Why Alt Comp?

The overriding motivation in any discussion of important changes to schools must be to improve the future prospects for children. In a discussion that so directly affects teachers, a second top priority must be to support the enhancement of the teaching profession.

Half of all new teachers leave the profession within five years, many citing money and professional dissatisfaction as key reasons. Public school teachers’ salaries in California are based solely on number of years teaching and their credentials. Although this system removes obvious discriminatory compensation practices, it is blind to expertise, effectiveness and market conditions.

In addition to these high-level motives, specific issues have motivated unions and districts to work together to craft alternative compensation plans.

Attract Strong New Teachers

Attracting quality teachers to the profession is a critical challenge. With about a third of California’s teaching force (97,000 of the state’s 306,000 teachers) nearing retirement, the Center for the Future of Teaching and Learning estimates that California will need an additional 100,000 teachers over the next decade. In addition to a record number of teachers due to retire, the problem is exacerbated by:[1]

• Falling applications to teacher credentialing programs, which declined 8% in 2004 and 3% in 2003.
• More teaching posts across the state as a result of reduced class sizes.
• Growing student population.

Alternative compensation plans, properly designed, enable districts to distinguish themselves by authentically offering excellent teachers opportunities to increase their earnings. The mentorship and professional development structures associated with most alternative compensation plans also enhance a district’s appeal to new educators who are motivated to build their professional skills in a supportive environment.

Retain Effective Teachers

In California, an average of 20-30% of all new teachers leave the classroom within three years. In urban districts turnover rates are closer to 50% within the first five years.[2] Research makes it clear that compensation is not the primary reason teachers leave the profession, but it can be a factor in teachers’ decision to transfer from one district to another.[3]

Dialogue about alternative compensation cannot be regarded as a success if it merely results in a different pay system. Such dialogue also has the potential to unearth insights about the objectives and needs of the district and its employees, leading to a new sense of purposefulness, professionalism and productivity. Districts that identify ways to attract great new teachers by making their districts the best places to work will also reduce turnover. Pay is just one element in these challenges, but a discussion of the purpose and structure of teacher pay is a great launching point to drive collaborative discussion of the "total package" of working conditions (including, but not limited to pay).

Fill ‘Hard to Staff’ Positions with Excellent Teachers

There are two reasons a teaching position could be hard to staff: 1) the position could require skills that are in short supply (math, science, English language instruction and special education are often cited as examples); or (2) the position could be in a school or setting with relatively unattractive working conditions.

Scarce Skills

Salaries for teachers (particularly new teachers) tend to be lower than those in other professions requiring similar education and training. Without arguing that this is proper, it can at least be said that teachers choose their career for reasons that are not purely financial. However, for individuals with specialized knowledge and training – such as expertise in mathematics and science – the compensation gap is particularly large, and many districts struggle to fill classes in these subjects with effective instructors. Alternative compensation plans can be crafted to directly address competitive pay challenges for job-related subject matter expertise.

Tough Schools

Extra pay cannot make an unattractive working environment into an attractive one. It can, however, serve as part of a larger strategy to add vitality, experience, staffing stability and teamwork into schools that need special attention or intervention.

Increase Professionalism

Teachers generally start and end their careers with the same job title and responsibilities. This reality provides limited incentives to seek continuing education, development and additional responsibilities. Alternative compensation strategies can be crafted to support and facilitate reflective practice, use of data in support of instructional goals, pedagogical development, and other aims consistent with ongoing professional growth.

Attract New Investment

In virtually every case, part of the reason districts and unions collaborate to craft alternative pay plans – at least initially – is to attract new money to the district. By demonstrating leadership, collaborative effort, and a fresh approach, districts attract funding from sources such as federal TIF grants, state program investments, and foundation support. They also stand to change the way that voters and community members view their investment in the schools’ primary work. With some justification, voters believe that the single salary schedule bears little or no connection to success at schools’ single most significant goal: improving student learning.[4] Alternative compensation structures can attract support from taxpayers partly because they are explicitly designed to compensate teachers in a manner that taxpayers can understand clearly.

Sources:
¹ California Teacher's Association, Issues in Education - Teacher Shortage
² Preview of research from Ken Futernick based on an “inactive” sample of STRS members
³ Sanders and Rivers, "Cumulative and Residual Effects of Teachers on Future Student Academic Achievement," 1996
⁴ Cory Koedel and Julian R. Betts, "Re-Examining the Role of Teacher Quality In the Educational Production Function," 2006