Make a Merit-Based Pay System Work for Your School

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School Heads//

November 8, 2010


For public schools in some states, the system has protected teachers with seniority. Teacher unions were established for the purpose of securing positions and salaries. But, times are changing, and in many states the first steps have been taken to merit teaching positions on excellence, not experience.

In private schools, the situation is slightly different. Since most are not unionized, they are free to base their hiring, retention, firing, and salary decisions on their school’s mission. Many private-independent schools are starting to incorporate a merit-based pay system for their faculty.

The step salary scales that many private-independent schools have adapted from public schools for their teachers build a mental “tenure” and do not encourage development and renewal. The scales don’t leave room for rewarding teachers for exceptional work. A merit-based pay system is intended to reward teachers for developing their skills rather than just doing their time.

Hiring teachers that are mission-appropriate is critical, and rewarding faculty for their dedication, enthusiasm, and positive impact on students is just as important. Schools that base salary, retention, and hiring decisions on seniority instead of proven excellence risk their viability. Teachers who are dedicated to their careers and who are eagerly open to learn new methods of engaging students will be more inclined to seek employment where their skills are valued.

For a merit-base pay system to work effectively and truly make a difference, your school needs to have a healthy faculty culture and an evaluation system that is rooted in professional development. How is your culture? If there is mistrust between faculty and administration, turf wars, negativity, and the like, then a merit-based pay system is not for your school. If your faculty culture is supportive, with teachers striving to renew and develop their skills, then it can be effective.

You also need to assess your evaluation system. Classroom observation alone does not translate into an effective system. For a merit-based system to work, evaluation must be broader, must include professional development plans designed by teachers, and must focus on each teacher’s efforts to strive and improve his/her higher-order professional/technical understanding and behaviors. These are the things that make a difference for student achievement and mission delivery. Of course, classroom observation is part of the mix. It is valid to base a merit increase on all of these factors, and not just a few classroom observations throughout the year.

You can take the temperature of your faculty culture using ISM’s Faculty Culture Profile. This quick scale-type survey will give you an idea whether or not your school is ready for a merit-based pay system.

ISM also has recently published Thinking About Merit-Based Pay? Parts One and Two as a downloadable Webinar. For more information about these two presentations, click on the highlighted links above.

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