What Are Performance-Based Pay Plans in Schools?

History

• According to the Milken Family Foundation, performance-based pay plans have been attempted for years. The foundation sites examples from London as early as 1710 and Canada in 1876. The idea cropped up in the United States in 1969, and has since been periodically attempted in generally short-lived bursts. In fact, according to a Cornell University study on the subject, most performance-based pay plans have had a lifespan of five years or less.

Method of Pay

• There have been several variations of performance-based pay plans attempted in public school systems, but most come down to a bonus paid to the teachers of students with higher test scores. Under this plan a teacher would have a typically lower base salary but would be given compensation either on a class-wide average test basis or a per-student performance basis. Another variation of the performance-based plan rewards groups of teachers for school-wide or district-wide test scores, though individual performance-based plans are much more common.

Pros

• Performance-based pay plans for teachers is a highly controversial topic. Proponents of the plan claim that giving an incentive to teachers for higher test scores will give them a reason to work harder and give students the extra help they may need. They claim that it encourages teachers to continue looking for new and effective ways to teach students. They also say that rewarding teachers for results as opposed to the more traditional tenure-based system is more fair.

Cons

• Detractors claim that teachers would be less interested in teaching subject material and more interested in teaching test-taking ability and memorization. Those opposed to the plan say that simply using standardized test scores does not take into account all the aspects of a teacher's job, that evaluating teacher performance is not an exact science. There has also been no hard evidence of these types of plans ever improving teacher performance. Rather, some say it simply gives teachers bonuses for working in more affluent districts where the budget is higher and there is more parent involvement.