Describes the efforts of two educational institutions to reward teaching excellence using positive feedback rather than merit pay incentives. An Arizona district, drawing on Herzberg's motivation theories, offers highly individualized rewards ranging from computers to conference money, while an Illinois community college bestows engraved plaques…

Competency-based pay provides an incentive for employees to enhance their capacity for performing their jobs. Salary increases are not linked to past performance, but to future professional growth to meet increasingly higher expectations. Discussions to identify key teaching competencies must precede implementation. (MLH)

Because teacher pay is by far the largest part of most school districts' operating budgets (often 50 to 70 percent), it is compelling to ask if those dollars can be linked to improving teacher quality and, ultimately, student performance. Improving teacher quality means ensuring that: (1) All teachers have sufficient knowledge, skills and…