Teacher Compensation Practices SENATE EDUCATION COMMITTEE, MARCH 26, 2018
Key Takeaways (1) Good teachers should be paid SIGNIFICANTLY more in order to improve retention, especially at high poverty and rural schools. (2) There are reasonable processes that can be used to define exactly what "Good" and "Best" teachers are, but they aren't easy or without controversy: • Best if locally developed and involve some statewide calibration • Small, rural districts need a process managed by a third-party given capacity limitations Key Takeaways On Teacher Compensation (3) A policy framework will require a willingness to make a long term commitment via funding formulas, not one time grants. 6/22/2018 2
Our Strategic Priorities Every child, prepared for success in college, a career or the military. Strategic priorities Recruit, support, Build a foundation Connect high school Improve low- retain teachers and of reading and to career and performing schools principals math college Increase transparency, fairness and rigor in district and campus academic and financial performance Enablers Ensure compliance, effectively implement legislation and inform policymakers Strengthen organizational foundations (resource efficiency, culture, capabilities, partnerships) 6/22/2018 3
Our Strategic Priorities Every child, prepared for success in college, a career or the military. Strategic priorities Recruit, support, Build a foundation Connect high school Improve low- retain teachers and of reading and to career and performing schools principals math college Increase transparency, fairness and rigor in district and campus academic and financial performance Enablers Ensure compliance, effectively implement legislation and inform policymakers Strengthen organizational foundations (resource efficiency, culture, capabilities, partnerships) 6/22/2018 4
Recruit, Support and Retain Teachers and Principals 6/22/2018 5
Recruitment Challenges 6/22/2018 6
Country’s Best Students Remain Uninterested In a 2010 report, McKinsey & Co found : • 23% of new teachers in the US come from the top 1/3 rd of their college graduating classes. • 14% of new teachers in high poverty schools come from the top 1/3 rd of their graduating classes. vs. • 100% of new teachers come from the top 1/3 rd of their graduating classes in Singapore, Finland, and South Korea. 6/22/2018 7
Competitive Compensation A Key Factor DIFFERENCE BETWEEN TEACHING AND JOB ATTRIBUTE PREFERRED OCCUPATION 62 If I were to do well in this job, it would be rewarded financially 55 This job offers a competitive starting salary 55 This job pays appropriately for the skills and effort I would bring This job offers a salary that would increase substantially over the 53 next seven to ten years This job would allow me to work in a well resourced, professional 52 environment There are opportunities to continue to advance professionally in 52 this career 51 In this job, people get promoted when they do well 48 I could support a family with this career 48 People in this job are considered successful This job would provide high quality training and support to help 40 me imporve my performance on the job 38 This job attracts the type of people I would want to work with 38 Only top students get jobs in this field My supervisor in this job would help me improve my 35 Environment/ culture performance Jobs in this career would prepare me for almost any job I might 35 Professional development take in the future 32 Compensation This job would be challenging in a satisfying way 20 40 0 60 80% 6/22/2018 8
Retention Challenges 6/22/2018 9
Teacher Experience Teacher Experience 6/22/2018 10
Teacher Salaries Peak Late A Slower Climb It is well know that teachers earn less than doctors and lawyers. However, few realize that most doctors and lawyers make up much of the gap between their initial and peak earnings by their early 40s, while teachers’ earnings rise slowly and peak when they reach their mid-50s and are near retirement. 6/22/2018 11
Texas Compensation Strategy Examples 6/22/2018 12
Current Teacher Performance Compensation Models Dallas ISD Austin ISD Lubbock ISD Comprehensive change to teacher District-wide group & individual Offers incentives and support for teachers evaluation system impacting all teachers, performance bonuses eligible to staff and to pursue National Board Certified based on three components: teachers. Teachers. NBCT is a rigorous certification supervisor observations, student growth, process covering all teaching areas that and student survey results. takes anywhere from 12-24 months, and Group bonuses include campus-wide and NBCT teachers have been shown to have a content-area student growth. Individual positive impact on student growth. Teacher salaries are explicitly tied to bonuses awarded to teachers in core- performance appraisal, as opposed to the content areas based on growth of their years-of-service salary schedule. students. Support includes covering up front costs and cohort support for those in process. Stipends of $2k per year thereafter are High performing teachers offered High performing teachers eligible for $15k offered while the certification is additional $10k stipends to teach at of bonuses in high needs campuses vs $3k maintained, regardless of campus highest needs campuses, recruited en in other campuses. placement. masse. 6/22/2018 13
Current Teacher Performance Compensation Models Longview ISD Mathis ISD Flatonia ISD Retention stipends provided annually Implemented an innovative 3- Instituted lo ngev it y bo nuses for Op t io n 2 to staff based on years with the tiered teacher performance pay teachers and administrators that district. An “Early Notice Exit include $850 per year increases for model to highlight work of teachers Incentive” provided to teachers the first 10 years of employment and campuses that were closing transitioning to support recruitment academic gaps with the district f efforts. Pharr-San Juan-Alamo ISD Seymour ISD Era ISD Retention and longevity stipends Provides a comprehensive benefits available to all teachers. An Performance pay implemented based package to teachers that includes a “Academic Coordinator” stipend was on a teacher effectiveness rubric that 403b contribution, an HSA account, requires both observation and created to incentivize the district’s and a stipend towards gym highest performing teachers to stay student growth data. memberships. in the classroom. 6/22/2018 14
U.S. Compensation Strategy Examples 6/22/2018 15
Example from TN: Go Slow To Go Fast 2010 2011 2012 2013 2014 TDOE gathered A tota l of 16 districts 3 additional districts TN state All districts in stakeholder input piloted launched Tennessee adopted differentiated pay about how the compensation plans compensation plans policy revised differentiated state/districts could • Provided four compensation use compensation to schemes—based on intensive support increase teacher one of four models sessions to 34 effectiveness and designated by TDOE: districts equitable access • New roles for • Then moved to teachers building • Incentives for statewide support model hard-to-staff subject areas • Performance pay • New salary Used early adopters to refine the model, identify what works, and identify key conditions for success structures Source: Reform Support Network, ‘Implementing Differentiated Compensation Systems for Educators’ 6/22/2018 16
DC Impact How does IMPACTplus compare with the previous compensation system? • Under the previous contract, the starting salary was $42,369 and it took 21 years to achieve the maximum salary of $87,584. Under IMPACTplus, a Highly Effective teacher has the potential to earn $79,975 in her/his first year, and can achieve the maximum salary of $131,540 in just nine years. https://does.dc.gov/sites/default/files/dc/sites/dcps/publication/attachments/2013-2014%20IMPACTplus%20For%20Teachers.pdf Evidence from DC Impact – National Bureau of Economic Research … results indicate that dismissal threats increased the voluntary attrition of low-performing teachers by 11 percentage points (i.e., more than 50 percent) and improved the performance of teachers who remained by 0.27 of a teacher-level standard deviation. We also find evidence that financial incentives further improved the performance of high-performing teachers (effect size = 0.24). http://www.nber.org/papers/w19529 6/22/2018 17
International Compensation Strategy Examples 6/22/2018 18
Differentiated Compensation: Singapore Director General of Education Key difference between the Singapore system and historic approaches to Director Chief Specialist ‘career ladders’ in the US— a meritocratic system for determining Deputy Director performance & potential Principal Specialist Cluster Superintendent Principal Master Teacher Principal Lead Specialist Master Teacher Vice Principal Senior Specialist 2 Lead Teacher Head of Department Senior Specialist 1 Subject Head / Level Head Senior Teacher Classroom Teacher Teaching Leadership Senior Specialist Track Track Track 6/22/2018 19
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