Differentiated Pay Design Options. District Webinar 2 November 15, 2013

Transcription

1 Differentiated Pay Design Options District Webinar 2 November 15, 2013

2 Today s Agenda Previous Resources Webinar Goals Differentiated Pay and Human Capital Systems Compensation Redesign Elements: Base Pay District Priority Incentives (Hard-to-staff) Roles Bonuses and Rewards 2

3 Previous Resources Differentiated Pay Submission Document Website: Accelerated Cohort Materials District Webinar 1 Resource Guide Part I: Stakeholder Engagement and Communications 3

4 Differentiated Pay as a Component of a Comprehensive Human Capital Strategy 4

5 A comprehensive human capital strategy consists of Ultimate goal Increase Student Achievement HC Levers to Achieve that Goal Attract & Retain Top Talent Improve the Existing Talent Make the Most of Talent HC Systems and Structures that Support each Lever Hiring & Selective Retention Professional Growth Strategic Assignments to Schools/Teams and Roles HC Systems & Structures that support all HC Levers Value Proposition, Compensation, Career Path/Differentiated Roles, Exiting Low-Performers Data-Informed HC Decision-Making Measurement and Evaluation (Pre-condition)

6 So what makes an effective human capital system? TEACHER EFFECTIVENESS IN IMPROVING STUDENT OUTCOMES 1 Measuring Teacher Effectiveness: Evaluate teachers based on a clear & rigorous combination of multiple measures. 2 Job & Team Assignment: Prioritize effective teachers for high-need students, and strategically assign teachers to jobs & teams. Current Teacher Performance Potential Teacher Performance 5 Hiring: Optimize new teacher supply by hiring from preparation programs whose teachers consistently achieve better student outcomes. 3 Instructional Support & Professional Development: Boost effectiveness of all teachers through targeted professional development. 4b Retain and leverage the most effective teachers. 4c Improve or exit persistently less effective teachers and replace with more effective teachers. 4a Career Path, Recognition, & Retention: Develop career trajectories that acknowledge different teacher needs and expertise. Source: Slide adapted from The New Teacher Project s School Leader s Toolbox, 6

7 Think of teaching as a value proposition We want to attract and keep great employees Why do people start teaching and keep teaching? They are attracted by the Intrinsic value Value Proposition 7

8 What does the current value proposition look like? 15 year teacher salaries are 60% of full-time earnings for year olds with a BA 100% 80% 60% 40% Full-Time Earnings, College Education (Age 25-64) Teachers Non- Teachers 20% 0% Source: Organization for Economic Co-operation and Development. (2011). Building a high-quality teaching profession: lessons from around the world. Retrieved February 28, 2012 from 8

9 Looking at all the components of the value proposition together is critical Benefits Career Opportunities Rewards Working Conditions Salary Growth Opportunities Teachers perceptions of their school administrators is the most important factor affecting whether or not they decide to stay at a school, trumping concerns about base salary. 6 Research Highlight 9

10 What does the current value proposition look like? A recent study surveyed top 1/3 of college graduates: Only 1/3 believe teaching pays enough to support a family 1/2 believe they could earn more as a garbage collector Source: Auguste, Byron, Paul Kihn and Matt Miller. (September 2010). Closing the Talent Gap: Attracting and Retaining Top-third Graduates to Careers in Teaching. McKinsey & Company. *Note: Median pay for Refuse and Recyclable Material Collectors is $32.9K, Kindergarten and Elementary School Teachers is $51.3K, Secondary School Teachers is $55.1K 10

11 As such, we re not always attracting and retaining the top talent 25% 20% ATTRACT Percent of Teaching Workforce from Top Third of College Graduates 1 23% RETAIN Teachers in the top quartile of performance on entrance exams are twice as likely to leave the profession as those in the lowest quartile 2 15% 14% 10% 5% 0% All Schools High Poverty Schools 11

12 Attracting and retaining top talent may require a holistic approach to the entire value proposition Emerging initiatives to attract and retain teachers at high-need schools share 5 common types of teacher incentives Move with Team Additional Support/Training Strong School Leader Prestige Additional Compensation 12

13 Hours Per Year Districts can vary widely in certain aspects of the value proposition, such as total teacher hours Total Number of Contractual Annual Teacher Hours (Length of Teacher Day) x (Number of Days) 1,500 1, ,400 1, ,300 1, ,200 1,150 1,100 13

14 Where are the mismatches in value proposition in order to attract and retain the most effective teachers? Career/Growth Opportunities Learning Opportunities Tuition Reimbursement Sabbaticals Professional Dev. Opportunities for collaboration with peers /on-the job learning time Coaching and mentoring Performance reviews Certification renewal Instructional Supports Curriculum supports Formative Assessment Advancement Opportunities Career ladders and pathways Leadership opportunities Working Conditions Salary Benefits Rewards Job Structure Flex time Part-time Job-sharing School schedule (day and year) Load, number of preps, and duties Planning time Working Conditions Safe and clean environment Collegial working conditions Opportunities for input, participation, and impact Strong school leadership Job protection Salary (Min, Max, Potential/Expected Trajectory, COLA) District-Priority Premiums High-needs areas and schools Market-Incentive Premiums Math and science teachers Roles and Responsibilities Leadership Contribution/Additional responsibilities Stipends for additional hours Monetary Rewards Individual and group performance Health and Welfare Medical plans FSAs Life insurance Disability insurance Discounts for fitness clubs, etc. Retirement Pension Accumulated leave Health insurance Pay for Time Not Worked Summer/winter breaks Vacation Holidays Religious holidays Sick leave Bereavement leave Maternity/paternity leave Service Awards Peer-recognition awards Performance awards Appreciation awards Innovation awards Individual and school 14

15 What are some ways to continuously evaluate your district s value proposition? Benchmarking Salaries Working Hours Principal Quality Surveys Declined offers: Why were teaching offers turned down? Entry: Why did teachers join the district? Exit: What made teachers decide to leave the district? Informal conversations w/ teachers District leaders need to continuously reflect on how confident they are in the value proposition, what they are tracking and how they can make it better over time. 15

16 Compensation Redesign Elements

17 Teacher Compensation Pyramid Rewards Roles District Incentives Base 17

18 Compensation Redesign Decisions Embedded in the elements of teacher compensation are a set of optional Opportunity and Investment decisions Opportunity Decisions: create flexibility and free up funds to reinvest in differentiated pay Investment Decisions: require additional funding or a reallocation of current funds Opportunity Decisions Decision 1: Education Pay Decision 2: Experience Pay Decision 3: Effectiveness Pay Decision 4: Future State Increases $ Investment Decisions Decision 5: District Priority Incentives Decision 6: School Roles Decision 7: Bonuses, Rewards, and Recognition 18

19 Base Salary is critical for attracting and retaining teachers Base Salary Guaranteed or set pay Increases over time Currently based on education and experience. In the future? Rewards Roles District Incentives (for hard-to-staff positions) Base 19

20 Click to edit Master title style Design considerations for Base Salary Schedule is competitive with local labor market Starting salary is sufficient to attract required new teacher pool Proficient teachers earning family living wage early Human capital structures allow low performers to improve or exit Wage gap between teachers and non-teachers 4 years out of college $6.8K $ Non- Technical $13.5K $ Technical 20

21 Base Salary Redesign Decisions Restructuring or modifying base salary schedules generates the opportunity decisions: Education Pay Experience Pay Future State Increases Effectiveness Pay Rewards Roles District Incentives (for hard-to-staff positions) Base 21

22 Opportunity Decision: Education Pay Options for restructuring education pay to generate additional opportunity for reinvesting in differentiated pay include: Remove and reinvest all education pay Only provide education pay increases at the levels of the state minimum schedule (in the state has two levels - Bachelor and Advanced Degree) Consolidate education pay lanes (i.e., combine MA and MA+30 lanes into a single lane) Reduce the amount of the lane increase for education pay Offer tuition reimbursement rather than education pay No change in education pay 22

23 Opportunity Decision: Experience Pay Options for restructuring experience pay to generate additional opportunity for reinvesting in differentiated pay include: Remove step increases and reinvest all experience pay Reduce the dollar amount of experience pay to match the amount of the increases provided in the state minimum salary schedule Cap experience pay after a set period time (i.e., five years, ten years, etc.) Reduce the timing of experience pay to match that of the state minimum (i.e., providing increases at only the one, six, and eleven year marks) No change in experience pay 23

24 Opportunity Decision: Future Increases Options for restructuring experience pay to generate additional opportunity for reinvesting in differentiated pay include: Apply 100% of future increases to fund the district s salary schedule (This may be the current traditional schedule or any modified schedule that would be developed.) Apply a particular percentage of future increases to the salary schedule and reinvestment the remaining percentage in other investments (i.e., apply 50% of an increase to the salary schedule and 50% to fund elements like school roles or priority incentives) Apply 100% of future increases to other compensation investments that are outside of base pay (i.e., school roles or priority incentives) 24

25 Opportunity Decision: Effectiveness Pay Option to reduce experience pay and reinvest those funds in providing an effectiveness pay. Effectiveness differentiates base pay increases for teachers based on their performance. Two main types of effectiveness pay: Effectiveness steps Effectiveness bands 25

26 1) Effectiveness Steps: Annual increases that vary based on effectiveness level Click to edit Master title style Annual raises vary by effectiveness Current Avg. Step: $314 Low performing teachers receive no raise Effectiveness Steps replace experience pay Example Effectiveness Steps: Level 5: $400 per year Level 3,4: $315 per year Levels 1,2: No annual raises 26

27 1) Effectiveness steps improve or maintain career earnings for ~90% of TN teachers A teacher entering the new system % of Workforce Current System Redesigned System Level 5 33% $1.4M $1.5M Level 4 35% $1.4M $1.4M Level 3 22% $1.4M $1.4M Level 2 9% $1.4M $1.2M Level 1 1% $1.4M $1.2M ~90% of teachers would earn equal or greater salary over their careers and no teachers would lose money that they are currently earning 27

28 2) Effectiveness Bands Level Criteria Pay Change Roles/Privileges Novice/ Probationary New teachers or those not meeting standards Professional 2 years rated as a Level 5, or 3 years rated as a Level 3 or 4 Master 1 Same as Professional + Additional skills Master 2 Same as Master 1 + Additional experience and evidence of strong leadership ILLUSTRATIVE Starting salary + $0K +0-$2K +0-$4K +0-$4K Provisional contract Mandatory PD Year-long contracts Avail roles may vary based on effectiveness level: mentor, etc. 2-3 year contracts Additional roles which continue to vary by effectiveness level Additional leadership roles 28

29 Investment Decision: District Priority Incentives ALIGN high-performing or uniquely skilled teachers Rewards Roles to challenging or hard-to-fill positions District Incentives (Typically Stipends) Base 29

30 Examples of how District Incentives can be offered All teachers in high-need schools receive an annual incentive All teachers in hard-to-staff positions receive an annual incentive All Level 5 teachers in hard-to-staff positions receive a onetime hiring bonus All Level 5 teachers in hard-to-staff positions receive an annual incentive No district priority incentives 30

31 Examples of how District Incentives can be offered District/Program Hard-to-Staff Schools Hard-to-Staff Subjects Denver, CO $2,400/yr for each year in position at a designated school $2,400/yr for each year in position for a designated subject Hillsborough County, FL Pittsburgh, PA Teach Plus Lincoln County, TN Putnam County, TN 5% of base for each year in position for effective teachers at 90%+ FRL schools $12,200/yr to a limited # of Turnaround Teachers in low-performing schools $6,000 on top of base pay for highperforming teachers in low-income, lowperforming schools NA NA $50/student who passes the exam NA NA $4,000 recruitment/retention stipend for designated subjects Additional points towards a bonus for advanced STEM coursework 31

32 Investment Decision: Roles School Roles High performing teachers Additional responsibilities Extend reach to students Extend reach to colleagues Rewards Roles District Incentives Base 32

33 Examples of how Roles can be offered 33

34 Investment Decision: Rewards, Bonuses and Recognition One time additional payments or nonmonetary rewards motivate pre-defined goals Rewards Roles District Incentives Base 34

35 Design considerations for Rewards, Bonuses and Recognition Motivating team performance is critical Reliability of bonus criteria is critical Non-monetary rewards can include public recognition and prestige Lack of evidence of student gains from bonuses when additional support for teachers or other human capital structures are not in place Opportunity to shift bonuses from inputs to outputs 35

36 Examples of how Rewards and Bonuses can be offered Types of Bonuses School-based Team-based Individual Criteria Achievement or Gap Closure AMOs Graduation rate or ACT growth Benchmark data Building-level TVAAS Scores Horizontal-team bonuses Vertical-team bonuses TVAAS scores TEAM scores Improvement stipends 36

37 Examples of how Rewards and Bonuses can be offered Level 5 teachers receive a share of the district s bonus pool Eligible teachers receive a flat bonus Eligible teachers receive a bonus that is a percentage of their base salary No monetary bonuses, only public recognition and celebration 37

38 Wrap Up and Additional Resources New resources: Resource Guide Part II Visioning Template: Draft planning tool Cost Checker: Customized by district Excel Model Contact Information: 38