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Performance pay for teachers: linking individual and organisational level targets

Belfield, Richard and Marsden, David (2005) Performance pay for teachers: linking individual and organisational level targets. . Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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The introduction of performance-related pay and performance management schemes in the maintained, state, school sector represents a considerable change in the school management system. This paper combines the results of opinion surveys of classroom and head teachers with Department for Education and Skills school performance data to consider the operation and impact of the new system in England since 2000. We find that teachers’ response to the new system closely resembles that of other groups of public service workers to similar schemes. In particular, teachers appear not to be greatly motivated by the financial-incentive element of the system. However, the goal-setting and appraisal aspect of the system is steadily establishing itself in schools, and seems to be giving rise to a better alignment of teacher and school objectives and with those of nationallevel policy objectives. We present tentative evidence that improvements in goal setting within schools are positively related to rising pupil academic performance.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2005 D. Marsden and R. Belfield
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
L Education > L Education (General)
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J33 - Compensation Packages; Payment Methods
I - Health, Education, and Welfare > I2 - Education
M - Business Administration and Business Economics; Marketing; Accounting > M5 - Personnel Economics > M52 - Compensation and Compensation Methods and Their Effects (stock options, fringe benefits, incentives, family support programs, seniority issues)
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J45 - Public Sector Labor Markets
Date Deposited: 29 Feb 2008
Last Modified: 26 Apr 2021 11:53

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