Education of Supply and Demand: An Exploratory Study of the Impact Performance-Based Pay Has on Teachers in Title I Schools

Abstract

In the last two decades, district leaders have prioritized financial incentives for educators to solve teacher mobility and quality disparities in low-income schools. In addition, the Wing Institute has projected that in 2025, U.S. schools will not have enough teachers for the increasing number of students. State and local school districts have experienced difficulty attracting and retaining quality teachers and have begun implementing policies intended to reform compensation plans. This study’s purpose was to examine the impact performance-based pay (PBP) had on the motivation of teachers in a Title I school. Research reveals multiple contributing factors influencing the intrinsic and extrinsic motivation of teachers, yet the research on the effectiveness of performance-based pay remains inconclusive. This multi-method case study included 54% of eligible teachers from a Title I school in a large suburban school district. The quantitative phase included participant surveys based on an adapted version of the Wells (2011) instrument with open-ended response questions. The qualitative phase consisted of interviews with three survey participants who were veteran teachers at the school. The findings of this study illustrated that the impact of financial incentives such as PBP is inconclusive. Statistical analysis of quantitative data revealed that the participants had overall neutral beliefs regarding the impact of PBP, yet teacher actions exposed pay as a motivator. In addition, while respondents perceived PBP negatively to the school’s climate, the quantitative results identified that teachers believed that there were positive behavioral changes in their peers’ interaction with students because of the external reward of PBP. In addition, the qualitative interviews among veteran teachers illustrated a strong dislike for PBP. The study’s results demonstrated variable teacher feelings toward the influence of PBP on teacher motivation. As a result, the researcher urges future research to include a broader range of participants/sites from multiple districts, to further uncover the impact PBP has on teacher motivation in Title I schools.