ERIC Number: ED450249
Record Type: RIE
Publication Date: 2000
Pay-for-Performance in Education: An Issue Brief for Business Leaders.
National Alliance of Business, Inc., Washington, DC.; Business Roundtable, Washington, DC.
Implementing pay-for-performance salary structures has been used successfully in business and can result in benefits for educational systems when implemented along with other compensation reforms. Business leaders can help in the implementation of teacher pay-for-performance systems in the following ways: (1) ensure that pay-for-performance plans are developed in conjunction with, rather than for, teachers; (2) emphasize the importance of using multiple, credible, and objective measures of teacher skills and student progress; (3) encourage school leaders to establish a clear system of rewards that are at least 5 to 10 percent of base salary, delivered within one year, and recognized as additional pay, not pay taken from some teachers and given to others; (4) help school leaders plan for increased costs and administrative responsibilities; (5) advise school leaders on the possible use of consultants to help implement the new system; (6) point out the importance of aligning pay-for-performance plans with overall school goals; and (7) encourage school leaders to consider pay-for-performance in conjunction with comprehensive reforms of teacher compensation as well as other organizational changes to improve teaching. Compensation systems send signals to employees about what an organization values. The current system signals that longevity and graduate credits are what schools value. There is a need for a new, much more flexible compensation system for teachers. Where credible indicators of student progress are available, pay-for-performance can contribute to this new system by rewarding teachers for student results. (Contains 11 references.) (KC)
Descriptors: Compensation (Remuneration), Educational Improvement, Elementary Secondary Education, Job Performance, Merit Pay, Merit Rating, Performance Based Assessment, Performance Contracts, Performance Factors, Rewards, School Business Relationship, Teacher Effectiveness, Teacher Improvement, Teacher Motivation, Teacher Salaries, Teaching Skills
National Alliance of Business, 1201 New York Avenue, N.W., Suite 700, Washington, DC 20005. Tel: 800-787-2848 (Toll Free). For full text: http://www.nab.com/content/educationimprovement/TeacherQuali ty/pfp.pdf.
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: National Alliance of Business, Inc., Washington, DC.; Business Roundtable, Washington, DC.