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Workforce Incentive Initatives: Research and Evaluation

Comprehensive professional development systems for early and education personnel are accessible and based on a clearly articulated framework; include a continuum of training and ongoing supports; define pathways that are tied to licensure, leading to qualifications and credentials; and address the needs of individual, adult learners. Enhancing a spirit of lifelong learning is one goal of any professional development system. Similar to this goal, a professional development system itself is never a finished product and should continually evolve and be refined to best meet the needs of the population it serves.  

Within professional development systems there are several interconnected components. These components fall under five broad elements: (1) core knowledge; (2) access and outreach; (3) qualifications, credentials, and pathways; (4) funding; and (5) quality assurance. Additional information about system elements is available in the Early Childhood Professional Development Systems Toolkit, a resource guide for State/Territory policymakers developed by NCCIC. It includes definitions, overviews, State stories, selected resources, State examples, and planning tools and is available at http://nccic.acf.hhs.gov/pubs/goodstart/index.html.  

Note that this document is a companion to the NCCIC document Supporting a Skilled and Stable Workforce: Compensation and Retention initiatives. It includes examples of States that have compensation and retention initiatives. These examples do not include all States that have these initiatives, but are meant to represent a range of approaches States have taken to develop compensation and retention initiatives. NCCIC does not endorse any organization, publications, or resource.

Overview of Compensation and Retention Initiatives

Compensation and retention initiatives are designed to reward early childhood and school-age care professionals who complete training, attain credentials and degrees, and who exhibit commitment to the field of early childhood and/or their current workplace. Most of the initiatives require the individual to be working directly with children or supervising those who work directly with children. Some require a period of work history as a condition to apply. Most reward completion of early childhood education/child development training, credentials, or degrees more highly than general training and education. All include a graduated scale that provides increased stipends or salary enhancements based on increased levels of training completion, credentials, or degrees. Some initiatives require movement from one level to the next for continued eligibility. Some States have intentionally linked the wage incentives to their quality rating system. In Oklahoma, for example, working for a program with a specific star rating is required for some levels of the incentive program.

All initiatives face funding constraints. States take various approaches to managing funds. Some initiatives accept applications periodically, such as twice a year. Others have rolling enrollment and stop accepting applications when all funds are allocated. Minnesota awards funds through a competitive grant process. In the State of Washington, wage incentives are paid to the child care program on a monthly basis and passed along to qualifying staff in the form of hourly wage enhancements.

Many of the initiatives rely on a provider registry for documented evidence of training completion, credentials, degrees, and work experience. In many States, program participants must be part of a practitioner registry. Registry or career lattice levels are most often the basis for payment levels or wage increases.

Targeted recruitment efforts have been successful in enrolling underserved populations, such as those in rural areas, family child care providers, and non-English speakers. Reports of participation, education levels, and staff retention indicate that the sample initiatives have been successful in lowering turnover rates among participants, increasing educational levels (and wages via the stipends), as well as motivating participants to pursue ongoing professional development. However, there are differences in impact by type of provider and by current educational level of participants. Participation also varies by State and the status of the State's workforce, but there are clearly higher levels of participation at specific levels on the wage scales or career lattices. Many States have multiple levels and/or have revised their wage enhancement scales to include additional steps as a strategy to aid individual movement and reward progress. In addition, the studies clearly show a link between participation in wage incentive programs and participation in scholarship programs.

Evaluation and Program Report Findings

The following is a review of research and evaluation efforts related to workforce incentive initiatives. It is organized by the following topics: participation demographics, educational levels/professional advancement, retention, and notes on the "tipping point." Research citations are provided at the end of the document.

Participation Demographics

  • California Compensation and Retention Encourage Stability (CARES) and WAGES initiatives:
    • There were 40,000 participants in county programs with an investment of $240 million;
    • Forty-seven percent of participants were Caucasian;
    • Twenty-six percent of participants were Latino;
    • Fourteen percent of participants were African-American; and
    • Thirty-four percent spoke a language other than English.

  • Georgia INCENTIVES:
    • Seventy-eight percent were teachers or assistant teachers;
    • Ninety percent worked in a licensed child care center;
    • Sixty-seven percent were African-American;
    • As of Fiscal Year (FY) 2006, $8.77 million has been awarded to 4,650 people;
    • Approximately 75 percent worked in programs that served populations consisting of at least 25 percent subsidized children; and
    • Nearly 50 percent worked in nationally accredited programs.

  • Illinois Great START (Strategy to Attract and Retain Teachers):
    • Eighty-six percent are employed in child care centers;
    • Fourteen percent own and operate a family child care or group home child care business;
    • More than 8,000 eligible providers received at least one supplement, averaging $1,600 annually per recipient; and
    • Ninety-nine out of 102 counties in Illinois have had at least one Great START recipient since program inception.

  • Rewarding Education with Wages and Respect for Dedication (R.E.W.A.R.D.)™ Wisconsin:
    • Sixty percent of participants were teachers;
    • Seven percent of participants were family child care providers;
    • Eighty-nine percent were Caucasian;
    • Six percent were African-American;
    • Two percent were Hispanic;
    • 1.3 percent were American Indian; and
    • Most of participants had between 0 and 10 years of experience.

Educational Levels, Specialized Training in ECE, and Professionalism

  • California CARES:
    • Participants generally exceeded program requirements in the amount of education they received; and
    • Despite ongoing barriers in local and State education and training systems, participants were highly motivated to pursue education and training.

  • Georgia INCENTIVES:
    • From 2002—2006, 11.4 percent of INCENTIVES participants (working full time) increased their educational level;
    • Sixteen percent were enrolled in courses at the end of FY 2006;
    • Forty-eight percent held a Child Development Associate (CDA) or Technical College Certificate;
    • Twenty-four percent held a 2-year diploma;
    • Eighteen percent held an Associate's degree; and
    • Ten percent held a Bachelor's or Master's degree.

  • Illinois Great START (based on a study of the first 3 years):
    • Twenty-six percent held a CDA;
    • Seventeen percent had some college;
    • Forty-three percent had an Associate's degree in early childhood education (ECE);
    • Eighteen percent had a Bachelor's or Master's degree in ECE; and
    • Ninety-eight percent of participants felt more valued as a professional because of Great START.

    By the 5th year of the initiative, a report of participation revealed that 77 percent of all providers had an Associate's degree or higher, with at least 15 semester hours in ECE/child development courses.

  • The North Carolina Child Care WAGE$® Project:
    • Eighteen percent of program participants moved up a level during the 2004—2005 program year; and
    • Twenty-nine percent submitted additional coursework.

  • The Washington Career and Wage Ladder:
    • Participants were more likely to have specialized early childhood training than staff employed at comparison programs;
    • Career Ladder teachers were more likely to have CDA credentials;
    • The average educational level was higher at pilot than comparison programs;
    • Significantly more pilot participants pursued ECE coursework, STARS training, and the CDA than those at comparison programs;
    • Newly hired staff at Career Ladder centers had significantly higher levels of education than new staff hired during the same time period at comparison centers; and
    • Directors at pilot programs reported significantly higher levels of employee morale because of the program.

  • R.E.W.A.R.D. Wisconsin:
    • Thirty percent of participants were at Registry Level 9, Associate’s degree in ECE;
    • Twenty-eight percent of participants were at Registry Level 11, Bachelor's degree in ECE; and
    • Thirty percent of participants were also T.E.A.C.H. (Teacher Education and Compensation Helps) Early Childhood Project ® recipients.

Retention

  • California CARES:
    • Ninety-six percent of participants remained in the field 12 months after joining the program;
    • Ninety-three percent remained after 18 months; and
    • Participants were more than twice as likely to be working in the same workplace over a 2-year period than nonparticipants were.

  • Georgia INCENTIVES:
    • In FY 2006, there was an 85 percent retention rate.

  • Illinois Great START:
    • There was a 13 percent attrition rate in FY 2003.
    • Ninety percent indicated that Great START made them want to stay in their current position;
    • Those with an ECE degree were most likely to want to stay in their current position; and
    • For those considering leaving their jobs, prior to participation in Great START, 60 percent indicated salary as the primary reason. After participation in Great START, 24 percent indicated salary as the primary reason, and 40 percent indicated working conditions was the primary reason.

  • North Carolina Wage$:
    • The statewide turnover rate for WAGE$ participants was 16 percent compared to the 2003 overall rate of 24 percent.

  • Washington Career and Wage Ladder (The Career and Wage Ladder was a pilot and discontinued. Results are from the final evaluation of Phase 2.):
    • New hires in pilot programs remained in the position significantly longer than comparison programs;
    • Retention was positively related to wage level; and
    • Retention rates were much higher for those with early childhood education.

  • R.E.W.A.R.D Wisconsin:
    • There was a 6.7 percent turnover rate among participants

Notes on the "Tipping Point"

  • California CARES and WAGES initiatives:
    • Lowering the eligibility requirements, for example from 12 units of college course work to 6 units, increased participation of family child care providers. Adding a pre-entry level that requires only training also helped.
    • Higher salaries and benefits for more qualified staff are more important when the economy is strong and unemployment low. The child care workforce is more stable during economic downturns.
    • Variations in philosophies drive program designs. Some counties sought to engage all members of the workforce in professional advancement. Other counties sought to reduce the gap between child care salaries and those in related fields, such as elementary education.
    • The size and characteristics of the local or statewide workforce influence levels of education required and stipend amounts in different models.
    • The programs served as a catalyst for substantial increase in the training and education of the workforce and for a variety of improvements in the local professional development infrastructures.
    • Community partnerships resulted in a better understanding of the gaps in education and training, resulting in more courses aligned with the Child Development Permit Matrix and more course offerings. Two strategies fostered these results:
      • Requiring participants to obtain a Child Development Permit; and
      • Requiring participation in professional growth advising.
    • Strong leadership can have an affect on the way incentive programs are implemented and funded.

  • Georgia INCENTIVES:
    • Wages increased an average of 2 percent at the certificate level;
    • Wages increased an average of 3.8 percent at technical college diploma level;
    • Wages increased an average of 6.3 percent at the Associate's degree level; and
    • Wages increased an average of 7.6 percent at the Bachelor's degree level.

  • Illinois Great START:
    • Center directors and other providers were the primary sources of information about the program.
    • Those new to the field and those without degrees were more likely to report an interest or intent to pursue more education. In addition, family child care providers and those who entered the program the 3rd year were more likely to indicate they would pursue additional education.
    • By year 3, 25 percent indicated they were enrolled in a course, 20 percent had completed a course, and nearly 18 percent had pursued a credential.
    • Sixty-five percent of those enrolled in a course pursued additional education to move up on the Great START scale.

  • The Washington Career and Wage Ladder:
    • A comprehensive policy that addresses education as well as wage and benefits is most likely to be effective in supporting retention.
    • Having an even small number of early childhood credits is related to higher retention.
    • There was little educational gain over the period of the project; significant changes take time. Hiring more educated staff may be more effective.

Evaluations and Reports Cited

Study of Multiple Programs

  • Building a Stronger Child Care Workforce: A Review of Studies of the Effectiveness of Public Compensation Initiatives (November 2002), by Jennifer Park-Jadotte, Stacie Carolyn Golin, and Barbara Gault, Institute for Women's Policy Research, reviews and evaluates seven programs designed to improve the compensation of the child care workforce. The programs include Alameda Child Development Corps (California CARES), Child Development Program, Caregiver Pay Program (U.S. Department of Defense), Georgia Early Learning Initiative, T.E.A.C.H. Early Childhood Project (North Carolina), Child Care WAGE$ (North Carolina), Washington Early Childhood Education Career Development Ladder, and the Wisconsin Child Care Mentor Project. The report is available at www.iwpr.org/pdf/CCW.pdf.

    The following are selected findings:

    • Increased education translated into bonuses or pay raises that were in some cases beyond expectations.
    • The authors were unable to determine the effect of varying stipend amounts across programs.
    • Increasing compensation at a steeper rate for higher level staff may encourage all participants to seek further education. However, senior staff members are less likely to leave a job, although when they do, it has a harsher effect on the program.
    • Because starting wages are so low, even with wage incentives, it may be worth re-evaluating programs that do not significantly increase wages at the lower end of a career ladder.
    • Compensation programs were successful in establishing the connection between increased education and increased compensation.
    • Education and training changes were dependent on occupational supports (e.g., paid leave to attend classes, scholarships, etc.), education/training being a criterion for participation, and pay levels being linked to education and training.
    • Some State and communities benefited from using a number of coordinated compensation initiatives (e.g., WAGE$ and T.E.A.C.H Early Childhood).
    • Changes in education are probably not observable in the course of a pilot or 1-year project.
    • Two projects reported increased educational levels in new hires, suggesting that higher pay scales attract higher quality applicant pools. This could result in reduced ongoing training costs for less skilled hires.
    • Compensation initiatives increased staff stability.
    • Increases in compensation linked to increases in education, training, or responsibility appear to be very important in the child care labor market.
    • Compensation increases did not have to be very large to have an effect. Participants may already be motivated, so small increases encourage them to improve and remain in their jobs.
    • Setting higher standards may lead to staff turnover, but some programs felt that the loss of unmotivated staff was not always negative.
    • Professionalism increased as the result of participation, including the following:
      • Increased skills with children, parents, and leadership;
      • Increased advocacy skills with parents and policymakers; and
      • Increased likelihood of viewing work as a rewarding career that provided a living wage for specialized skills.
    • The infusion of funds into a community for scholarships or to award increased education provided funding to the community colleges and universities, which in turn increased programs to meet demand, expanding opportunities for others.
    • Strong initiative leadership was a key factor in successful implementation.

Related Resources

  • The Early Care and Education Teaching Workforce at the Fulcrum, An Agenda for Reform (2008), by Sharon Lynn Kagan, Kristie Kauerz, Kate Tarrant, Teachers College Press, explores the demographics of, knowledge base of, and strategies to improve the teaching workforce.

  • The T.E.A.C.H. Early Childhood & Child Care WAGES Projects, 2005-2006 Annual Program Report (2006), by Child Care Services Association, provides the most current T.E.A.C.H./WAGE$ data. This report is available at www.childcareservices.org/_downloads/TEACH_annual_report_06.pdf.

  • The Early Childhood Education Career and Wage Ladder: A Model for Improving Quality in Early Learning and Care Programs (July 2004),  by Jennifer Moon and John R. Burbank, published by the Economic Opportunity Institute, describes the implementation and evaluation of the Washington State Early Childhood Education Career and Wage Ladder. This report is available at www.econop.org/early_learning/reports/ECELadderModelImprovingQuality-Jul04.pdf.

  • Supply, Demand and Accountability: Effective Strategies to Enhance the Qualify of Early Learning Experiences Through Workforce Improvement (March 2004), by Richard N. Brandon with Juliet P. Scarpa, University of Washington, includes an extensive analysis of State wage incentive programs. The paper is available at www.hspc.org/publications/pdf/SupplyDemandAccountability.pdf.

Updated August 2008

 
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