I've been reading on lots of other blogs about the various benefits / problems / issues with merit pay for teachers. Here's what I think.
First, teachers should get paid more for doing a more difficult job. It is more difficult to work in an urban school where the majority of children are below grade level. So I think we should get paid more for it. Take for example this scenario of two teachers. Both teachers are highly qualified under NCLB. Both teachers have been teaching for 5 years. One teacher works at School Without Walls teaching Honors Algebra 2 to 10th and 11th graders. The other teacher works at my school (i.e., a school with a whole mess of problems) teaching remedial Algebra 1 to 9th graders, many of whom live in group homes, have criminal records, are diagnosed with emotional disorders, and are several years behind. Which teacher deserves more money? Under the current system, they get paid the same. (Disclosure: the second teacher is me. Yes, I want more money for my job. My job is hard.)
Second, I think teachers should be paid more for doing a good job. "Doing a good job" can be interpreted in a number of ways. I think we need to look at a "Value-Added" system where we assess students at the beginning and end of a year to find out how much they grew academically. If the students made one year of improvement in one year, then the teacher did his/her job. If the students made less than one year of improvement in one year, then the teacher needs to be put on some kind of improvement plan (and if that doesn't work, removed from the school). If the students make more than one year of improvement in one year, then the teacher gets a bonus. The bigger the improvement, the bigger the bonus. Will this system of bonuses solve all the problems we face in public schools in DC? Of course not. But it's a start. And it might inspire some teachers to think outside the box. For example, I have one class this year that is a real struggle every day (my other classes are fine -- good test scores and good behavior). Right now, I have no external motivation to improve my difficult class. I am internally motivated to help them do better, but there are frequently days when their behavior is so disrespectful that I don't want to help them. There are honestly days when I think, "I can just wait this out until the semester when classes change and they'll be someone else's problem." Now, if I thought that the poor results in this class could prevent me from receiving a bonus at the end of the year, I would probably have more motivation to work to improve the class.
Third, principals need to be involved in the merit pay system, because they can provide input regarding the challenges the teacher faced in the classroom. A teacher who has a large number of students with learning disabilities, for example, might have a lower bar for a bonus than a teacher who had no students with learning disabilities. It is possible to work really, really hard and still not make huge gains with students. Principals know this, and should be able to provide input.
In every other industry in the world, a job that requires more expertise, skill, and training pays higher. In every other professional organization in the world, supervisors have yearly performance reviews with their staff, and usually this results in a new salary in the new year. A system like this will require both administrators and principals hold themselves accountable for results, and help inspire teachers to go the extra mile for their students.