Pay Plans Matter

I come from a family of entrepreneurs. As a child, I benefited from parents who talked to me about business, economics, and leadership. One of biggest lessons I learned early on?

Pay plans matter.

If an employee is underperforming or unsatisfied, there’s a good chance that the pay plan needs to be adjusted. Maybe they’re exhausted, feeling under-appreciated, and need a raise. Maybe they are salaried but would be better motivated by a commission-based pay plan. Maybe they should transition from hourly to salaried, or vise-versa. Maybe it’s not a matter of take-home income but of benefits or vacation time. The possibilities are endless.

While my parents drove me to school or soccer practice, we’d talk about pay plans; they’d tell me about decisions they were making with their teams, and they’d help me understand how the “business lessons” they were teaching me actually applied to life in general. When I was frustrated by my middle school classmates’ (and my own) apathy in history class, we’d discuss the “pay plan”: in exchange for perfunctorily completing uninspired, straight-from-the-textbook assignments, we received A’s. In contrast, when I stepped into the gym for athletics, we were all giving it everything we had, aware that there were consequences for our actions. Our coaches were not shy about doling out punishment, and of course, avoiding wall sits or running laps was good motivation to work hard and show respect—but the strongest motivator was wanting to make those coaches proud, to see the respect we felt for them mirrored back to us in their faces.

I myself am not big on punishing my students; I find natural consequences to be a much more effective and just motivator. I find that, when I feel tempted to punish a student, it’s because I failed to implement an effective pay plan. The first part of an effective pay plan is setting clear expectations. The second piece of the equation is establishing consequences—creating a system that incentivizes people to seek positive consequences and avoid negative consequences. The third variable in the equation is support—providing resources that allow people to reach for their highest potential. If my student didn’t complete her reading on-time, is it possible that I didn’t clearly establish my expectations? Did I explain the negative consequences of not doing the work (e.g., I and her classmates will feel disrespected, she will struggle to understand what we’re discussing on a given day, she will fall behind)? Did I clearly convey the positive consequences (e.g., Everyone will feel respected, we will have an interesting discussion, she will stay on-track)? Did I provide adequate support (e.g., help her put reading on her iCalendar, so that she has blocked-off time to get it done, ensure she can access the text digitally or via audio, set her up with an accountability buddy, thereby empowering two students to help each other?)?

I was recently speaking with a parent whose 10-year-old child was struggling to finish his math homework. This child, who lives with ADHD and is convinced that he is “bad at math,” would refuse to attempt problems that were even the tiniest bit difficult. “I’m just happy if he does one problem,” the parent admitted. I, of course, asked about the pay plan. What are the consequences when he fails to engage with his work? (He would be rewarded by the exasperated parent, who would tell him he could give up and go play video games.) What are the consequences if he tries? (He has to spend more time on math, leaving less time for video games.) What support are you offering him? (Too much “help,” sending a message that he’s incapable of attacking a challenge on his own.)

I suggested a different pay plan, with clear expectations (Math homework must be completed before bedtime every day, barring extenuating circumstances), clear consequences (When your homework is complete, you gain access to video games; your parents will be so proud of you for trying your hardest, regardless of the score you get), and support (access to a tutor/coach, designated time and space for math homework, appropriate encouragement as needed). With this pay plan, there is no exasperation, no teeth-pulling, no power struggle. There are no punishments or rewards; there are only expectations, consequences, and support.

Notice that, in both of the aforementioned scenarios, when the students were not meeting expectations, I did not lower them; the inclination to do that is natural, but it is a self-serving move on the part of the adult and is ultimately harmful to the student, sending a message of inability or limited potential. I’m reminded of a quote I’ve heard before: “Be stubborn about your goals but flexible about your methods” (source unknown). Our students deserve teachers and caregivers who are stubborn and flexible, as well as intentional, effective, supportive pay plans.

If you need help establishing a pay plan with a student in your care, book a free 15-minute introductory call with me today to discover if I can be of service.