Performance-based pay is worth considering in some contexts, but making it work well can be a challenge, according to a recent PISA in focus review, which looks at the effects of performance-based pay for teachers on pupil performance. It shows that in countries with comparatively low teachers’ salaries in relation to national income, using performance-related pay results in better pupil performance, while in countries where teachers are relatively well paid, the opposite is true.
The report also highlights challenges to making a performance-based pay system work well, and the need to have valid measures of performance in place if the system is to be fair and accurate. It emphasises that pay can only play a part, and countries that have made teaching an attractive profession have done so by raising the status of teaching and offering real career prospects, and not through pay alone.
Source: Does performance-based pay improve teaching? (2012), PISA in focus, 12