Although most school districts continue to use traditional teacher compensation systems, a growing minority of districts have adopted performance-based compensation systems. In the 2015-2016 school year, 6.2% of teachers surveyed by the National Center for Education Statistics (NCES) reported that they would earn additional compensation based upon student performance. This is an increase from only 4.4% in 2011-2012.
This report assesses the components of performance-based compensation systems used by six profiled school districts. Our researchers also identify important considerations for developing and operating these non-traditional compensation systems.
Modified steps-and-lanes systemsA modified steps-and-lanes system alters a traditional salary schedule to incorporate some performance-based criteria.
With the assistance of the National Education Association, administrators at District A re-designed a traditional steps-and-lanes compensation model by replacing educational attainment salary lanes with lanes set by achieving specific professional development goals. This new model encourages teachers to spend more time on district-approved professional development.
Teachers in District A may advance one salary lane by completing 225 salary contact hours of professional development. Moving to the next salary lane provides teachers with a salary increase and greater future earning potential. This incentivizes teachers to complete professional development courses.
Compensation model components at District ABase pay
Administrators initially set new teacher salaries according to experience and educational attainment Teachers receive annual step increases in salary similar to those of a traditional steps-and-lanes schedule Teachers may advance a salary lane once every four years by completing 225 salary contact hours of professional developmentStipends
The district pays experienced teachers $1,800 to develop and teach professional development courses in areas of high need and interest…