Rewarding Teachers for Students' Performance: Improving Teaching through Alternative Teacher Compensation Programs. Education Policy Brief. Volume 3, Number 5, Spring 2005

Do teachers' salaries reflect their ability to teach effectively? This is an important question given that teacher salaries account for approximately 37 percent of total education expenditures across the United States. Furthermore, the objectives of the "No Child Left Behind Act (NCLB)" for increased student achievement and the presence of a highly qualified teacher in every classroom have drawn attention to this issue. In an effort to maximize the return on the investment in teachers, states and school districts across the country have experimented with a variety of teacher compensation methods, including linking teacher pay to student performance. Performance-based pay is not a new concept, but it is one that is receiving increased attention across the country. Indeed, many states and school districts are exploring alternatives to the single-salary structure to improve teacher quality and enhance student achievement. This "Education Policy Brief" examines alternative teacher compensation programs and career ladder programs aimed at recruiting and retaining highly qualified teachers. It also highlights performance-based compensation programs in use in Indiana and other states across the country. A brief list of Web resources concludes the brief. [This document was produced by the Center for Evaluation & Education Policy.]