Ask Michael

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Source Newsletter for Business and Operations Header Image

Business and Operations//

September 20, 2012

Q: We have a number of faculty members who have been advocating for us to move to a merit-pay program. The Board is also encouraging us to move quickly in that direction. How long does it take to implement a merit-pay system effectively?

A: At least two years—and that is assuming that a lot of favorable conditions already exist.

First, let us commend the school for considering this direction. While we don’t believe that every school will (or should) move to merit pay, we do believe that a number of factors (including generational differences and competitive pressures) will make merit-pay systems increasingly more common in private-independent schools. That being said, however, we believe that several important prerequisites need to be in place before a successful implementation can occur. These include:

- a solid, well-accepted performance evaluation system must be in use for at least -2 years in order for merit pay decisions to be seen as credible;
- a growth-oriented faculty culture must exist, wherein all teachers are continually focused on professional development that helps them serve their students with increasing excellence (without this, merit pay has the potential to easily descend into a dysfunctionally competitive environment); and
- a strategic Board that is willing to support the tuition and development funding increases necessary to make merit pay a viable reality at the school.

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