Faculty Compensation and Benefits

1. Faculty Compensation and Benefits Trends Worldwide

2. FACULTY COMPENSATION Confidential: Intellectual Property of Littleford & Associates Trends Worldwide Compensation Theory and Practice Mission and Culture Benefits Options Salary Systems Compensation Levels Funding Methods

3. Trends Worldwide Confidential: Intellectual Property of Littleford & Associates New for profit schools are seeking the best and paying “top dollar” Fewer qualified candidates in the marketplace Higher starting, mid career and senior level salaries

4. Trends: Aggressive Recruitment Confidential: Intellectual Property of Littleford & Associates Schools are competing against one another for capable young teachers The most mobile group are those with 3-5 years of experience, and who are ready to move where the money and working conditions are the most competitive

5. Compensation Theory Confidential: Intellectual Property of Littleford & Associates Teachers are not risk takers. They are care givers Teachers want absolute predictability of future earning power, thus “scales” appeal to them. Teachers also want to know HOW to influence future earning power.

6. Compensation Practice I Confidential: Intellectual Property of Littleford & Associates • Teachers have learned how to influence future earning power through: • more steps due to more years of service • advanced degrees and graduate credits • extracurricular, coaching activities • stipends, positions of responsibility • titles or administrative positions • extra course load

7. Comparisons Confidential: Intellectual Property of Littleford & Associates Teachers care most about comparing themselves to what other high end area private and/or public schools are paying If teachers are paid “enough” in their minds, they do not care greatly about the “salary delivery system”

8. Comparisons II Confidential: Intellectual Property of Littleford & Associates If teachers do not feel well paid, they care very much about the equity of distribution and usually want a scale. Most independent schools either have a scale similar to a public school model that has been gerrymandered over time; OR A discretionary model fraught with “deals” and exceptions and a long “tail”

9. The Four Elements of a Salary and Benefits System Confidential: Intellectual Property of Littleford & Associates 1.The philosophy of compensation often overlooked: KEY- should be mission driven 2. Salary delivery system follows from philosophy, often overlooked 3. Cash levels: usually a percentage increase 4. Benefits: Providing flexibility based on age, experience and family status.

10. The Correct Approach: Mission Driven Compensation Confidential: Intellectual Property of Littleford & Associates Administration and boards must focus not just on the amount of money paid but if the delivery system will attract, retain and rewards teachers who resonate with the school’s mission Administration must review HOW the money is paid out, not just in percentage or in dollar terms, but how each group of teachers benefits overall relative to the others

11. The Importance of Dialogue and Engagement The “intellectual dialogue” of teachers, trustees and administrators about the relationship between school mission and salary philosophy is key Littleford & Associates can facilitate this dialogue

12. Myths Vs Realities • Independent school faculties are assumed to be collegial and collaborative. Most school cultures are not. • Schools often have “feudal” and/or passive/aggressive cultures. • These may develop along department or other lines. • Most evaluation/appraisal and “creative” salary systems do not function well in practice.

13. The Importance of Culture Salary systems, if mission driven, strive to nurture, support, enhance and reward the desired culture. If salary systems are mission driven, teachers are reaching for the school’s goals together.

14. The Importance of Culture II Teachers will leave after 3-5 years if salaries/benefits are too low, responsibilities are not increased and if the school culture and climate are unhealthy It takes only 5 out of 60 teachers to create an unhealthy climate

15. Salary Compression Confidential: Intellectual Property of Littleford & Associates The strongest salary systems pay two and one half times at the top what they pay at the bottomi.e., a starting salary of $40,000 should deliver a high salary of AT LEAST $80,000 (excluding administrators) Schools need to have a bump in mean salary from one, five year experience “cohort”, to the next Schools may overlook the fact that their more experienced teachers may actually be going DOWN in mean salaries from one cohort to the next

16. Bottom Bell Confidential: Intellectual Property of Littleford & Associates Most independent schools recruit young teachers and lose the talented ones within 3-5 years Mid career teachers are the most difficult to recruit, and they are often among the least happy in their jobs. Early buy out plans may be needed to assist some long term teachers with retirement

17. Inexpensive Creative Benefits Public recognition of service Financial planning or other pro bono personal services Recruitment bonus (one-time) Effective use of PD money

18. Compensation Methods Bonus plans based upon evaluation of teaching performance in the classroom, workload assessment, performance outside of the classroom and leadership traits Bands and ranges such as instructor, teacher, experienced teacher, senior teacher, and faculty leader or gradations

19. Rewarding Excellence through Bands and Ranges Bands may include permanent jumps in base, plus bonuses Rewards are not “merit” or competitive but could be performance based when measured against mission: for individuals or teams or groups

20. Bands and Ranges II Provide the school with the ability to pay its most valued teachers Enable teachers to know HOW to influence future earning power May also reward groups of teachers or teams of teachers

21. Evaluating Excellence A common misconception among heads and teachers is that professional growth and teacher accountability are either incompatible objectives or goals that must be accomplished separately. Teachers’ biggest criticisms about evaluation are that it is either threatening and unfair or lacks substance for real growth.

22. Evaluating Excellence II Teachers will not fear evaluation if they are involved in the development of the criteria by which they will be evaluated AND if the process is consistent, and honest.

23. How to Find the Money:Analyze Your “Sacred Cows” Raise tuition Make raising teacher salaries one of the Annual Fund Goals Profit Centers: Explore them! (Busing, food service, school stores and Internet courses can make big money! Launch an endowment campaign

24. How to Find the Money II Increase Class Size: Smaller is not necessarily better Increase School Enrollment Control and be creative with benefits and the salary delivery system: Resist the urge to add “steps” and beware the slippery slope of stipends

25. Consider A Banding Model Faculty desire for recognition: range of forms The importance of the head’s “political capital” Timing is everything!

26. Conclusion Confidential: Intellectual Property of Littleford & Associates The Chinese character, Ji-huey, means opportunity The challenge to find great teachers is also an opportunity to design salary systems that can attract and retain them

27. Global Issues - Local Solutions John C. Littleford 1-800-69-TEACH John@JLittleford.com www.JLittleford.com