1. Compensation & Benefits
Summary

2. 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

3. 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

4. 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.

5. 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.

6. 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

7. 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

8. 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.