principle applied to modern businesses. What if you could pay for work done, rather than the hours spent sitting in front of a screen?
The Cost of Idle Time
Paying per productive hour shifts the focus from “time spent” to “value created.”
Here’s a startling truth: Research suggests that the average employee is actively productive for only about 3 hours out of an 8-hour workday. This isn’t just a global statistic; many Nigerian businesses have witnessed the same pattern. This reality adds up to significant waste—paying for time that doesn’t directly contribute to your business goals.
Take Blessing, who runs a boutique social media agency in Abuja. By the time her team clocked out each day, she often felt unsure if the hours worked had matched the results delivered. She wasn’t looking for miracles—just efficiency. But how do you measure that in a world where contracts are tied to hours, not outcomes?
Paying for What Matters: Output Over Time
Enter the concept of the productive hour. Paying per productive hour shifts the focus from “time spent” to “value created.” It’s about understanding that:
- A great graphic designer could finish a logo in 2 hours instead of dragging it across 8.
- A skilled content writer might knock out a compelling article in half the time it takes someone else.
By aligning payments to productivity, businesses foster accountability and efficiency.
A Different Kind of Hiring Story
Let’s revisit Tunde. A friend introduced him to a new model: hiring freelancers and professionals who charge by the hour—but only for the hours they actually worked on deliverables. Curious but skeptical, Tunde decided to try this with a social media manager.
The result? He paid less overall but saw better results. Why? Because every hour logged was an hour spent delivering value. No downtime, no unnecessary meetings, just clear outcomes.
A Shift in Mindset for Nigerian Businesses
In Nigeria, where small businesses often operate on razor-thin margins, this model can be revolutionary. It’s not about undervaluing talent—it’s about ensuring that both the employer and the employee focus on what truly matters: results.
Imagine the ripple effects if every business owner adopted this approach:
- Smarter Budgets: Resources are allocated to high-impact activities.
- Happier Workers: Talented professionals get paid fairly for their skills, without feeling chained to the clock.
- Sustainable Growth: Businesses save money and reinvest in areas that matter most.
The Takeaway
Tunde’s experiment isn’t just an isolated success story. Across industries, the pay-for-output model is gaining traction because it makes sense. Whether you’re running a tech startup in Yaba, a fashion house in Surulere, or an event-planning business in Port Harcourt, the question remains:
How much money could you save if you paid for productive hours, not idle time?
This isn’t just about cutting costs. It’s about being intentional, efficient, and prepared for a future where every naira spent directly impacts your bottom line. Because in the end, it’s not about how long someone works—it’s about what they achieve during that time.
So, the next time you’re staring at your payroll, wondering where all the money is going, remember Tunde’s story. Ask yourself: Am I paying for value or just time?
The answer could transform your business.
