Merit Pay Benefits

Information on the strengths, weaknesses, benefits, and pitfalls of merit pay programs is varied and contradictory (Koppich, 2005). Since 1982, politicians have believed shifting to performance pay from the traditional single salary schedule in education would cause a significant rise in teacher performance and therefore produce measurable gains in student achievement (Jupp, 2005). However, thousands of U.S. school districts continue to operate using a standard salary schedule, an idea first utilized in the early part of the twentieth century (Koppich, 2005). Using the standard schedule, pay increases benefit all employees causing effective teachers and inadequate teachers to receive the same compensation (Solmon, 2005). Merit …show more content…
The best results are obtained when production outputs are measurable and connected to components of instruction that can be linked to a single employee (Bohnet & Eaton 2003). In this case, the desired product is improved student achievement (Callier, 2010). Merit pay programs must be clearly outlined and evaluated through actual student achievement data rather than steps merely thought to influence the outcome (Hanshaw, 2004). If the structure is not based on student achievement, then steps could be identified, completed, and rewarded that have little or no effect on the desired outcome (Hanshaw, …show more content…
What is clearly missing is an assessment of commonalities identified within successful programs. An examination of selected school districts in the United States with performance pay models currently in practice, as well as those utilized in the past, could determine basic components necessary for successful implementation of merit pay for educators. Poorly structured programs can actually yield negative consequences on teacher effectiveness and student achievement (Toch, 2009). Programs initially thought successful have found sustainability difficult over time (Dee et al.,