Performance Based Compensation Report

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Recommendation for a New Teacher Compensation System Core elements of a new compensation system framework: State law only defines a minimum entry-level salary for new teachers with 0 years of experience based on degree held at entry. State law does not mandate a step increase. The suggestion is to set the base at the current 0year levels for 2012-2013. o Local school districts shall establish salary schedules meeting the minimum entry-level established by the State. Salary schedules may include “based-building” components and one-time bonus payouts. Base building criteria are designed to increase the base salary of an individual within a given district. One-time bonus payouts may be built in the plans and do not add to the base salary. o Local district salary schedules for teachers and administrators shall be based upon the following criteria, with no one criterion accounting for more than 50% of the formula used to compute such salaries: 1. Effectiveness: a. Performance Appraisal: as determined by the performance evaluation programs (M-STAR for teachers and the Principal Evaluation System for administrators). 2. Demand: a. Based upon critical subject areas or certifications b. Based upon teaching in high need schools or low performing schools o No teacher or administrator who is rated “unsatisfactory” on the performance evaluation system shall receive a salary higher than that received in the previous school year. o Districts may establish bonus or incentive pay plans based on performance. Bonuses or incentives are one-time payments designed to reward highly effective teachers and administrators.

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