Designing Strategic Compensation

Strategic Teacher

CompensationOvercoming Overcoming

the failings of the failings of pure merit pure merit

paypay

Strategic Teacher

Compensation

Doug Hering

$$ Guy

PeterHilts

¢¢ Guy

Charter School Paradoxes

Our teacher pool is larger and

smaller

Teachers earn a bigger slice...

of a smaller pie.

Necessity bred...

InnovationDesperationDifferentiation

to •Hire, •Motivate, and •Retain

excellent teachers

to •Hire, •Motivate, and •Retain

excellent teachers

First Steps

100% 100% PurePureMerit Merit PayPay

No Additives

No Preservativ

es

Pure Merit Pay Implementation

The War RoomRack & StackDifficult

Conversations

An Unexpected Flavor

UncertaintyUncertainty••

SubjectivitySubjectivity••

Special Special DealsDeals

UncertaintyUncertainty••

SubjectivitySubjectivity••

Special Special DealsDeals

A Phased Transition...

100% 100% PurePureMerit Merit PayPay ...a facilitated

processfrom merit pay to

Strategic Compensation

Phase OneScrape the Scrape the

right right windshield…windshield…with the right with the right

tool.tool.

(Design Strategically)(Design Strategically)

Wrong ToolsWrong Target

Ten Strategic Criteria

Well-DefinedRecognize Contributions

Fair Foster Loyalty

Sustainable Improve Retention

Ongoing Feedback

Reflect Market Realities

Varied Incentives

Motivate Teachers

Phase Two

≠(Differentiate Purposefully)(Differentiate Purposefully)

Strategic Compensation

“There is no greater

inequality than the equal treatment of unequals”

Felix FrankfurterU.S. Supreme Court Justice

Differentiation Model

Merit Tiers+

Market

Premium

+Loyalty

Base + %

Rack and StackWork in groups of Five—Pay Five Teachers

$200 Thousand

SubjectPerforman

ceDegree Leader? #

A. P. Physics

ExcellentBachelo

r’sNo 5

P. E. ExcellentMaster’

sYes 13

Elem. Class

Average Ph.D. No 20

HS French

LowBachelo

r’sYes 3

MS History

ExcellentBachelo

r’sYes 15

Phase Three

(Forecast with (Forecast with Foresight)Foresight)

Put Put down down the the

Magic 8-Magic 8-Ball™Ball™

Concentrate and ask

again

Future is

unclear

It is decidedl

y so

Build a Construct

1. Place current staff2. Project Movement3. Compare to existing

plan4. Shape to Reality

Phase Four

Sweat the small Sweat the small stuffstuff

(Implement with care and (Implement with care and precision)precision)

one thing leads to another…

…but it’s not that simple…

Merit-Based Tiers

1. Professional Preparation2. Instructional

Performance3. Classical Philosophy4. Extra Contributions5. Teamwork/Leadership

Market Factors

0%Elementary Classroom9th English

JH Social Sciences

9%Chemistry

AP LiteratureReading Specialist

14%AP Physics

Elementary LatinSpecial Education

20%AP Latin

Standalone Communication

Tools

Embedded Communications

Tier DescriptionsDefined database for

offers

Market Factors Added to offer letter

Guidelines for movement

Linked to the teacher evaluation system

Applied Communications

Phase Five

Keep your Keep your hand on hand on

the rudderthe rudder(Maintain course)(Maintain course)

Control Systems1.Regulate the Base2.Constrain Distribution3.Moderate Movement

Strategic CompensationIn Practice

Certainty

Predictability

Fair Deals

≠

Visual Summary

Verbal SummaryScrape the right

windshield……with the right tool

Design StrategicallyDesign Strategically

Apples are not oranges Differentiate Differentiate PurposefullyPurposefully

Put down the Magic 8-Ball

Forecast with Foresight

Sweat the small stuff Implement with care Implement with care and precisionand precision

Keep your hand on the rudder

Maintain Course

Strategic Strategic Teacher Teacher

CompensatioCompensationn

Doug Hering Ph.D., CMA

dhering@csmci.com

Peter Hiltshiltsp@asd20.org