The Persistent Problems and Confounding Challenges of Educator Incentives

Abstract

While education accountability systems emphasize teacher quality as a prerequisite for student learning, education administrators have struggled to staff low-performing schools with effective teachers. Fueled in part by the federal Teacher Incentive Fund, compensation reforms have gained center stage status among strategies aimed at improving human capital in schools. This article presents findings from a formative evaluation of the initial year of implementation of the Financial Incentive Rewards for Supervisors and Teachers (FIRST) program in the Prince George’s County Public School System. Our review of the relevant theoretical and empirical literature on financial incentive systems in public school systems identified four sets of implementation challenges: securing and maintaining stakeholder support; developing and implementing accurate and credible measures of educator performance; developing the district and site capacity required to implement and sustain the initiative; and aligning the reform with human resource goals, school improvement initiatives, and features of the work environment. Our field research on the formulation, implementation, and initial impact of the FIRST initiative demonstrates that even when an educator incentive initiative reflects “lessons learned” from the empirical and theoretical literature, challenges that undermine the initiative’s potential to realize its major goals persist. We argue that this case extends our understanding of the key challenges identified in the literature and we highlight implications for policy and research.