by Richard Wilson Ph.D.

Created on: May 30, 2007

Public schools are not structured to effectively utilize a pay for performance model. Unlike a private sector organization, the public school does not have a profitable bottom-line and cannot raise additional revenue through expanding the business. There is no direct, immediate correlation between excellent teaching and school revenues to fund a performance pay system.

The National Research Council studied the federal civil service system and concluded that there is no compelling evidence that one appraisal format is significantly better than another; there is evidence that when performance ratings are used in the context of merit pay allocations, managers tend to inflate ratings; and, there is virtually no predictive validity of performance appraisal measures, tools, and approaches for measures of organizational effectiveness.

Pay for performance models anticipate that employee motivation is enhanced and the level of desired performance is increased when employees understand performance goals and view them as attainable using their skills and abilities within the context of the restrictions created by the organization; employees must see a clear connection between performance and pay increases that is consistently communicated and followed by the organization; and the pay increases must be meaningful to the employee.

Most public employees do not see a direct link between their performance and their pay. The reality is that performance rewards are only available if economic conditions generate sufficient revenues, the school board (or other governing body) agrees to appropriate funds toward teacher salaries, and the principal (or manager) says that merit was earned by the teacher during that particular rating period. Implementing pay for performance will no more attract the best and brightest to become teachers than it does sales staff to a car dealership.

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