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Put Up or Shut Up

April 7, 2007

Employee pay can be one of the most effective ways to manage a workforce. A recent study shows that this may be the case with public education teachers. The current adherence to the traditional single-salary schedule strips school districts of a key managerial tool. Studies show that a more strategic use of teacher compensation could lead to both a more equitable allocation of teachers among students and increased student achievement.

It goes without saying that some teachers, based on their college quality and training, will have more competing opportunities outside of teaching than others. Currently, public schools are only recruiting a small percentage of this desirable type of teaching candidate. Also, not all teaching jobs are alike. Some schools are tougher than others. Teaching salaries should be appropriate.

Research shows that merit pay and pay for specific knowledge and skills are useful techniques for incenting teachers to perform at a higher level. Using something other than single-salary structure can also entice quality teachers to work at high-needs schools for so-called combat pay.

The trouble is that many aspects of teaching make it hard to quantify salary differentiation. “Teachers’ jobs are complex and multidimensional, and we know very little about how to objectively and accurately quantify their productivity.” Therefore, it is necessary to be cautious when implementing merit pay and incentives.

It is the challenge upon our policy makers to find wage design methods to address the shortcomings of our current system. Research shows that teacher quality is the “most important schooling factor in influencing student achievement,” but paying the most qualified candidates can be challenging in the current budget constraints. Also, the policy makers need to come up with a system to address teacher performance through demonstrated classroom performance.

Like so many other issues, when it comes to the current American education crisis, it will take innovative thinking to come up with solutions that will address the current shortcomings.

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