Advantages And Disadvantages Of Performance Pay For Teachers

Many people wonder if teachers should or should not get paid more than they do. A lot of people believe that teachers should get paid more, but there are some that do not. Parents that want their kids to have a good education want teachers to get paid more. For example, P.V Derkachev said, “… teacher pay influences the quality of education.” (Derkachev 574). Teachers that get payed more would be more likely to perform better at their job and not mind the extra time that they have to do stuff outside of work to get everything done. Matt Barnum said, “Higher salaries --- even small bonuses ---- can and do keep some teachers in the classroom, and likely improve outcomes for their students.” (Barnum). The student is going to get taught better if teachers get paid more because the teacher will want to teach at the best of her ability which will help the student.

In the case presented both AFLAC and L.L. Bean had their own distinctive ways of utilizing their products in order to enhance the total compensation for its employees. The factor that has deterred more employees away from their current employer is that of benefit packages, and reward systems. As stated by () “compensation affects a person economically, sociologically, and psychologically. For this reason, mishandling compensation issues is likely to have a strong negative impact on employees and, ultimately, on the firm’s performance” (p.313). Many felt just a bump in pay wasn’t enough to substantiate their hard work or the efforts that the performance efforts provided to their organization. As stated by () “the right total rewards system a blend of monetary and non-monetary

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

Merit pay is a short-term, pay-for-performance plan, with a typical life span of three to four years, in which employers provide rewards, usually in terms of a raise for past performance, for employees who perform their jobs effectively, which will lead to higher performing employees which will in turn lead to a better work environment and higher overall productivity. The concept of merit pay is most often mentioned in the context of educational and/or government civil service reform. With a merit-based pay system, the employer pays, with the idea that the employer will reward more productive employees with merit increases. This concept came about in an attempt to sustain high performance levels in the workplace linking merit increases, or increases in base pay, to employee performance ratings, which are taken at the end of a performance year, usually by a direct supervisor. Due to the ever increasing changes of supply and demand in business, in order to remain feasible, the merit pay system is expected to change consistently with the needs presented to the companies, whether it be foreign competition, consumer demands, producer limitations, etc.

For the most part, a company’s compensation policy aims to ensure that employees are compensated in a fair and competitive manner. However, the compensation objectives employed by different companies can vary widely. This is especially true when taking into account wages vs. skills, competitor salaries, pay-for-performance, and other elements of compensation, like overtime, incentives, etc. (Snell, Morris, & Bohlander, 2015).

There is no way to find out faculty such as, “School counselors, librarians, art teachers, and special education teachers” (Orlowski and Spooner). There is no possible way to judge these teachers' salaries because they do not have teachers. Therefore, they do not hold tests to determine the pay. If merit pay is at work at a school, “fewer educators (will) want to work in these important positions” (Orlowski and Spooner). People wanting to work in these positions may back out because they do not know how they are going to get their pay. This leaves people who want to work in a job like this in a state of

In today’s society one of the most important factors in selecting a career field is rate of pay. No matter whether the profession maybe, the dollar figure must be within a range that allows the employee to maintain a substantial lifestyle. The debate of teacher pay scales has raged on for years. Many argue that the current pay scale for teachers is a scale which rewards teachers merely for seniority. They argue that the current pay scale overlooks those educators which demonstrate exceptional performance. Teacher merit pay systems have been the most popular suggestions made to remedy the problems seen with the current pay scale. Although the current pay scale may not be completely effective, the idea of

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but

Andrew G. Biggs and Jason Richwine states that average public school teachers have paid too much than the private sector including the fringe benefits. They mentioned it was an inefficient fee for taxpayers. And Lisa Snell point out the fact that in the elementary and secondary school teacher increased a lot than before. And it creates a problem that too many teachers work because of the salaries. She insists that the governors need to focus on pay for high-quality teachers instead of the number. However, C. Kent Mcguire does not have the same opinion as them and think teachers are not overpaid because it could maintain the high-quality teachers. People could not use the money concept to value the knowledge and skills.

This paper will examine setting the stage for strategic compensation and bases for pay. There are three main goals of compensation departments: internal consistency, market competitiveness, and recognition of individual contributions. Internally consistent compensation systems define the relative value of each job among all jobs within a company. (Martocchio, pg. 22, 2011) With this system companies want employees to be paid more based on their qualifications and responsibilities. They believe someone with less experience should be paid differently. To determine such evaluation companies use job analysis in order to provide job descriptions. The job evaluation is to determine pay according to a particular position. Market-competitive

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

O’Neil (1998) suggests six minimal criteria for the design of a performance based pay system. The first of these criteria is that the reward system should be self-funding, that is, the performance increases should as a minimum offset the cost of the rewards provided. The second criterion is that the distribution of the rewards must be consistent, fair and justifiable. In addition reward plans must be transparent and clearly communicated. The third criterion

Recognizing and rewarding high-performance is a key recommendation for any approach when managing any merit pay program (HRIS 2012). Merit pay is a compensation system where base pay increases and is determined by an individual’s performance. Using a merit pay plan is a good way for an organization to reward high performance is one benefit when using merit pay programs. The first step in implementing or improving a merit pay program is to have a solid performance management program, and this is another way a merit pay program is beneficial. Merit pay is a way to be successful and effectively implement merit pay with a uplift in salaries, and this is a third way using a merit pay program is beneficial to an organization. There are some drawbacks when using merit pay programs, such as paying some employees more than others. If you pay high-performing workers more than low- performing employees, the high- performers may stay, causing the low- performers to complain or leave the organization. A second drawback in using merit pay program is that employees become less motivated if not paid to their satisfaction. For example, if employees feel they should be making more money for their performance, this causes them to have low self esteem, and want to find employment at other organization. The last drawback associated with

Pay for performance is to link employees’ salary or salary increase to his or her performance. It seems to be a reasonable or attractive idea but it often does not work well in organizations. Please use at least 4 motivation theories or models to explain why pay for performance may not work as expected—particularly in government and nonprofit organizations.