I usually agree, but the implementation can have crazy side effects -- Short term thinking being the most immediately obvious. Tips are a very similar program (they % off total sales), and a tip based system has been disastrous for food service workers.
even at my own $EMPLOYER there have been issues with the stock price variability such that people have a hard time knowing what their actual income is and if they're overspending/committing. ie it's very risky to take on a fixed monthly bill like a mortgage if your income is tied to something variable.
Well there are solutions out there already for this, a base pay of x but a variable pay tied to employee performance (whatever metric they use e.g. tables waited on etc.) and a variable component tied to the company performance (profit sharing), perhaps even add an element of how long the employee worked there into this.
Make the data about what multiplier of base pay you paid out in the company performance variable component in the past few years and the upper and lower bounds of employee performance variable component and one gets the idea of how much they can make for sure and how much more they can potentially make it all goes well.
Min wage workers for hotels and restaurants other service sector employees have been in sufficient supply that those businesses have not had to consider that.
It might also be true that a lot of the products and services of those businesses simply are not valuable enough to be viable without extremely low labor costs.
even at my own $EMPLOYER there have been issues with the stock price variability such that people have a hard time knowing what their actual income is and if they're overspending/committing. ie it's very risky to take on a fixed monthly bill like a mortgage if your income is tied to something variable.