Performance Pay: Georgia

Retaining Effective Teachers Policy

Goal

The state should support performance pay but in a manner that recognizes its appropriate uses and limitations.

Meets goal
Suggested Citation:
National Council on Teacher Quality. (2011). Performance Pay: Georgia results. State Teacher Policy Database. [Data set].
Retrieved from: https://www.nctq.org/yearbook/state/GA-Performance-Pay-9

Analysis of Georgia's policies

Georgia supports a performance pay initiative. Teachers "shall receive an increase in annual state compensation of 5 percent, beginning the school year following any year in which the students taught by such teacher earn a significant increase in average scores on the criterion-referenced test."  

Citation

Recommendations for Georgia

Consider flexibility for districts in defining criteria for performance pay plan.
Georgia should give local districts the flexibility to define specific criteria by which performance is rewarded.

State response to our analysis

Georgia recognized the factual accuracy of this analysis.

Research rationale

Research on merit pay in 28 industrialized countries from Harvard's Program on Education Policy and Governance found that students in countries with merit pay policies in place were performing at a level approximately one year's worth of schooling higher on international math and science tests than students in countries without such policies (2011). 

Erik Hanushek found that a teacher one standard deviation above the mean effectiveness annually generates $400,000 in student future earnings for a class size of 20. See Hanushek, Erik A. "The Economic Value of Higher Teacher Quality," National Bureau of Economic Research, Working Paper 16606 (December 2010).

In addition, numerous conference papers published by the National Center on Performance Incentives reinforce the need to recognize the limitations and appropriate uses of performance pay. See: http://www.performanceincentives.org/.