Performance Based Compensation Report

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Is this because teacher PBC systems are too new to yield data sufficient to satisfy independent researchers that PBC systems indeed result in sustained student growth, or that best practices have not yet evolved? Probably both. But this does not mean there is little to learn from studying systems in progress, nor does it imply that PBC systems should not be used. It simply means that a definitive system has not emerged: there is room for new approaches to be tested as educators seek an optimum mix of results and rewards. In time, a best practice will evolve, most likely a hybrid of PBC system features that drive sustained student achievement. This system described in this report borrows fundamental success factors from proven PBC systems in other industries, adds experience of those developing PBC systems for teachers, and links PBC-system objectives to current MDE strategies. Said another way, this system design is expanded beyond a compensation approach; it is intentionally structured to align PBC objectives with those of the teacher evaluation process now rolling into districts. Flexible in its design, this PBC system becomes a tool for principals to drive teachereffectiveness growth—growth necessary for schools to be prepared for the challenges of CCSS. This report also describes an implementation plan and sequence that illustrates a way to manage the triple integration of teacher appraisals, PBC, and the CCSS. Challenges, risks, governance, and funding related to this PBC system will also be addressed. In this work, the researchers intentionally investigated different approaches in order to incorporate adaptable options in this PBC system. The report illustrates a practitioner’s approach to PBC that deliberately ties compensation design to organization strategy, a best practice in business organizations. It will add to works in progress to create an effective PBC system for Mississippi teachers.

Limitations There are some limitations to this report, both in its creation and its use. By design, the timetable and resources available to develop this system alternative were limited. The state-of-the-art for modern PBC systems for teachers is still evolving. Therefore, this system includes extractions from programs in progress and extrapolations from experiences shared by educators rolling out PBC systems. Admittedly, the system also draws from one researcher’s long tenure working with employee-based compensation systems in business.

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