March 10, 2011

Restructuring Teacher Pay in Tough Times

A new report from the National Council on Teacher Quality (NCTQ) argues that difficult economic times provide opportunities for school districts to restructure teacher pay systems to place the best teachers where they are most needed and improve student achievement.

Many studies have shown that teachers’ degree status has little or no effect on student achievement. NCTQ recommends that districts redistribute pay increases teachers currently receive for additional post-baccalaureate coursework and advanced degrees to give younger teachers bigger raises and award meaningful bonuses to highly effective teachers.

Teachers often receive their largest pay raises near end of their careers, despite research showing that most growth in teachers’ effectiveness occurs in their first three years in the profession. NCTQ instead recommends awarding significant pay raises when a teacher achieves tenure, providing an incentive to stay in the classroom when teacher turnover is highest and many teachers leave the profession.

Finally, NCTQ recommends shorter overall teacher salary schedules to allow teachers to reach maximum pay sooner. Increasing teachers’ maximum lifetime earnings would give mid-career teachers an incentive to remain in the classroom, the report argues.