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Exploring Performance Pay Systems in Education: Insights and Implications

This report, prepared for NZEI Te Riu Roa members in August 2013, analyzes the implementation and impact of performance pay systems in education. It examines the political, professional, and industrial context surrounding remuneration and recognition for educators. The report provides a comprehensive stocktake of existing performance pay models, evaluating their effectiveness and the implications for teaching staff and educational outcomes. This critical review aims to inform stakeholders about potential benefits and challenges in adopting such systems in the education sector.

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Exploring Performance Pay Systems in Education: Insights and Implications

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  1. Performance Pay Systems in Education

    A Report to NZEI TeRiuRoa Staff and Members August 2013
  2. Background to this report NZEI remuneration and recognition work Political, professional, and industrial context
  3. The Research A Stocktake of Performance Pay Systems in Education Dr Elizabeth Kleinhenz Australian Council for Educational Research (ACER) Submitted to NZEINovember 2012
  4. Performance Pay Merit pay: real estate, sales, finance Simple, repetitive work Obsolete ‘carrot and stick’ thinking ‘Ineffective for creative, conceptual, complex work’ (Daniel Pink)
  5. Performance Pay Merit pay has undesirable outcomes Diminished intrinsic motivation Lower performance Less creativity Unethical behaviour Short term thinking
  6. Performance Pay Value Added Modelling Attempts to factor in external influences: socioeconomic status ethnic diversity Still uses student data to measure teacher effectiveness
  7. Research Findings Performance pay doesn’t work No increased student achievement in USA, Sweden and Portugal No relationship between average student performance and performance pay schemes for teachers – PISA/OECD Best performing countries do not have performance pay schemes
  8. Research Findings Knowledge and skills approach good Focus is on what teachers bring Uses professional standards or criteria Creates a viable career pathway Can lack consistency without external moderation
  9. Research Findings Professional certification best Uses professional standards or criteria Made more robust through independent moderation Considered most accurate Most suitable for complex work Most trusted by professionals
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