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BOSTON, MA February 9, 2004 - A landmark study of pay for performance for teachers shows that linking teacher compensation to student achievement can trigger fundamental improvements in school systems. The report of the four-year study of the Pay for Performance pilot in Denver was just released by the Community Training and Assistance Center (CTAC).

The purpose of the pilot was to experiment with linking what teachers earn, in part, to what students learn. The pilot was jointly sponsored by the Denver Public Schools Board of Education and the Denver Classroom Teachers Association. It was implemented in 13 percent of the district's schools. In the pilot, teachers developed two annual objectives for the achievement of their students that required the approval of the principal. Teachers received additional compensation if they met their objectives.
 
 



"The pilot has demonstrated that the focus on student achievement and a teacher's contribution to such achievement can be a major catalyst for improvement - if the initiative also addresses the district factors that shape the schools," the study concludes. Moreover, the initiative "can provide a basis for improving the entire school system by tying district activities to core classroom needs."

"Pay for Performance is neither a silver bullet nor a magic wand," said William J. Slotnik, Executive Director of CTAC and a lead author of the study, "Rather, if implemented thoughtfully, it has the salutary effect of forcing a district to operate in a more effective and efficient fashion in support of student learning reform."

A central finding of the study was that Pay for Performance focused attention on the bottom line of improving student achievement, and on what needs to be done to help students and teachers be successful. As one teacher was quoted in the report, "With pay for performance, you don't forget the goals, and it is possible to be more consistent throughout the year."

The study found that students whose teachers had excellent objectives achieved higher scores, on average, than other students. In addition, students whose teachers met two objectives had significantly higher levels of student achievement. These findings held true at elementary, middle and high school levels.

As a result of Pay for Performance, teachers indicated that they have greater access to student achievement data and make better use of the data to set targets for students, to focus earlier on students in need of more assistance, and to monitor progress in the classrooms.

Pay for Performance also had positive impacts at the district level. It stimulated other parts of the school system to improve the quality of support and service, according to the report. For example, the district began tracking the achievement of students individually on a classroom-by-classroom basis, generating information that is critically important for guiding improvement efforts. Further, teachers and administrators indicated that Pay for Performance significantly increased the school and district focus on student achievement.

The study cautions that implementing this reform "place[s] demands on the district that may be surprisingly difficult to meet." School districts need to align and improve the quality of the curriculum, instructional delivery, supervision and training. Further, in order to ensure that pay for performance is fair to teachers, districts need to make sure that they have high quality assessments that can measure student progress based on what teachers are being asked to teach. This alignment is one of a long list of systemic reform steps that performance pay can trigger, as described in the 188-page report.

However, the report stresses that while implementing pay for performance can catalyze change, it should not be viewed as a panacea. "If it is adopted out of context, without being part of a serious and systematic reform agenda, its potential will be undercut," notes Slotnik.

The authors also caution that the manner in which pay for performance is implemented will affect the results of the initiative. For example, if imposed by district leadership without collaboration with teachers, the effort will "erode the potential to develop real accountability." Further, "Participants need to be convinced that the initiative is intended to be supportive of teachers, rather than punitive," according to the study. Among many other recommendations in the report, pay for performance should be implemented in phases, since "it will stretch the support capacities of a district."

Several previous attempts at performance pay for teachers have come up short, Slotnik said. "Some were based on the belief that compensation is the primary incentive for teachers to perform at high levels. Others were designed to punish teachers who were labeled as underperforming. Virtually all have been predicated on the idea that merit pay or its equivalent could be implemented without making major improvements in how the school district functions. But these have been faulty premises," he said. In contrast, "the Denver pilot was designed to reward teachers for results, and it was implemented in the context of other district changes," said Slotnik.

"The Denver pilot has provided a wealth of learning that will shape practice nationally," said Slotnik. "However, it is a mistake to think of it as the model to be replicated. Districts have to find what makes sense for their unique situations and conditions, taking into account what has been learned elsewhere."

In carrying out the study, the CTAC research team members analyzed more than 4.4 million data points related to student achievement and factors at the student, teacher, and school levels. They conducted surveys and examined responses from 2,870 teachers, parents, administrators and others. They also conducted and analyzed 615 interviews, and evaluated 4,012 teacher objectives.

Educational and political leaders - including the U.S. Secretary of Education and numerous governors - have been promoting the concept of providing financial rewards to teachers for improving the achievement of students, as a way to improve teacher quality and student achievement in the nation's struggling public schools.

Educational and political leaders - including the U.S. Secretary of Education and numerous governors - have been promoting the concept of providing financial rewards to teachers for improving the achievement of students, as a way to improve teacher quality and student achievement in the nation's struggling public schools.

The study was funded by Rose Community Foundation, The Broad Foundation, The Daniels Fund, The Sturm Family Foundation, Jay and Rose Phillips Family Foundation, The Denver Foundation, Donnell-Kay Foundation, and The Piton Foundation.

Click here for the full text of the study (1.11MB), where Chapter 10 focuses on the national implications of the study.

Click here for the executive summary (503KB).

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