1. Compensation & Benefits
Capturing Our Learning

2. Overview
Purpose: To provide a competitive advantage and ensure that teachers are paid commensurately for their hard work and receive those benefits that encourage them to stay in the field.
Key Elements of Compensation & Benefits
Comparing Compensation with Surrounding Districts
Structuring Compensation Systems Based on Performance
Structuring Compensation Systems to Expand the Reach of High-Performing Teachers
Structuring Compensation Systems to Incentivize Teaching in High-Needs Schools and Subjects
Individualizing Benefits Systems
Providing and Monitoring Leave as a Benefit Locally or Through the State
See the Teacher ABC Tool and Executive Summary of the Teacher Puzzle Pieces for additional information
Urban Schools Human Capital Academy

3. Key Research
90% of US districts use a lock-step approach to teacher performance – across subjects and grade levels, disregarding need
Earning an advanced degree has little to no impact on student performance TNTP, 2014
Pay-for-performance has not been shown to improve student achievement, nor change teacher practice Marsh, et al, 2011
Discretionary absences for short-term illness or personal days, are not only costly to schools and districts, but also negatively impact student achievement
For every ten teacher absences, student achievement in mathematics decreased by 3.3 percent of a standard deviation, or the difference between having a first or second year teacher and a teacher with three to five years of teaching experience Miller, 2008
Urban Schools Human Capital Academy

4. Metrics
Key metrics to understand performance in this function include:
% of teachers leaving the profession citing compensation – via exit or other survey
Average number of absences by category compared to national averages and benchmark goals (VI.F)
% of leave use by type of leave
Urban Schools Human Capital Academy

5. Key Content
Compensation & Benefits

6. 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.

7. The Reality: A System Stuck in the Past
The History of Teacher Compensation
Late 1800s
Early 1900s
1920s – 2016: Single Salary Schedule
Room & Board
Position & Grade-Based Salary
Commonly referred to as Step & Lane
Used by 90% of school districts
Accounts for % of teacher raises
Designed to decrease discrimination in pay
Aimed to use objective measures – years of experience, degrees obtained
Sources: University of Wisconsin-Madison Consortium for Policy Research in Education (CPRE), “History of Teacher Pay.” 2012, and Center for American Progress. ”Do More, Add More, Earn More.” 2015.

8. The Reality: A System Stuck in the Past
Yesterday’s Comp System Does Not Meet Today’s Needs
Then
Now
Limited options for women & people of color
One route into teaching
Stable: Teacher for life
Pre-Brown v. Board of Ed
Less known about performance
Multiple options for women & people of color
Many routes into teaching
Mobile: Teacher for now
Growing inequities
More known about performance
Yesterday’s Comp System does not Meet Today’s Needs

9. The Research: At Odds with Practice
Linking Compensation Structures to Research & Data
Gains from teacher experience are highest in teachers’ initial years, yet teachers work 20 years+ to reach the top of scale
No correlation between student performance and educational attainment beyond a BA degree in most subjects*
Yet, districts spend $14.8B/ year for attainment of MA degree
Less than 20 percent of new teachers will stay in a retirement system long enough to earn full benefits
Money alone isn’t enough to get and keep great teachers – working conditions matter too
Sources: ERS, “Strategic Design of Teacher Compensation.” 2012.; NCTQ, “Mythbusters.” 2015.; TNTP, “Shortchanged.” 2014.; and CAP, “Do More, Add More, Earn More.” 2015.
*Limited correlation in math and science

10. The Results: Lackluster at Best
An Inadequate Tool for Recruitment & Retention
Teacher starting salaries are 25% less than in other careers
Only 23% of teachers come from top third of college grads
Teachers work 20+ years to reach top of salary scale – 2x as long as other careers
Irreplaceables – 2x as likely to cite dissatisfaction with compensation
Source: TNTP, “Shortchanged: The Hidden Costs of Lockstep Teacher Pay,” 2014.; CAP. “Mid & Late Career Teachers Struggle with Paltry Incomes.” ; ERS, “Strategic Design of Teacher Compensation.” 2012

11. The Results: Lackluster at Best
An Inadequate Tool for Deployment Too
Lock-step compensation reinforces inequitable distribution
Source: TNTP, “Shortchanged: The Hidden Costs of Lockstep Teacher Pay,” 2014.

12. Districts Can Innovate within Current Structure
Milwaukee (blue) changed the curve to enable higher earning potential earlier in the teacher’s career
Rochester (green) teachers earn more at the beginning and end, they accrue $125,000 less in lifetime earnings
DCPS kept lanes and steps intact, but made it possible to move within lanes and steps based on performance
SOURCE: NCTQ, “Smart Money: What Teachers Make, How Long it Takes, and What It Buys Them,” Dec 2014. 12

13. 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.

14. 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

15. Teacher Leave Use
A Key Benefit

16. Why is Teacher Leave Use Important ?
Research correlates with lower student achievement
National benchmark for business/industry much lower (4%) than school districts (8% or higher)
Teacher work year usually 190 days versus business/industry 260 days
Daily leave use/leaves of absence often a major pain point for principals

17. Key Goals in Effective Leave Management
Strategies
1. Clear and Consistent Leave Policies and Communication to Employees
Review laws, board policies, contracts, manuals and SOPs to ensure consistency in leave policies.
Tighten up language and deadlines where possible.
Provide one-stop-shop on district website for information on leave.
Provide tools and resources to school secretaries or other school based personnel who support schools in leaves.
2. Clear Roles and Responsibilities on Leave Management
HR Partner owns helping to manage their schools’ leaves, particularly from staffing perspective
Central Leaves Team owns processing of leave from initial request to completion of leave (re-entry or termination)
The Legal division should be a partner with HR on policies and termination for employees who have abused leave.
Principal signs receipt but NOT approval on leave request and is kept informed on leave status and return to work
Employee submits proper documentation, responds to deadlines, returns to work per approved leave.

18. Key Goals in Effective Leave Management (cont’d.)
Strategies
3. Timely and Accurate Processing of Leave Requests
Set clear turnaround times for all leave types in your district.
Clear escalation paths for leaves that go beyond set turn-around times.
Online system with self-service for employees to submit leave requests.
4. Hold Adults Accountable to Leave Policies
Set clear deadlines for employees to submit leave paperwork and notify of their intent to return.
If employees do not respond to deadlines, move to terminate (partner with legal to understand what you can/can’t do).
Establish appropriate triggers so employees are not taking multiple FMLA leaves without working full 12 months in between.
Remind principals that absenteeism matters and they can and must do something about the excessive leave use.

19. Some Potential First Steps to Addressing Leaves
Goal
First Steps
1. Clear and Consistent Leave Policies and Communication to Employees
Meet with legal and other relevant stakeholders to review leave policies, tighten up language and set clear deadlines.
Set Notification Deadlines to Plan for School Opening. e.g., if a teacher is on child care leave, April 1 should be the latest deadline to notify HR if they are returning the following year or extending, if eligible. If they do not notify their intention by that date, let them know it is treated as a resignation.
2. Clear Roles and Responsibilities on Leave Management
Document as-is state to understand who does what and where roles and responsibilities need to be clarified or shifted.
Establish key metrics for HR to track and review on regular basis (and other stakeholders depending on data).
Provide regular reports on leaves – especially day-to-day leave use by school -- to principals and principal supervisors.
3. Timely and Accurate Processing of Leave Requests
Create triggers in HRIS that prompt automatic action on leaves
4. Hold Adults Accountable to Leave Policies
Address egregious offenders first - work with legal to move to terminate them.
Discuss with principals employees who have exhausted sick/personal leave for the year to determine appropriate next steps (e.g. progressive discipline, FMLA or other leave)

20. Actions for Monday Morning
Determine percentage of leave use (day-to-day) and by category (sick, personal, professional development, etc.)
Determine the fill-rate for substitute teacher requests by school
Determine how much leave is caused by pulling out teachers for professional development
Have payroll run a report of every teacher who has exhausted sick leave balances but is not on a long-term leave
Run a report of any teacher who has taken multiple leaves of absence (returns to work but yearly applies for another leave)
Check the leave balance/situation for every teacher who received an Ineffective rating in the previous year

21. Tools and Activities

22. Tools 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.
PARTNER REPORT: Education Resource Strategies co-authored paper, “Do More, Add More, Earn More: Teacher Salary Redesign Lessons from 10 First-Mover Districts” 2015

23. Activity Take ERS Teacher Compensation Self-Assessment Group Debrief:
What strengths and areas of improvements did we identify about our compensation system?
What is one next step we can take to improve our compensation system?