No relationship between performance pay for teachers and improved pupil achievement - OECD

TEACHERS’ PAY

No relationship between performance pay for teachers and improved pupil achievement - OECD

There is no clear link between average student performance in a country and the use of performance-based pay for school teachers, according to an international study by the Organisation for Economic Co-operation and Development (OECD).

The PISA study examines whether basing teachers’ pay on their effectiveness helps to improve an education system’s overall performance. It finds that while some high-performing education systems use performance-based pay, others don’t.

The reports says: “But the picture changes when taking into account how well teachers are paid overall in comparison with national income. In countries with comparatively low teachers’ salaries (less than 15% above GDP per capita), student performance tends to be better when performance-based pay systems are in place, while in countries where teachers are relatively well-paid (more than 15% above GDP per capita), the opposite is true. So for countries that do not have the resources to pay all of their teachers well, it is worth having a look at the experience of those countries that have introduced performance-based pay schemes.”

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Deciding whether to have a rewards-based pay scheme is only the first step

Even if performance-based pay is a viable policy option, the PISA study warns that it is crucial to know how to implement the system effectively.

The reports states: “Measures of teacher performance need to be valid, reliable and considered by teachers themselves to be fair and accurate. Some measures are based on multiple observations by trained evaluators using a standards-based rubric that teachers believe reflects good practices. Others include contributions to school-improvement efforts or performance in specific areas based on external certifications. Still others include student performance, which then requires data-management systems that can connect student and teacher data. In particular, if 'value-added' measures are used, databases need to be able to track student progress from year to year, to give an indication of what any individual teacher has added to a student’s achievement.”

A final word

“Performance-based pay is worth considering in some contexts; but making it work well and sustainably is a formidable challenge. Pay levels can only be part of the work environment: countries that have succeeded in making teaching an attractive profession have often done so not just through pay, but by raising the status of teaching, offering real career prospects, and giving teachers responsibility as professionals and leaders of reform. This requires teacher education that helps teachers to become innovators and researchers in education, not just civil servants who deliver curricula.” - PISA Focus 16, OECD, May 2012.

Want to know more?

Title: “Does performance-based pay improve teaching?”, PISA Focus 16, OECD, May 2012.

Availability: The report is available in PDF format at www.oecd.org/topic/0,3699,en_2649_39263231_1_1_1_1_37455,00.html.

The Programme for International Student Assessment (PISA) is an international study established in 2000. It aims to “evaluate education systems worldwide by testing the skills and knowledge of 15-year-old students in participating countries/economies”. Since its launch over 70 countries and economies have participated in PISA. For more details visit www.pisa.oecd.org.

OECD sates: “The mission of the Organisation for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world.” For more information visit www.oecd.org.