How to Make Great Teachers

(4 of 5)
Beyond Merit Pay
There are better ways. Florida and Houston might have avoided their mistakes if they had examined some of the more thoughtful approaches to rewarding good teaching that are being tried elsewhere—programs that actively involve teachers and look at more than one measure of how they do their job. In Denver, for example, Professional Compensation, or ProComp, is the product of a seven-year collaboration among the teachers' union, the district and city hall. Rolled out last school year, ProComp includes nine ways for teachers to raise their earnings, some through bonuses and some through bumps in salary. New hires are automatically enrolled, while veterans have the option of sticking with the old salary schedule. But in just one year, half of Denver's 4,555 teachers have signed on.

For Taylor Betz, the program is a no-brainer. A highly regarded 15-year veteran who teaches math in the city's struggling Bruce Randolph School, Betz can rack up an additional $4,268 this school year if she and her school meet all their goals. That includes $1,067 for working in a high-needs school, another $1,067 if students in her school exceed expectations on the state exams, $356 if she meets professional academic objectives she helped set in the beginning of the year, $1,067 if she earns a good evaluation from her principal and $711 if her school is judged to be a "distinguished school," on the basis of a mix of criteria that includes parent satisfaction.

Before ProComp, Betz had reached the top of the district's pay scale at $53,500 and, despite high marks from her bosses, was looking at nothing more than an annual cost-of-living raise (currently $260) for the rest of her career. "I've worked in hard-to-serve schools my entire career," says Betz. "I make home visits. I make phone calls. I'm looking at ProComp as compensation for the things that are above and beyond." Betz didn't expect performance pay to change anything about how she does her job but says it has made her even more driven. "Now I refuse to let kids fail," she says. "I'm going to bulldoze whatever the problem is and solve it." The bonus money is simply a just reward. "I'm not a money grubber. Most teachers aren't. But people in other professions get raises," she says. "Why shouldn't we?"

There's little research on what makes for a successful merit-pay system, but several factors seem critical, says Matthew Springer, director of the National Center on Performance Incentives at Vanderbilt University. Denver's program includes many of them: a careful effort to earn teacher buy-in to the plan, clarity about how it works, multiple ways of measuring merit, rewards for teamwork and schoolwide success, and reliable financing. In fact, Denver's voters agreed to pay an extra $25 million a year in taxes for nine years to support the program.

It's too soon to say if ProComp will raise achievement in Denver, but a pilot study found that students of teachers who enrolled on a trial basis performed better on standardized tests than other students. The program is already successful by another measure: raising the number of teachers applying to work in Denver's most troubled schools. Jake Firman, 22, who joined Teach for America right out of college in 2007, says he chose Denver from a list of 26 cities largely because of ProComp. "I thought it was a very cool idea," says Firman, who stands to earn extra pay for filling a hard-to-staff spot (middle-school math) at a high-needs school.

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