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Strategic Teacher Compensation Overcoming Overcoming the the failings of failings of pure merit pure merit pay pay

Designing Strategic Compensation

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From single-schedule step-and-lane through pure merit pay, to strategic compensation—teacher pay is evolving and improving. This presentation outlines a process for implementing and sustaining a strategic compensation system for your school.

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Page 1: Designing Strategic Compensation

Strategic Teacher

CompensationOvercoming Overcoming

the failings of the failings of pure merit pure merit

paypay

Page 2: Designing Strategic Compensation

Strategic Teacher

Compensation

Doug Hering

$$ Guy

PeterHilts

¢¢ Guy

Page 3: Designing Strategic Compensation

Charter School Paradoxes

Our teacher pool is larger and

smaller

Teachers earn a bigger slice...

of a smaller pie.

Page 4: Designing Strategic Compensation

Necessity bred...

InnovationDesperationDifferentiation

to •Hire, •Motivate, and •Retain

excellent teachers

to •Hire, •Motivate, and •Retain

excellent teachers

Page 5: Designing Strategic Compensation

First Steps

100% 100% PurePureMerit Merit PayPay

No Additives

No Preservativ

es

Page 6: Designing Strategic Compensation

Pure Merit Pay Implementation

The War RoomRack & StackDifficult

Conversations

Page 7: Designing Strategic Compensation

An Unexpected Flavor

UncertaintyUncertainty••

SubjectivitySubjectivity••

Special Special DealsDeals

UncertaintyUncertainty••

SubjectivitySubjectivity••

Special Special DealsDeals

Page 8: Designing Strategic Compensation

A Phased Transition...

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

processfrom merit pay to

Strategic Compensation

Page 9: Designing Strategic Compensation

Phase OneScrape the Scrape the

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

tool.tool.

(Design Strategically)(Design Strategically)

Page 10: Designing Strategic Compensation

Wrong ToolsWrong Target

Page 11: Designing Strategic Compensation

Ten Strategic Criteria

Well-DefinedRecognize Contributions

Fair Foster Loyalty

Sustainable Improve Retention

Ongoing Feedback

Reflect Market Realities

Varied Incentives

Motivate Teachers

Page 12: Designing Strategic Compensation

Phase Two

≠(Differentiate Purposefully)(Differentiate Purposefully)

Page 13: Designing Strategic Compensation

Strategic Compensation

“There is no greater

inequality than the equal treatment of unequals”

Felix FrankfurterU.S. Supreme Court Justice

Page 14: Designing Strategic Compensation

Differentiation Model

Merit Tiers+

Market

Premium

+Loyalty

Base + %

Page 15: Designing Strategic Compensation

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

Page 16: Designing Strategic Compensation

Phase Three

(Forecast with (Forecast with Foresight)Foresight)

Put Put down down the the

Magic 8-Magic 8-Ball™Ball™

Page 17: Designing Strategic Compensation

Concentrate and ask

again

Page 18: Designing Strategic Compensation

Future is

unclear

Page 19: Designing Strategic Compensation

It is decidedl

y so

Page 20: Designing Strategic Compensation

Build a Construct

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

plan4. Shape to Reality

Page 21: Designing Strategic Compensation
Page 22: Designing Strategic Compensation
Page 23: Designing Strategic Compensation

Phase Four

Sweat the small Sweat the small stuffstuff

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

Page 24: Designing Strategic Compensation

one thing leads to another…

Page 25: Designing Strategic Compensation

…but it’s not that simple…

Page 26: Designing Strategic Compensation

Merit-Based Tiers

1. Professional Preparation2. Instructional

Performance3. Classical Philosophy4. Extra Contributions5. Teamwork/Leadership

Page 27: Designing Strategic Compensation

Market Factors

0%Elementary Classroom9th English

JH Social Sciences

9%Chemistry

AP LiteratureReading Specialist

14%AP Physics

Elementary LatinSpecial Education

20%AP Latin

Page 28: Designing Strategic Compensation

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

Page 29: Designing Strategic Compensation

Phase Five

Keep your Keep your hand on hand on

the rudderthe rudder(Maintain course)(Maintain course)

Page 30: Designing Strategic Compensation

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

Page 31: Designing Strategic Compensation

Strategic CompensationIn Practice

Certainty

Predictability

Fair Deals

Page 32: Designing Strategic Compensation

Visual Summary

Page 33: Designing Strategic Compensation

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

Page 34: Designing Strategic Compensation

Strategic Strategic Teacher Teacher

CompensatioCompensationn

Doug Hering Ph.D., CMA

[email protected]

Peter [email protected]