Designing Strategic Compensation


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From single-schedule step-and-lane through pure merit pay, to strategic compensation—teacher pay is evolving and improving. This presentation outlines a process for implementing and sustaining a strategic compensation system for your school.

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Designing Strategic Compensation

  1. 1. Strategic Teacher Compensation <ul><li>Overcoming the failings of pure merit pay </li></ul>
  2. 2. Strategic Teacher Compensation Doug Hering $$ Guy Peter Hilts ¢¢ Guy
  3. 3. Charter School Paradoxes <ul><li>Our teacher pool is larger and smaller </li></ul>Teachers earn a bigger slice... of a smaller pie.
  4. 4. Necessity bred... Innovation Desperation Differentiation to • Hire , • Motivate , and • Retain excellent teachers
  5. 5. First Steps 100% Pure Merit Pay No Additives No Preservatives
  6. 6. Pure Merit Pay Implementation The War Room Rack & Stack Difficult Conversations
  7. 7. An Unexpected Flavor Uncertainty • Subjectivity • Special Deals
  8. 8. A Phased Transition... 100% Pure Merit Pay ...a facilitated process from merit pay to Strategic Compensation
  9. 9. Phase One Scrape the right windshield…with the right tool. (Design Strategically)
  10. 10. Wrong Tools Wrong Target
  11. 11. Ten Strategic Criteria Well-Defined Recognize Contributions Fair Foster Loyalty Sustainable Improve Retention Ongoing Feedback Reflect Market Realities Varied Incentives Motivate Teachers
  12. 12. Phase Two ≠ (Differentiate Purposefully)
  13. 13. Strategic Compensation “ There is no greater inequality than the equal treatment of unequals” Felix Frankfurter U.S. Supreme Court Justice
  14. 14. Differentiation Model Merit Tiers + Market Premium + Loyalty Base + %
  15. 15. Rack and Stack Work in groups of Five—Pay Five Teachers $200 Thousand Subject Performance Degree Leader? # A. P. Physics Excellent Bachelor’s No 5 P. E. Excellent Master’s Yes 13 Elem. Class Average Ph.D. No 20 HS French Low Bachelor’s Yes 3 MS History Excellent Bachelor’s Yes 15
  16. 16. Phase Three (Forecast with Foresight) Put down the Magic 8-Ball™
  17. 17. Concentrate and ask again
  18. 18. Future is unclear
  19. 19. It is decidedly so
  20. 20. Build a Construct <ul><li>Place current staff </li></ul><ul><li>Project Movement </li></ul><ul><li>Compare to existing plan </li></ul><ul><li>Shape to Reality </li></ul>
  21. 23. Phase Four Sweat the small stuff (Implement with care and precision)
  22. 24. one thing leads to another…
  23. 25. … but it’s not that simple…
  24. 26. Merit-Based Tiers <ul><li>Professional Preparation </li></ul><ul><li>Instructional Performance </li></ul><ul><li>Classical Philosophy </li></ul><ul><li>Extra Contributions </li></ul><ul><li>Teamwork/Leadership </li></ul>
  25. 27. Market Factors 0% Elementary Classroom 9th English JH Social Sciences 9% Chemistry AP Literature Reading Specialist 14% AP Physics Elementary Latin Special Education 20% AP Latin
  26. 28. Applied Communications Standalone Communication Tools Embedded Communications Tier Descriptions Defined database for offers Market Factors Added to offer letter Guidelines for movement Linked to the teacher evaluation system
  27. 29. Phase Five Keep your hand on the rudder (Maintain course)
  28. 30. Control Systems <ul><li>Regulate the Base </li></ul><ul><li>Constrain Distribution </li></ul><ul><li>Moderate Movement </li></ul>
  29. 31. Strategic Compensation In Practice Certainty Predictability Fair Deals
  30. 32. Visual Summary ≠
  31. 33. Verbal Summary Scrape the right windshield… … with the right tool Design Strategically Apples are not oranges Differentiate Purposefully Put down the Magic 8-Ball Forecast with Foresight Sweat the small stuff Implement with care and precision Keep your hand on the rudder Maintain Course
  32. 34. Strategic Teacher Compensation Doug Hering Ph.D., CMA [email_address] Peter Hilts [email_address]