By: Jessica Baker, Michael Berner, Cheryl Cresci, and Dina
Vigliotta
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Merit pay and pay for performance are often used
interchangeably. They are labels applied to pay systems that
include a range of componentsthere is no single definition. The pay
systems usually include evaluation as one component, and, today,
there is growing pressure to include standardized test scores as a
measure of teacher performance. (NEA, 2011) Merit pay for teachers
is a system of compensation in which teachers who are better at
their jobs (meaning they are more effective) are rewarded with
higher compensation, although other forms of differentiated pay
often are included. There are two basic systems: (1) those that
reward teachers for what they do, and (2) those which reward
teachers for what their students do. Many performance pay systems
combine both these elements. (NEA, 2011)
http://www.weac.org/pdf/2011-12/merit.pdf
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The Issue: Most public school teachers are paid today under a
system that is close to 90 years old and involves allowing teachers
to earn salary increases through experience and additional
coursework. There is a pay for performance movement that would
allow teacher salaries to be linked to how well a teacher does
his/her job--especially by how well their students do on
standardized tests and on their evaluations. - Valerie Strauss, The
Washington Post
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Contractual salary schedules for teachers are a nearly
universal feature of American K12 public school districts. Data
from national surveys show that close to 100 percent of traditional
public school teachers are employed in school districts that make
use of contractual salary schedules in pay setting (Podgursky,
2007). Thus, roughly 3.1 million public school teachers from
kindergarten through secondary level are paid largely on the basis
of years of experience and education level. These two variables,
researchers suggest, are weakly correlated, at best, with student
outcomes (Hanushek, 2003).
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The single salary schedule contrasts with pay determination
practices in the majority of white collar professions, where
performance-related pay programs are commonplace. Most private
sector employees are given two types of pay: 1. Base pay-
represents a foundation or floor on pay, which is guaranteed (or at
low risk) and typically paid as a salary, hourly, or piece rate
wage. 2. Variable pay- is riskier and is associated with the bonus
or performance pay system. Variable pay is compensation that is
contingent on discretion, performance, or results that comes in the
form of an individual bonus, a group bonus, or some combination of
the two.
Slide 6
Merit-based pay programs date back to Great Britain in the
early 1700s! Similar ideas formed around the notion of performance
contracting in the late 1960s (Stucker & Hall, 1971) In the
late 1960s, President Nixon introduced performance contracting,
which offered incentives to private firms to improve student
achievement. By the early 1970s, over 150 school districts
contracted with companies to deliver instruction, as the Nixon
Administration initiated a vast privatization experiment in Texas
and Arkansas. None of these performance contracting experiments
significantly improved instruction. After charges of corruption,
teaching to the test, and a lack of results, the program was
abandoned and the single salary schedule continued to dominate
school districts throughout the U.S. (NEA, 2011)
Slide 7
It was not until the release of the A Nation at Risk report in
1983 that a significant number of public school districts in the
United States began considering merit-based pay as an alternative
or supplement to the single salary schedule. A Nation at Risk, a
Reagan Era critique that blamed the nations economic downturn on
poor schooling, recommended increased pay for teachers and pay for
performance as two strategies to improve the nations system of
education. (NEA, 2011) Professionally competitive,
market-sensitive, and performance- based (A Nation At Risk:
Recommendations, 1983). One goal of this recommendation was to tie
compensation more directly to classroom skill. Merit pay has been
used as an attempt to rectify the failings of the single-salary pay
schedule, including the frustration that all teachers with the same
educational level and experience are paid equally, despite
potentially unequal performance and skills.
Slide 8
Today, pay for performance or merit pay is a national trend,
pushed by the federal government which, in 2008, established funds
for incentives, including the use of test scores. Cities from
Minneapolis to Denver, Toledo, Chicago, New York and San Antonio
adopted performance pay systems. By 2008, Alaska, Arizona,
Arkansas, Florida, Minnesota, North Carolina and Texas had systems
that base teacher pay in part on performance. Other states are
currently considering such legislation. Merit-based pay rewards
individual teachers, groups of teachers, or schools on any number
of factors, including student performance, classroom observations,
and teacher portfolios. Merit-based pay is a reward system that
hinges on student outcomes attributed to a particular teacher or
group of teachers rather than on inputs such as skills or
knowledgea critical distinction that is emphasized later in this
review. (NEA, 2011)
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Prior Teachers St udent Mobility Family life
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Middle school math teachers were offered bonuses if students
performed well on state test. Control group comparison Over the
course of the three year study, students did not progress any
faster in classrooms where teachers were offered bonuses. Source:
http://www.nj.com/news/index.ssf/2010/09/merit_pay_for_teachers_who_imp.htmlhttp://www.nj.com/news/index.ssf/2010/09/merit_pay_for_teachers_who_imp.html
Slide 28
Elementary school teachers were offered bonuses if students
performed well on state test. Administrators and other teachers
were also rewarded if the school improved overall. Control group
comparison After two years students achieved average gains of
approximately seven percentile points and the control schools
showed a decline in scores. Source:
http://www.ascd.org/publications/educational-leadership/oct08/vol66/num02/When-Merit-Pay-Is-Worth-Pursuing.aspxhttp://www.ascd.org/publications/educational-leadership/oct08/vol66/num02/When-Merit-Pay-Is-Worth-Pursuing.aspx
Slide 29
TAP (The System for Teacher and Student Advancement) is a
well-funded nationwide program. Offers performance-pay incentives,
but also has intensive professional development, 4-6 observations a
year, opportunities for career advancement, ongoing support and
mentoring for teachers and students, and so on. Lets take a look at
their results.do you notice anything interesting (math
teachers)?
It is difficult to evaluate due to numerous outside factors.
Most research is based on a single test score result. Cannot
directly prove if student achievement increases because of merit
pay alone. Difficult to compare studies due to different
populations, resources, etc.
Slide 32
Research shows that the presence of a high-quality teacher
improves student performance. Performance pay decreases intrinsic
motivation of teachers.
Slide 33
Depends on funding source. Requires short and long term
financial planning. Costs need to be identified, projected, and a
plan for maintaining the funds needs to be laid out. Lots of
anticipation! Change in teaching force. Change in the number of
students. Supplemental resources. Other funding sources.
Slide 34
EXPENSIVE! Who is receiving merit pay? Math/ELA v. All teachers
v. All staff How much does each teacher or administrator get? Scale
Percent How long?
Slide 35
Schools have several different ways of funding merit pay.
Grants Private Corporations District (community) State Federal
Teacher Incentive Plan Delaware