Merit pay

Merit pay is a term describing performance-related pay, most frequently in the context of educational reform. It provides bonuses for workers who perform their jobs effectively, according to measurable criteria. In the United States, policy makers are divided on whether merit pay should be offered to public school teachers, as is commonly the case in the United Kingdom.

Rationale

Proponents argue that paying teachers according to their effectiveness would be consistent with management precepts from the private sector and would lead to better educational outcomes.

Lewis Solmon, President of the TAP and a control group that merit pay contributes toward student achievement. The RAND study concluded that fifty percent of the schools with these reforms outperformed the control schools in math and forty-seven percent outperformed the control in reading.^[1]

Schools that use merit pay are better able to attract teachers than schools with no merit pay system. At least, that is what the main goal of merit pay is. This is especially helpful in enabling schools with lower socioeconomic status attract qualified teachers. For instance, a review of a the Teacher Advancement Program [1] in Arizona showed that over a three year period, 61 teachers started working at the two schools of lowest socioeconomic status in the Madison school district, both of which use the TAP and of these teachers 21% have come from schools in high socioeconomic areas.^[2]

Merit pay programs can also alleviate the problem of teacher retention. Stronge, Gareis and Little (2006) argue that merit pay or other performance pay programs provide added motivation for teachers in keeping novice teachers from leaving the profession after a few years and especially in retaining experienced teachers.^[3]

Political Opposition

Barack Obama does not support merit pay for teachers. He believes teachers' pay should be increased based on performance tests, not arbitrary tests. He wishes to work with the NEA to find a new system to get rid of performance pay .^{[4] [5] [6]} The National Education Association (NEA) adamantly opposes some forms of merit pay. In June 2003 NEA President Reg Weaver said:

"Teachers understand that politically motivated panaceas such as merit pay and eliminating tenure do nothing to improve teacher quality. Our members are open to alternatives, but we will always oppose quick fixes designed to weaken the voice of teachers and effectiveness of education employees in all jobs."[6]

Other opposition

A study by the Urban Institute found some positive short-lived effects of merit pay, but concluded that most merit pay plans "did not succeed at implementing lasting, effective ... plans that had a demonstrated ability to improve student learning." Problems included low teacher morale because of increased competition between teachers, as well as wasted time and money in the administration of the merit pay plans. The same study found "little evidence from other research...that incentive programs (particularly pay-for-performance) had led to improved teacher performance and student achievements."^[7]

Marie Gryphon, an education policy analyst at the Cato Institute, makes some practical objections:

• The system can't simply reward high scores. If it did, it would favor teachers in wealthy neighborhoods whose students came to school with excellent skills. Nor can the system reward only improvement. If it did, it would unfairly penalize teachers whose students were already scoring too well to post large gains.
• Moreover, any money for test results scheme will worsen the problem of teachers cheating on standardized tests to avoid the consequences of the No Child Left Behind Act. Teachers willing to erase wrong answers on exams to avoid having their school labeled "needing improvement" will also be tempted by the thought of a personal raise.^[8]

References

1. ^ Solmon, Lewis. The Case for Merit Pay. In: Peterson, Paul. ed. Choice and Competition in American Education. Lanham: Rowman & Littlefield Publishers, Inc. (2006). ISBN 0-7425-4581-4 pg. 110
2. ^ Solmon, Lewis. The Case for Merit Pay. In: Peterson, Paul. ed. Choice and Competition in American Education. Lanham: Rowman & Littlefield Publishers, Inc. (2006). ISBN 0-7425-4581-4 pg. 106
3. ^ Stronge, J., Gareis, C. & Little, C. Teacher Pay and Teacher Quality: Attracting, Developing and Retaining the Best Teachers. Thousand Oaks: Corwin Books. (2006). ISBN 1-4129-1321-7 pg. 20
4. ^ "Obama tells teachers he supports merit pay". INQUIRER. 2008-07. http://www.philly.com/philly/news/8335627.html. 
5. ^ Obama, Barack (2009-03-10) (Speech). Washington, D.C.. http://www.whitehouse.gov/the_press_office/Remarks-of-the-President-to-the-United-States-Hispanic-Chamber-of-Commerce. Retrieved December 17, 2009. 
6. ^ Anderson, Nick (2009-12-13). "Performance pay for teachers would quadruple under bill approved by Hill". Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2009/12/12/AR2009121202691.html?referrer=emailarticle. Retrieved 2009-12-17. 
7. ^ "Urban Institute Study of Merit Pay Systems". Pennsylvania State Education Association. http://www.psea.org/article.cfm?SID=165. Retrieved 2007-08-02. 
8. ^ Gryphon, Marie (2005-02-18). "Pair Merit Pay, School Choice". Cato Institute. http://www.cato.org/pub_display.php?pub_id=3682. Retrieved 2007-08-02.