Compensation & Benefits Summary

Compensation & Benefits Content in Context What can we use to attract, deploy, and retain staff to the schools and subjects that need them most? Compensation & Benefits

What are Compensation & Benefits? Compensation & Benefits are any items of monetary or non- monetary value that an employee receives from an employer in exchange for their services Common forms of compensation include: Base salary Differentials for additional work Health benefits Incentives to teach in high-needs schools or subjects Performance bonuses or pay Pension or Deferred compensation Time – e.g., additional prep classes Perks – e.g., gym memberships, discounts, preferred parking

Components of Total Compensation Bonus Pay Differentiated Roles High Needs Incentives Benefits, Deferred Comp, Perks Base Salary Local Budget Conditions Collective Bargaining Base salary: What most people think of when they hear compensation – this represents 90-95% of teacher pay before benefits. (CAP, 2015). Base pay is the foundation of the salary structure and is the money received for a given work period and for a particular set of responsibilities. It doesn’t include overtime, pay for additional roles, or performance-related bonuses. Benefits: A big bucket that encompasses direct and indirect rewards and benefits provided to an employee – like healthcare, leaves, pension, tuition reimbursement, housing, childcare, etc. High Needs Incentives: Extra compensation teachers receive to take on more challenging or in-demand roles. These incentives are generally not permanent increase to the base salary – and only apply while the individual is in a high-needs school or subject. Differentiated Roles: Extra compensation teachers – specifically highly effective teachers – receive to take on additional roles – like those of a coach or mentor – to expand their reach. Bonus Pay: A one-time additional payment for specific behaviors or results – like increases in student achievement. State Laws & Regulations Adapted from ERS, “Strategic Design of Teacher Compensation.” 2012.

Recommendations to Consider Compensate What You Value & Want to Incentivize Limit bonuses Consider behavior you’re incentivizing Bonus Pay Differentiated Roles High Needs Incentives Benefits, Deferred Comp, Perks Base Salary Ensure selection of only high eff. teachers Use financial & nonfinancial comp Use them, but fix working conditions too Ensure teachers maintain eff. and role Tailor benefits – not one-size-fits-all Make pensions portable and accrue uniformly Keep competitive – but not too high Speed progression thru scale based on effectiveness using multiple measures Phase out increases for items that don’t add value for students Adapted from ERS, “Strategic Design of Teacher Compensation.” 2012.

Why is This Important? Compensation & Benefits Compensation and benefits impact an organization’s ability to get, deploy, and retain great staff Strong compensation and benefits provide organization’s with a competitive edge over other employers Strategic or Not

Keep in Mind Things to Remember Individuals value various components of compensation and benefits differently based on their needs and stage of life Compensation strategies will differ based on district priorities and challenges, funding, State law, and teacher demographics/ experience New compensation practices require complementary structures – especially a fair and reliable performance management system Not all compensation strategies require extra money or contractual changes – be creative Working conditions matter too Feedback from key stakeholders on your compensation system is critical Use an exit survey to understand which compensation issues impact your teachers Strategic or Not

Making Connections Related Content ERS Teacher Compensation Self-Assessment An ERS Tool that allows HR teams to assess the components of their compensation strategy. Research & Resources on Compensation This tool provides links to key articles and research on teacher compensation. Teams can use this document when considering ways to improve on their current compensation system.