A project I created for class.

1. THE FACTS ABOUT
TEACHER MERIT PAY
By Sarah Hans

2. TEACHER MERIT PAY
What is it?
• In the traditional system, teacher pay is based on seniority
• In a Merit Pay System, classroom performance is used to determine part of
each teacher’s salary
• Whether a teacher receives a bonus is usually determined by a complex
formula based on principal evaluations, classroom observations, and gains
in standardized test results
• Funding a Merit Pay System requires extra money in the form of grants or
tax levies

3. TEACHER MERIT PAY
Opponents of the Merit Pay System argue that such a system would:
• Increase competition between teachers, when collaboration is preferable
• Unfairly penalize those teaching low-income, non-English speaking, or
developmentally disabled students
• Result in teachers “teaching to the test” exclusively
• Reallocate needed funds in already-strapped school districts because bonuses
are ineffective unless they are a significant portion of a teacher’s income
• Fail to provide teachers with financial stability, making the profession less
desirable to the talented
• Allow principals and school boards to reward their favorites rather than those
who are deserving
• Require an extensive and costly bureaucracy just to implement

4. TEACHER MERIT PAY
However, proponents of the Merit Pay System argue that:
• Collaboration can be rewarded by including it in the formula used to
determine bonuses
• A little competition is healthy, and professionals in other fields are rewarded
based on performance
• The promise of substantial bonuses will attract more talented teachers to the
profession, retain high-quality teachers, and make clear which teachers should
be removed for poor performance
• Principal favoritism can be overcome by creating a clear rubric to determine
bonuses and including other administrators, teachers, and even parents on
the committee that determines bonuses
• Rewarding teachers with bonuses doesn’t have to cost more than the
Seniority System

5. SURVEY
Thirty respondents were surveyed to gather popular opinion regarding Teacher
Merit Pay.
Demographics:
• 21 respondents (70%) lived in Ohio, while 9 lived in other states
• 22 respondents (73%) were between the ages of 21 and 40
• 8 respondents (27%) were older than 40
• 5 respondents (17%) were employed at an elementary, middle, or high school
• 8 respondents (27%) had a child enrolled in elementary, middle, or high school
• 21 respondents (70%) had heard of Teacher Merit Pay prior to the survey

6. SURVEY
Which system do you prefer for determining teacher
salaries?
Merit Pay System
27%
Neither
56%
Seniority System
17%

7. SURVEY
Reasons given for preferring Merit Pay:
• “Even if the teachers are "teaching to the test" at least they are teaching
SOMETHING. I have metrics in my job, why not everyone?”
• “If a teacher has been at a school for years, with or without good results, they
may stick there. I had a math teacher in high school that none of the students
in his classes did well. I graduated a few years ago and as far as I know, he's still
there. Not fair to the student.”
• “Pay for performance works elsewhere. Why not in schools?”
• “Teachers would strive to improve their students' performance and have a real
financial reason to do so.”
• “There are plenty of really good, young teachers who leave the profession do
to low pay, low respect, etc. It's been shown that advanced degrees and
seniority are not what makes an effective teacher.”

8. SURVEY
Reasons given for preferring the Seniority System:
• “Experience means more than an ability to work the system.”
• “A merit pay system creates perverse incentives that force teachers to teach to the
test, teaching almost exclusively to those students not quite at standards who can
plausibly be raised to standards while neglecting almost entirely the education of
those who are at or above the minimum standards. Seniority puts teaching in line
with other jobs and encourages long-term commitment to teachers improving their
own educations and contributing to school districts.”
• “In a seniority system, bad teachers can be weeded out. In a merit pay system, good
teachers are punished due to factors beyond their control, like ho well a child slept
the night before a tesr and whether the child has support at home.”
• “The Merit Pay System just means the teacher is the best at teaching kids how to
take standardized tests. I don't believe this is a quality education. And while older
teachers don't necessarily equate GOOD teachers, it may mean they have more
experience in catering to different students' learning styles.”

9. SURVEY
Reasons given for preferring Neither Merit Pay nor Seniority:
• “Students would benefit from a mixed system in that they would have access to
experienced and highly educated teachers as well as those with innovative ideas
who are willing to challenge the status quo; a balance is key to taking advantage
of both sides.”
• “I'm not sure there's data that says merit pay is an effective incentivizer for
helping teachers become more effective. It would be nice for school to become
more collaborative in terms of teacher feedback, improvement, and student-
centeredness.”
• “Teachers should have their salaries increased when their students perform well
and not based solely on their seniority, however, standardized testing does not
reflect how well a teacher influences his or her students. Teachers should also
not have to worry about being fired because of a standardized test.”

10. SURVEY
Overall:
• Respondents seemed to have a good grasp of what the Merit Pay System
involves. Many learned about it from NPR or the news.
• Respondents believed that a hybrid of Merit Pay and Seniority Systems would
allow ineffective teachers to be removed (via the elimination of tenure) but
would reward good teachers for more than just standardized test scores.
• Several respondents mentioned increasing teacher salaries to be more
commensurate with those received in other nations, such as Japan or
Finland, which have higher standardized test scores and graduation rates.

11. TEACHER MERIT PAY
Does the Merit Pay System increase positive outcomes for students?
Let’s take a quick look at Merit Pay Systems implemented in:
Denver, Colorado
New York City, New York
Nashville, Tennessee
Atlanta, Georgia

12. DENVER, COLORADO
In Denver:
• Merit Pay was implemented in 2006
• The new system required a $25 million tax levy
• Teachers and district leaders collaborated on the rubrics used to determine
bonuses
• Teachers working with underprivileged, ESL, and developmentally disabled
students receive an automatic bonus of $1,000
The results:
• Slight increases in teacher effectiveness - equivalent to “the difference in
effectiveness between a first-year teacher and a second- or third-year teacher”
• Vast improvement in teacher retention, retaining approximately 160 teachers
per year more than before the system was implemented

13. NEW YORK CITY, NY
In New York City:
• Merit Pay was implemented in 2008
• Between 2008 and 2011, over $56 million was paid out in performance bonuses
• Bonuses were awarded to schools rather than teachers, and most schools chose
to distribute these bonuses evenly among teachers
• Bonuses amounted to about $3,000 per teacher
The results:
• A study performed by the RAND Corporation found that Merit Pay had “no
positive effect on either student performance or teachers’ attitudes toward their
jobs”
• The program has been discontinued in light of this information and increasing
budget constraints

14. NASHVILLE, TENNESSEE
In Nashville:
• Merit Pay was implemented from 2006 to 2009
• Middle-school math teachers were offered bonuses of up to $15,000
• Bonuses were determined only by test scores
• Teachers received no mentoring or professional development
The results:
• A study performed by Vanderbilt University found that classes taught by
teachers rewarded bonuses progressed no more quickly than those taught by
colleagues in a control group who were not receiving bonuses
• Teachers gradually lost enthusiasm for bonus pay as the study progressed
• Most teachers claimed they changed little or nothing about their teaching
methods in response to the possibility of receiving a bonus

15. ATLANTA, GEORGIA
In Atlanta:
• Merit Pay was implemented in 2009
• Bonuses as large as $500,000 were awarded to schools with achievement gains
• Bonuses were largely determined by test scores
The results:
• 180 educators and 38 principals at 13 schools were implicated in a district-wide
cheating scandal
• Teachers were intimidated and coerced into changing student scores, sometimes
at organized test-score changing “parties”
• Principals rewarded teachers who toed the party line with bonuses and
punished those who refused to cheat with negative performance reviews, even
reporting many to the district

16. CONCLUSIONS
You may make your own conclusion based on these facts, but here is mine:
Teacher merit pay can provide small gains in student achievement, but the
system is fraught with too many problems to be worth the costs and risks.
• Atlanta is not the only city facing a cheating scandal. Teachers and principals
have been accused of cheating in Houston, TX; Washington, DC; and other
districts.
• Merit pay systems are costly to implement and maintain, both in terms of
money and time. Florida spent $4 million just to create the formula to
determine bonuses for their new program. Administrators and teachers spend
countless hours record-keeping and determining who will receive bonuses.
• A large body of evidence exists showing that teacher experience and content-
area knowledge are consistently linked with student achievement. Little to no
evidence exists that Merit Pay Systems improve student achievement.

17. CONCLUSIONS
Thank you for viewing my presentation, and don’t forget to check out the
resources on the next page!

18. References:
Pros and Cons of Teacher Merit Pay – Educational Research
Merit Pay: Good for Teachers? - Scholastic
DPS teacher-pay system likely boosting student achievement, study finds - The Denver Post
New York City Abandons Teacher Bonus Program – New York Times
Merit pay study: Teacher bonuses don't raise student test scores – USA Today
Investigation into APS cheating finds unethical behavior across every level – AJC
Cheating Atlanta Schools Received $500K in Bonuses, What Now? – Color Lines
Florida teachers get ready to get graded – The Miami Herald
Teacher Quality - Education Week