How incentive based pay effects teacher motivation

By Quincy Bryant

Introduction

• How incentive based pay effects teacher motivation

Corporate incentive based programs and the effect on employee motivation

• Moral and financial programs

pay systems

WHO? SYSTEM TYPE BASIS

TEACHERSSINGLE

SALARY PAYEXPERIENCE &

EDUCATION

COMPANIESINCENTIVE

PAYPERFORMANCE

BOACHIE-MENSAH AND DOGBE (2011)Performance-Based Pay as a Motivational Tool for Achieving Organizational

Performance: An Exploratory Case StudyPerformance-Based Pay as a Motivational Tool for Achieving Organizational

Performance: An Exploratory Case StudyPerformance-Based Pay as a Motivational Tool for Achieving Organizational

Performance: An Exploratory Case Study• Established there are some motivational factors to

incentive based pay systems

Employee motivation may have been adversely effected by biased performance appraisals

• Unmotivated people are associated with incremental systems

• Concern: Could not cover all manufacturing companies within the targeted population

• Study not to be overgeneralized

Takahashi (2006)

Effects of Wage and Promotion Incentives on the Motivation Levels of Japanese Employees

Effects of Wage and Promotion Incentives on the Motivation Levels of Japanese EmployeesEffects of Wage and Promotion Incentives on the Motivation Levels of Japanese Employees

• Positive correlation between incentives and employee motivation

Japanese company employees were effectively motivated by the incentive program

• Concern: Most manufacturing workers are male and most teachers are female

Anderson, Dekker, and sedatole (2010)

An Empirical Examination of Goals and Performance-to-Goal Following the Introduction of an Incentive Bonus Plan with Participative Goal Setting.

• Increased motivation of mangers was directly tied to the introduction of monetary incentives

Managers were involved in setting goals, and meant but did not exceed goals

• Demonstrated positive motivations in other industries

Al-Nsour (2012)

Relationship Between Incentives and Organizational Performance for Employees in the Jordanian Universities

Relationship Between Incentives and Organizational Performance for Employees in the Jordanian Universities

Relationship Between Incentives and Organizational Performance for Employees in the Jordanian Universities

• Direct effect of financial and moral incentives on organizational performance

Financial incentives ranked 1st place, Moral incentives ranked 2nd place

• Concerns: Only 5 universities selected

• Strengths: Statistical analysis software & Five-Point Likert Scale

• Parallel indicated between business sector and the educational system

podgursky & Springer (2011)

Teacher Compensation Systems in the United States K-12 Public School SystemTeacher Compensation Systems in the United States K-12 Public School System

Teacher Compensation Systems in the United States K-12 Public School System

• Student test results and achievements in relation to current pay system

Top-performing teachers produced 3 x the achievement growth of low-performing teachers

• Paid based on education level and experience instead of performance

Incentive based programs only in areas where availability of teachers was low

leigh (2010)

Estimating Teacher Effectiveness From Two-Year Changes in Students Test Scores

Estimating Teacher Effectiveness From Two-Year Changes in Students Test ScoresEstimating Teacher Effectiveness From Two-Year Changes in Students Test Scores

• Correlation when teachers are offered incentives to work in less desirable schools their motivation will increase

Increased willingness of teachers to work in less desirable schools

• Large sample of over 10,000 Australian schools

Incentives are useful in increasing teacher effectiveness

kobakhidze (2010)

Teacher Incentives and the Future of Merit-Based Pay in GeorgiaTeacher Incentives and the Future of Merit-Based Pay in GeorgiaTeacher Incentives and the Future of Merit-Based Pay in Georgia

• Teachers were more motivated through non-monetary rewards over student performance based incentives

Teachers identified low pay as biggest problem in teaching profession

• Examined teacher motivation to remain in the profession due to low wages and poor working conditions

Global look at incentive based pay in developing countries

lavy (2009)

Performance Pay and Teachers Effort, Productivity, and Grading EthicsPerformance Pay and Teachers Effort, Productivity, and Grading EthicsPerformance Pay and Teachers Effort, Productivity, and Grading Ethics

• Where incentive based pay program was in place, the program had a motivation effect on teachers

Effects of the program on teachers’ pedagogy and effort

• Incentives were based on students’ test scores which increased

muralidharan & sundararaman (2011)

Teacher Opinions on Performance Pay: Evidence from IndiaTeacher Opinions on Performance Pay: Evidence from IndiaTeacher Opinions on Performance Pay: Evidence from India

• Positive attitude of teachers towards individual incentive based pay

Correlation continues to be positive and significant after controlling for several characteristics

• Teachers aware of their own effectiveness

west & mykerezi (2011)

Teachers Unions and Compensation: The Impact of Collective Bargaining on Salary Schedules and Performance Pay Schemes

Teachers Unions and Compensation: The Impact of Collective Bargaining on Salary Schedules and Performance Pay Schemes

Teachers Unions and Compensation: The Impact of Collective Bargaining on Salary Schedules and Performance Pay Schemes• Education and experience are poor proxies for

quality teaching skills

Teachers and unions not excited to implement an input based pay reward system

• If pay was based on student achievement, it would create an undesirable competition amongst teachers

conclusions

• The links between incentive based pay and teacher motivation are largely connected to corporate incentive based pay programs and employee motivation

Unintended complications of incentive based pay in schools: teachers may begin to lobby and compete for more successful students, motivations may fail, teachers may not buy in to the program

• Corporate and university incentive based pay programs have proven successful

Connection between HR policies and programs for teachers

limitations and recommendations

• Limitation of current research is the lack of research that reviews the effect of an incentive based program on teachers’ motivation

Focus on teachers who are working in an incentive based pay system

• Do incentive pay systems motivate teachers?

How are teachers motivated through incentive based pay systems?

relevance

• Current research does not address teacher motivation

Primary focus area should be how teachers are effected by incentive based pay

• Correlation between incentives and teachers motivation is inline with those of other industries