Considering Alternative Considering Alternative Compensation Compensation

StructuresStructures

The Chalkboard ProjectThe Chalkboard Project

Mark Fermanich, APA ConsultingMark Fermanich, APA Consulting

Salem, ORSalem, OR

November 21, 2013November 21, 2013

Today’s DiscussionToday’s Discussion

Traditional and alternative salary Traditional and alternative salary schedulesschedules

Why adopt and alternative salary Why adopt and alternative salary structure?structure?

Alternative compensation Alternative compensation concepts and examplesconcepts and examples

Team exercisesTeam exercises Considerations for moving forwardConsiderations for moving forward

Teacher Compensation: Teacher Compensation: Traditional vs AlternativeTraditional vs Alternative

Traditional compensation based on Traditional compensation based on standard teachers’ single salary standard teachers’ single salary scheduleschedule Base pay starting salary established by Base pay starting salary established by

marketmarket Base pay growth determined by years of Base pay growth determined by years of

experience, attainment of additional experience, attainment of additional credits/degreescredits/degrees

Salary growth is standardized, increasing Salary growth is standardized, increasing slowly over years of service with little or slowly over years of service with little or no relationship to performanceno relationship to performance

Teacher Compensation: Teacher Compensation: Traditional vs AlternativeTraditional vs Alternative

Alternative Compensation ModelsAlternative Compensation Models Base pay starting salary established by Base pay starting salary established by

marketmarket Base pay progression determined by Base pay progression determined by

performance, career ladder steps, performance, career ladder steps, acquisition of knowledge and skillsacquisition of knowledge and skills

May include other performance or May include other performance or market driven incentivesmarket driven incentives

Rate of salary growth variable based on Rate of salary growth variable based on individual accomplishmentindividual accomplishment

Why consider an alternative Why consider an alternative salary structure?salary structure?

Single largest investment is in teacher Single largest investment is in teacher (educator) compensation – 60% to 70% of (educator) compensation – 60% to 70% of total budgettotal budget

Successfully reaching high performance Successfully reaching high performance goals requires districts to make effective goals requires districts to make effective use of these resourcesuse of these resources

Aligns investment in compensation with Aligns investment in compensation with priorities & goals of district and/or schoolpriorities & goals of district and/or school

Sends clear message of what priorities Sends clear message of what priorities and expectations areand expectations are

Why consider a Why consider a performance-based performance-based salary structure?salary structure?

Reinforces and supports goals of a Reinforces and supports goals of a HCMS:HCMS:Recruitment and retention of high-Recruitment and retention of high-quality teachersquality teachersRecognition and rewards for outstanding Recognition and rewards for outstanding teaching performanceteaching performanceStructured activities to continually Structured activities to continually improve teaching and learningimprove teaching and learningLeadership opportunities and Leadership opportunities and advancement throughout a teacher’s advancement throughout a teacher’s careercareer

Team Exercise 1Team Exercise 1

What goals do you want your compensation system to support?

How well does your current system support these goals? Can you give examples positive or

negative?

Aligning Compensation and GoalsRetain highly effective teachers 

Substantial pay increases for highly effective teachers

Attract and retain promising new teachers 

Faster initial pay progression, with performance as one criterion

Improve overall instructional quality 

Skill/expertise-based career levels

Support teacher leadership & differentiated roles 

Role-based career levels

Communicate importance of effective instruction

Source: Tony Milanowski, Westat

Meaningful increases based on measures of instructional effectiveness or influences on effectiveness

Approaches to Approaches to Alternative Alternative

Compensation SystemsCompensation SystemsModest MakeoverModest Makeover

Retain traditional single salary Retain traditional single salary schedule but supplement base pay schedule but supplement base pay with variable pay and/or stipendswith variable pay and/or stipends Expanded rolesExpanded roles Hard-to-staff schools and/or subjectsHard-to-staff schools and/or subjects National Board certificationNational Board certification Performance awards – individual and/or Performance awards – individual and/or

groupgroup

Approaches to Approaches to Alternative Alternative

Compensation SystemsCompensation SystemsModerate MakeoverModerate Makeover Revise single salary schedule by Revise single salary schedule by

reducing the number of steps and lanes reducing the number of steps and lanes (savings may be used to pay for (savings may be used to pay for incentives)incentives) Make steps contingent on performanceMake steps contingent on performance

Supplement base pay with variable pay Supplement base pay with variable pay and/or stipendsand/or stipends Expanded rolesExpanded roles Hard-to-staff schools and/or subjectsHard-to-staff schools and/or subjects National Board certificationNational Board certification Performance awards – individual and/or Performance awards – individual and/or

groupgroup

Approaches to Approaches to Alternative Alternative

Compensation SystemsCompensation SystemsHybrid makeoverHybrid makeover Based on career progressions, performance Based on career progressions, performance

categories, knowledge and skillscategories, knowledge and skills Movement between career levels based on Movement between career levels based on

performance, with a limited number of seniority performance, with a limited number of seniority steps within each career level plus limited number of steps within each career level plus limited number of education laneseducation lanes

Supplement base pay with variable pay and/or Supplement base pay with variable pay and/or stipendsstipends Expanded rolesExpanded roles Hard-to-staff schools and/or subjectsHard-to-staff schools and/or subjects National Board certificationNational Board certification Performance awards – individual and/or groupPerformance awards – individual and/or group

Approaches to Approaches to Alternative Alternative

Compensation SystemsCompensation SystemsExtreme MakeoverExtreme Makeover

Schedule based Schedule based entirely on career career progressions, performance categories, progressions, performance categories, knowledge and skillsknowledge and skills

Supplement base pay with variable pay Supplement base pay with variable pay and/or stipendsand/or stipends Expanded rolesExpanded roles Hard-to-staff schools and/or subjectsHard-to-staff schools and/or subjects National Board certificationNational Board certification Performance awards – individual and/or Performance awards – individual and/or

groupgroup

ExamplesExamples

Guilford Co., NC, Mission PossibleGuilford Co., NC, Mission Possible Washington, D.C.: IMPACTPlusWashington, D.C.: IMPACTPlus Pittsburgh, PAPittsburgh, PA Harrison SD #2, COHarrison SD #2, CO Denver, CO: ProCompDenver, CO: ProComp Baltimore, MDBaltimore, MD

Guilford Co, NCGuilford Co, NC Continues to use traditional salary schedule Continues to use traditional salary schedule

for determining base pay and base pay for determining base pay and base pay progressionprogression

Performance incentives: offers both individual Performance incentives: offers both individual and school-wide bonuses for teachers/schools and school-wide bonuses for teachers/schools achieving above average growth, range $750-achieving above average growth, range $750-$15,000$15,000

Market incentives:Market incentives: High value-added signing or transfer bonuses of High value-added signing or transfer bonuses of

$5,000 for teachers moving to Mission Possible $5,000 for teachers moving to Mission Possible schoolsschools

Hard-to-staff position incentive ranging from Hard-to-staff position incentive ranging from $2,500 to $5,000 depending on position$2,500 to $5,000 depending on position

Leadership Reward for teachers assuming school Leadership Reward for teachers assuming school leadership roles - $2,000leadership roles - $2,000

1% Salary Reward – paid to certified and classified 1% Salary Reward – paid to certified and classified staff in certain high-need, low-performing schoolsstaff in certain high-need, low-performing schools

Washington, DCWashington, DC Available to all educators who are Available to all educators who are

members of WTUmembers of WTU Based on performance on IMPACT teacher Based on performance on IMPACT teacher

evaluation and support systemevaluation and support system Combination of evaluation, student Combination of evaluation, student

achievementachievement Retains traditional salary schedule for base Retains traditional salary schedule for base

pay and progressionpay and progression Rewards high performance through Rewards high performance through

bonuses and permanent base pay increasesbonuses and permanent base pay increases

Washington, DCWashington, DC Educators who receive “Highly Educators who receive “Highly

Effective” rating receive annual Effective” rating receive annual bonus depending on a) poverty and bonus depending on a) poverty and performance levels of school and b) performance levels of school and b) if performance rating is based more if performance rating is based more than 50% on student achievement. than 50% on student achievement. For teachers:For teachers:

Washington, DCWashington, DC Educators who receive “Highly Educators who receive “Highly

Effective” rating in two or more Effective” rating in two or more consecutive years may receive a consecutive years may receive a permanent increase in base salary. permanent increase in base salary. For teachers:For teachers:

Washington, DCWashington, DC

Impact plus differentiates potential Impact plus differentiates potential bonuses and salary increases by:bonuses and salary increases by: TeachersTeachers CoachesCoaches ““Others” – comprising most support Others” – comprising most support

personnel (librarians, counselors, social personnel (librarians, counselors, social workers, speech therapists, etc.)workers, speech therapists, etc.)

Academy Step A $39,000

Pre-Tenure

Step 1 $40,000 Step 2 $41,000 Step 3 $42,000 Step 4 $43,000

Tenure

Step 5 $50,000 $55,000 Step 6 $52,000 $58,000 Step 7 $54,000 $61,000 Step 8 $56,000 $64,000 $72,000 $80,000

Additional $10,000 to $14,000

Step 9 $58,000 $67,000 $76,000 $90,00 Step 10 $60,000 $70,000 $80,000 $100,00

0 Level 1 Level 2 Level 3 Level 4

Professional Growth Level Career Ladders and

Extra Teaching Opportunities

Pittsburgh’s 2010Teacher Salary Schedule

Pittsburgh Includes multiple Career Ladder

provisions: $13,300 Clinical Resident Instructors

who serve as mentors and coaches. $12,200 Turnaround Teachers who

serve on special assignment to low performing classrooms.

$11,300 ITL2s – Instructional Teacher Leader 2 who work as subject specialists.

$9,300 Learning Environment Specialists who provide support for classroom management strategies.

Pittsburgh $9,300 Promise Readiness Corps,

teachers who work as special support teachers for students in grades 9-12.

Piloting a Voluntary Incentives Earnings at Work (VIEW) pay program that allows proven effective teachers to take on additional leadership roles and earn a $10,000-$14,000 pay differential.

Pittsburgh STAR School-Based Performance

Plan Rewards schools that fall within the

top 15% of district schools ranked by growth.

Awards equal $6,000 for each full-time professional staff, with amounts prorated for those working in the school less than full-time, and $2,000 for paraprofessionals and clerical staff.

Harrison SD #2Harrison SD #2 Is district of 10,000 students, 750 teachers, Is district of 10,000 students, 750 teachers,

high poverty/ELL populationhigh poverty/ELL population Includes teachers, special service providers and Includes teachers, special service providers and

administrators under evaluation system, but administrators under evaluation system, but administrators ineligible for compensation planadministrators ineligible for compensation plan

Based on scores from district’s Effectiveness Based on scores from district’s Effectiveness and Results Scale. Consists of 50% measures and Results Scale. Consists of 50% measures of teacher effectiveness/50% student of teacher effectiveness/50% student achievementachievement

Compensation plan initiated in 2010-11 school Compensation plan initiated in 2010-11 school yearyear

Harrison SD #2Harrison SD #2

Teacher pay based on evaluation scoreTeacher pay based on evaluation score Evaluation consists of 50% practice and Evaluation consists of 50% practice and

50% student achievement measures.50% student achievement measures. Measure of practice consists of 7 Measure of practice consists of 7

performance areasperformance areas Multiple student achievement measures Multiple student achievement measures

including growth and status, state including growth and status, state assessments, district assessments and SGOsassessments, district assessments and SGOs

Five Effectiveness Levels Salary Level (as of 2013)

Novice $35,000

Progressing I $38,000

Progressing II $40,000/$44,000

Proficient I $48,000

Proficient II $54,000

Proficient III $60,000

Exemplary I $70,000

Exemplary II $80,000

Master $90,000

Harrison School District 2 Harrison School District 2 (Colorado)(Colorado)

All teachers included under new schedule

Harrison SD #2Harrison SD #2

Teachers may not skip levels as Teachers may not skip levels as progress up scale

Teachers receive little or no pay in other forms, Teachers receive little or no pay in other forms, such as stipends for extra responsibilities. such as stipends for extra responsibilities. These are implicitly built into the salary These are implicitly built into the salary schedule. schedule.

When implemented, 80% of teachers received When implemented, 80% of teachers received base salary increase, 20% received no increase.base salary increase, 20% received no increase.

Teachers must improve performance to move Teachers must improve performance to move up both within and across performance up both within and across performance categoriescategories

If teachers fail to perform at level for 3 If teachers fail to perform at level for 3 consecutive years may move backwards on consecutive years may move backwards on schedule and receive pay cut. schedule and receive pay cut.

Denver Public SchoolsDenver Public Schools

ProComp is available to all DCTA ProComp is available to all DCTA teachersteachers

Teachers employed at time of Teachers employed at time of implementation in 2005 had option of implementation in 2005 had option of opting out and remaining on traditional opting out and remaining on traditional salary schedule.salary schedule.

All teachers hired since 2006 All teachers hired since 2006 automatically enrolled in ProComp.automatically enrolled in ProComp.

DPS citizens approved a $25 million DPS citizens approved a $25 million excess property tax levy to support plan.excess property tax levy to support plan.

Denver Public SchoolsDenver Public Schools ProComp goals:ProComp goals:

Reward and recognize teachers for meeting Reward and recognize teachers for meeting & exceeding expectations& exceeding expectations

Link compensation more closely to student Link compensation more closely to student outcomesoutcomes

Enable district to attract and retain most Enable district to attract and retain most qualified and effective teachersqualified and effective teachers

ProComp basics:ProComp basics: Base pay is the base pay index - $37,927 in Base pay is the base pay index - $37,927 in

2013-142013-14 Plus 4 pay components. Some are annually Plus 4 pay components. Some are annually

earned bonuses, others increase base payearned bonuses, others increase base pay

Denver Public SchoolsDenver Public Schools ProComp’s 4 components:ProComp’s 4 components:

Knowledge and Skills: compensates teachers for acquiring and demonstrating knowledge and skills by completing annual professional development units, or earning additional graduate degrees and national certificates. May be reimbursed up to $1,000 annually, $4,000 lifetime for tuition and repayment of student loans.

Professional Evaluation: recognizes teachers for their classroom skill by receiving salary increases every three years for satisfactory evaluations.

Denver Public SchoolsDenver Public Schools

Student Growth: rewards teachers for the academic growth of their students. They can earn compensation for meeting annual objectives, for exceeding CSAP growth goals and for working in a school judged distinguished based on academic gains and other factors.

Market Incentives: bonuses for assisting the district and schools in meeting specific needs such as hard to serve schools or hard to staff positions - assignments which historically have shortages of qualified applicants.

Baltimore Compensation based on 4 career Compensation based on 4 career

pathways:pathways:

Baltimore Teachers advance intervals (steps)

within pathways by earning a minimum of 12 Achievement Units (AUs). Interval worth about 3%

AUs earned through: Annual Professional Evaluations Approved professional development Contributions to student achievement Contributions to colleagues Contributions to school and district

AUs do not transfer when move pathways

Baltimore Teachers move across pathways by:

Standard to Professional Advance through all intervals in

Standard pathway (10 intervals) Apply to Joint Oversight Committee for

accelerated movement by completing requirements in 3 domains

1. Earn at least standard professional certification

2. Complete district induction program – New Teacher Institute

3. Complete 3 internal courses and a capstone project

Baltimore Teachers move across pathways by:

Professional to Model Requires approval by the Professional

Peer Review Committee (PPRC) based on portfolio submission on 4 criteria

1. Student achievement2. Instructional practice3. Professional growth4. Leadership Alternative process/criteria of 10 years

of service, proficient evaluation in 2 of last 3 years, review by PPRC

Baltimore Model Pathway teachers are expected to

take on additional responsibilities such as:

Mentoring new educators Coaching struggling educators Serving on the PPRC Developing and facilitating PD Opening classrooms or practice to

colleagues Serving in a school leadership position Attending ongoing model educator training Developing curriculum and assessments Supervising student teachers, practicum

students and interns Keeping documentation to support his or

her model profile

Baltimore Teachers move across pathways by:

Lead teachers Apply to PPRC in process similar to

becoming a Model Teacher Must be approved by PPRC Placed in pool, top 5 by date of entry

must be interviewed by principals Appointment reviewed every 5 years

Baltimore Salary ranges (12-13):

Standard $47,475 - $53,433 (10 intervals)

Professional $47,475 - $84,011 (15 intervals)

Model $86,617 - $92,707 (5 intervals)

Lead $94,310 - $100,806 (5 intervals)

Teachers at top of interval scale may still earn longevity increases of 1%

Designing and Designing and Implementing a Implementing a

Performance-BasedPerformance-Based Compensation System Compensation System

Capacity considerations Establishing a representative

planning group Establish:

Timeline Key tasks/decisions Modeling and data for estimating costs Project support Pilot

Capacity ConsiderationsCapacity Considerations District must assess capacity and

costs of new system: Evaluations Training in new system Professional development and other

teacher supports Assessments Data systems Pay system Administration

Key Decisions/TasksKey Decisions/Tasks What are your goals for the system? What will it cost? What can you

afford? How will educators move up/across

the schedule? What are the performance criteria? Will differentiated roles be included?

Which roles? Why? How much are salary increases for

moving up/across? Will there be steps within levels? How

much?

Key Decisions/TasksKey Decisions/Tasks Who is included/excluded from system? Will

you grandfather current educators? How will you handle educators in non-tested

grades and subjects? How will you place new educators with

experience on the new schedule? What happens to educators who fail to

maintain performance commensurate to their pay level?

How will you assess and address capacity issues

Will you pilot the new system? Be sure to evaluate annually Include process for ongoing review and

adjustment

Summarizing Key Summarizing Key Decisions/Policy ConsiderationsDecisions/Policy Considerations

Labor market conditions

Desired mix of permanent base building and variable performance pay

Quality of the

performance evaluation

system

The Ideal Salary Schedule?

Readiness for change/presence of supporting factors

Purpose for Schedule Change

Educator values about equity and

pay differentiation

Cost and ability to

pay

Source: Tony Milanwoski, Westat/TIF

Team Exercise 2Team Exercise 2 What would a new compensation system look

like that supports your district’s goals and priorities? Be as specific as you can.

How well positioned is your district to make the changes necessary to implement this new system? What are your strengths? What are some obstacles?

What are some necessary steps to prepare your district for such a change?

What are some next steps for you to take to move forward?

TakeawaysTakeaways Adopting alternative compensation

structures provides opportunities to better align your significant investment in educator compensation with district/school goals and priorities

Approaches vary depending on local context, cost, feasibility

A number of key policy issues and decisions must be addressed early on and collaboratively

Important to assess district/school capacity to plan and implement successfully