Performance Pay For Everyone

Someone sent me this letter purportedly from Arne Duncan about the new performance pay system that's being put in place, which includes principals and administrators not just teachers.

But that's not all.  The letter also outlines wholesale changes in administrative salaries to align them and attach them to performance measures, mentions a new org chart that I hope someone will share with the board, and announces that there will no longer be across the board salary raises (or not) like there have been in the past.

Talk about a brave new world.

UPDATE:  Here's some more explanation to go along with the letter (below):
Download comp_plan_announcement.pdf, Download PayPerformance.pdf

Dear Administrative Employee:

 

 

Yesterday,
the Board of Education approved a new salary system for central office
employees that will directly affect you and your career here at the
Chicago Public Schools.  Our goal is to reward all of you who work
hard.  It offers you a chance to prove your value and gives your
supervisor a way to pay you accordingly.  Its called pay for performance and it is built on the very simple concept that hard workers deserve to be fully and fairly compensated for their efforts.

 

 

We
have also created a new organization chart (see attached) that will
help us operate more efficiently and clarify lines of authority so we
all know who is directly responsible for the work in the central
office.  Our larger goal is to be as efficient as possible downtown so
we can be as effective as possible in the classroom and do the best job
we can of supporting our principals and teachers.

 

 

On November 20th and 21st,
the Department of Human Resources will hold informational meetings for
employees in the board chambers to explain this compensation system.
On the 28th and
29th we will meet with managers,
also in the board chambers.  (We have attached to this memo a flyer
with details about the meetings.)

 

 

But
heres a little background for you to consider.  Historically
administrative employees have received the same annual cost-of-living
adjustments as teachers and other unionized employees.  At the same
time, raises were often granted by supervisors in an inconsistent
manner.  The result is that some long-time employees are paid more than
the going rate in the market for someone doing the same job, others are
paid less, and within CPS, two employees doing similar work are paid
different salaries.

 

 

Due
to our continuing budget woes resulting from underfunding by the State
of Illinois, CPS eliminated across-the-board raises this year for all
central office employees earning more than $40,000.  You probably also
remember that last year, administrators received just 2% raises even as
teachers got the 4% raises specified in collective bargaining
agreements.  There were also no promotions last year as we began the
compensation analysis and review.

 

 

To
bring our compensation system in line with the market and make it more
internally consistent, we painstakingly evaluated every single
administrative job from secretary to CEO compared them to the
market and established a set of pay bands that every employee must fall
within.  All salary changes will be communicated verbally by
supervisors.  Heres how it affects you:

 

 

n If
your salary is below your pay band it will be boosted to the minimum
level effective September 1, 2006.  Your new salary will be reflected
in your next paycheck and retroactive payments will be made on December
15.

 

n If
your salary is above your pay band your salary will not be reduced but
it will remain the same until your pay band catches up with you.

 

n For all other employees, your salary will remain the same for the rest of this year.

 

 

For
all employees, you and your supervisor will work together to establish
clear work goals and performance measures for the current year.  At the
end of this year, your supervisor will evaluate your work and decide if
you have earned a raise or a promotion.  There will be no more annual,
across-the-board raises for administrative employees.

 

 

Whether
you run a major department or work as a part-time intern, you play a
key role in our school system, helping support teachers and principals
as they do the hard but essential work of educating students.  You
deserve to be fairly compensated.  With a school system as large as
ours, we need everyone on the team working hard and working together on
behalf of the children and families of Chicago.  This new compensation
system should inspire all of us to work harder and create a culture of
excellence that helps attract great people to work in public
education.  Ultimately, because of your hard work, it will bring us
closer to our goal of creating the best urban school system in
America.  Thanks so much for your help, your dedication and your
commitment.

 

 

Sincerely,

 

 

Arne Duncan

 

Chief Executive Officer

 

Chicago Public Schools

Filed under: 125 S. Clark Street

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