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ERS Article Featured in School Business Affairs’ “The People Issue”

April 30, 2024

Written by Tara Anderson, David Rosenberg, and Ash Holland, “How a Strategic Compensation Model Can Promote Teacher Sustainability” offers actionable strategies for a pressing issue many districts are facing today: creating a sustainable and well-compensated teaching job. 

ERS was featured in the April issue of School Business Affairs, the Association of School Business Officials (ASBO) International’s monthly magazine focusing on topics related to school- and district-level finances, management, and operations. “How a Strategic Compensation Model Can Promote Teacher Sustainability” was one of several articles selected for the magazine’s issue, “Supporting Your Most Critical Resource: People.”

The article homes in on one critical factor central to previous ERS research on the teaching job: compensation. It argues that the traditional teacher compensation model—while seemingly a fair approach to acknowledging career growth—has both become a financial burden for districts and inadvertently created a compensation gap between teachers and similarly educated professionals.  

Amid persistent turnover and staffing shortages—particularly in districts serving primarily students of color and students from low-income backgrounds—investing in higher across-the-board teacher salaries is critical, but not the only or even most sustainable method to address the challenge. By strategically rethinking their current compensation models, the article argues, district leaders can encourage teacher retention, better support early-career educators, and create leadership opportunities for experienced teachers. 

4 Key Actions for Building a Strategic Compensation Model 

Creating a more dynamic, rewarding, collaborative, and sustainable teaching job requires district leaders to make transformative shifts. The article outlines four key actions that can help make a reimagined teaching job a reality. 

1. Increase Pay for Early-Career Teachers 

Our 2023 study of teacher turnover trends found that 23% of teachers across six districts left in their first three years—10 percentage points higher than those with 8-15 years of experience.  

During this early-career period, the article argues, larger incentives are beneficial to both the teacher and the district. Teacher effectiveness grows the most during their first five years, so by frontloading investment in early-career salary increases, reduced workloads, and developmental coaching, districts also invest in the long-term potential of those teachers.  

2. Focus on High-Needs Schools and Hard-to-Staff Subjects 

Our research indicates that high-poverty schools experience greater challenges with retention, causing students who need the most support to receive the least. By offering large enough incentives to retain effective teachers in these schools, the article points out, districts can ensure all students have equitable access to high-quality instruction.

3. Don’t Focus on Advanced Degrees 

Contrary to common practice, the article argues against prioritizing advanced degrees in teacher compensation. Drawing on multiple studies, the article notes that teachers without advanced degrees can be just as effective as those with them. 

As an alternative, district leaders can incentivize teaching effectiveness by creating career pathways that reward high-quality teachers by offering them opportunities for extending their work and impact. 

4. Create Leadership Roles—and Pay Teachers Well for Taking Them On 

The article also describes the benefits districts and teachers can glean from leadership pathways. When effective teachers take on leadership roles in addition to their classroom responsibilities, they’re able to extend their impact through professional learning or mentorship opportunities, which benefits both experienced and new teachers. 

These teachers need sufficient time to participate in these roles, however, which often requires leaders to restructure school schedules. Teachers also need pay that’s commensurate with their increased responsibilities. When district leaders invest both time and money in nurturing teacher leaders’ development, they also increase team satisfaction and retention. 

As we navigate the challenges of our educational landscape, the article reinforces, it’s imperative that we remain open to innovative solutions and strategic shifts. This article serves as a thought-provoking guide for reimagining teacher compensation and fostering a more sustainable model that benefits both educators and students alike. 

Read the full article here. 

Need help redesigning the compensation model in your district? Contact us below. 

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