Salary Scale information for

Center Based Programs

This section of the toolkit provides information about developing, revising, and implementing a salary scale in center based early childhood programs.

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What is a Salary Scale?

• A salary scale is a range of wages you pay someone to work in a particular job. The scale is designed to reflect an employee’s base salary for their education but might include other criteria such as skills, expertise, certifications, experience, or longevity. There can be different salary scales tied to different roles, too.
  

• The lower side of the salary scale shows how much you would pay someone who meets the minimum requirements for the role, while the high end is how much you might pay someone who meets more or all of your requirements.
• Ideally, a salary scale will also provide incremental steps that show how one can increase their pay based on that criteria over time.
  

• A salary scale should be aligned with the values and goals of a program and create equity among early educators.
• Not all salary scales will look the same, however we encourage you to include education as the foundation of your scale and include other criteria as you see fit.

Important Notes

SaLary scales only reflect wages paid directly to the teacher

In developing, revising or adapting a salary scale, salary additions such as stipends or bonuses should not be included in calculating the wage level. These are supplemental income and not part of the base wage. These amounts are not always consistent and can create unintended inequities among staff when factored into a scale. They are a good way to reward staff but are not considered wages.

Salary scales will require costs to be shared across multiple stakeholders

Programs rely upon various streams of funding and income sources. For many programs, parent fees are the majority of a program’s income. However, it is not expected that salary increases be covered by only increasing parent fees. The cost of implementing a salary scale can be shared between providers, parents, governmental bodies and local funds.

Salary scales can exist on a continuum of transparency

Wage transparency refers to the openness of communication about wages and/or compensation between an employer, their employees, and the public. Depending on the type of program, funding sources, and business structure, some early childhood programs might share salary scales publicly, some might share how salaries are determined with individual teachers, and some may not share much information at all. We also recognize not all administrators have access to budget or payroll information, although we recommend full wage transparency as best practice.

What impact will a salary scale have on the field of early education?

Our current system relies on funding from families, who can't afford to pay more, and other sources which together are not enough to cover the TRUE costs of providing high quality care. Historically, we continue to provide early care and education through paying or accepting wages that do not reflect the education or commitment, making creative budgeting decisions, and sacrificing different aspects of a high quality program.

As a result, teachers' pay is not competitive with K-12 systems and teachers may move around within the early childhood system for small increases.

Salary scales create fair and justifiable increases tied to specific criteria, serving as a reward and incentive, which is not currently built into NC’s early education system

Creating a salary scale determines what programs can pay and what a teacher can expect to earn for increasing their education over time

Teachers stay because they know how to earn more pay: salary scales encourage longevity as career pathways exist within their program

Creating parity with K-12 systems reduces competition between ECE and K-12 settings

Dedicating time and resources to develop professional career paths sends an overdue message to the workforce and the public...Early Childhood Educators are valuable!

How did we get here?

Policies were created to provide "mothers pensions" to incentivize staying home with children rather than seeking work outside the home. The pension typically did not provide enough income to avoid work altogether. African American women were denied benefits more often than white women, on the basis they were "accustomed to working for wages" and should not be encouraged to stay home.

The rise of the industrial era made the need for child care more visible, but most options were charitable and intended for the "poor," minorities, or immigrants. "Day nurseries" were created to meet the need for care outside of the home, but participating in these programs was typically stigmatized, largely seen as a "lower class" need.

In response to WWII, the Lanham Act provided child care for women to work outside the home. The need for child care did not end with the war, but the government did not continue to fund these programs when the war was over.

Recovery efforts after the Great Depression included government funding for nursery schools - but their first purpose was to provide work for unemployed teachers, cooks, and nurses rather than

addressing the need for child care.

1920 - 1930

Funding was extended briefly after the war to provide mothers "more time" to find alternative options. However, more women remained in the workforce rather than returning home.

A rise in developmental research began to shift the way day nurseries were operated and for what purpose. Studies informed families what children "need" to be well. This fueled the argument for why children of working mothers were "at risk," because working mothers surely couldn't work and provide for their children's needs at the same time.

The need for child care was higher than ever.

A popular research study, conducted on institutionalized children, led to the assumption that children should

1930 - 1950

not be separated from their mothers which continued to stigmatize the idea of group care.

In 1964, a panel of early childhood experts recommended the government fund preschool

Early childhood advocates worked in small pockets across the country, influencing legislation to provide universal child care.

1950 - 1970

programs based on developmental science to help "poor children achieve their potential." In 1965, Head Start was officially funded for this purpose. While Head Start policies mandated the importance of teacher education, there was no direct guidance for compensation.

Early care and education programs felt the struggle between meeting the needs of working families while hiring educated teachers to provide educational opportunities based on developmental research.

In the 1980's, federal funding for childcare was drastically reduced for low-income families, sparking the growth of private and non profit early childhood programs.

Long hours, high expectations, and low compensation were

all reasons early educators began collectively advocating

for more supportive work environments.

The standards explicitly address wages, benefits, and other teaching supports.

A worldwide pandemic, COVID-19, brought many of the issues early childhood educators have faced for years into the spotlight. While early educators

have always been "essential," they

were now called that publicly.

To combat the staffing shortages and budget fluctuations of this unknown territory, The American Rescue Plan Act of 2021 funneled a one time investment of $805 million dollars into North Carolina's early education programs. The purpose was to increase wages, help with recruitment and retention, and support programs to provide other benefits. These grants are slated to end in December, 2023.

While acting as a business, these programs still felt the pull between meeting the needs of working families through their operating hours yet providing educational opportunities based on developmental research.

What does this mean for the early childhood workforce?

Research shows almost half of the early childhood workforce is enrolled in some form of public assistance.

Infant and toddler teachers earn up to 30% less than teachers working with children ages 3-5.

Programs cannot always provide or maintain consistent pay increases, raising turnover rates as teachers shift between programs for a slight raise in pay.

Watch "Transforming the Early Education Workforce - Teacher Well-Being" from New America to see how research shows work environments and compensation are critical components for a stable, healthy workforce.

Salary scales can help change the future trajectory of the early childhood field:

Instead of:

Imagine:

Defining pay levels based on what the program can afford...

Not having a career path for teachers in your program...

Hoping a teacher applies that you can afford to pay...

Hoping your core values are maintained through staff training...

Struggling to give increases based on performance or achievement...

Paying teachers with the same education inequitably...

Calculating what you can afford to negotiate for new hires...

• Defining pay levels based on selected criteria and a career pathway
  
• You have a planning tool for your staff and the larger workforce
  
• Publicly posting a wage that clearly states what is being offered
• Incentivizing your core values by attaching them to wage increases
• Knowing the wage increase attached to performance or achievement
• Ensuring the same education and roles are offered equitable pay
• Experiencing a more sustainable financial future - as a result of knowing what you offer today and what increases look like in the future

Next topic: Where to begin: The process of creating or revising a salary scale

Where to begin: The process

"Where to begin: The process of creating or revising a salary scale" section looks at the process of creating or revising a salary scale from the big picture perspective. While we mention the steps here briefly, each step of the process is explained further below.

You will want to know what percentage of your revenue (income) is being spent towards staff wages so you know where you are starting. This percentage will help guide you in making adjustments. While the instructions to find that percentage are provided here, you can also do this with the salary scale calculator, too.

START WITH COMPARING REVENUE & WAGE EXPENSES

Find your current total revenue and calculate what percentage of revenue you are currently allocating towards wages

• Add together all sources of income for a specific amount of time such as a year or month.
  
• If monthly, be sure to get an "average" month; consider how various income streams fluctuate over time or may only apply to portions of the year (examples include tuition, CACFP, subsidy, grants, federal/state streams - Head Start, Early Head Start, NC PreK, etc.)
  

• Calculate your total wage expenses, based on the same time frame you used for calculating revenue (if you used an average month, use an average month for revenue)
• Remember to include all applicable payroll taxes (Medicaid, FICA, etc.)
  

Find the total percentage of revenue that is being allocated towards pay

Ensuring the numbers reflect the same amount of time, divide the TOTAL WAGES by TOTAL REVENUE

• This is the total percentage of your revenue that you are currently spending on staff wages
  
• Typically, 70% or more of the total revenue is allocated towards pay
  

COMPare your compensation philosophy with your current wage structure

Look at your compensation philosophy and consider these guiding questions about your philosophy and current staff wages:

• How are the values, skills, and education you've determined important reflected in the base pay or wage increases?
• Are the values, skills, and education you identified important in your philosophy reflected in your wages?
• Are the long term goals of your program reflected in wage increases over time? How do your wages encourage retention?
  

LOOK AT YOUR CURRENT WAGES AT THE INDIVIDUAL LEVEL FOR INTERNAL COMPARISON

• Look at current wages across the similar roles (all lead teaching staff, for example)
  
• Look at current wages across those with the same/similar education
  
• Look at wages by classrooms/age groups
  
• Look for major extremes in wages (lowest/highest in the range)
  
• When hiring, is there a consistent base pay?

IDENTIFY YOUR GOALS & DETERMINE INCREMENTAL STEPS TOWARDS REACHING THE GOALS OVER TIME

What stood out when you compare your philosophy with your current practices? Does anything seem out of alignment?

• Clearly identify what you aim to do, why it is important, and the steps it will take to reach your goals
  
• Remember that the Toolkit Calculator is a tool at this point in the process to help you make decisions based on your individual financial circumstances, too
  

Take me to resources

about where to begin

Next Topic: What is your wage & compensation philosophy?

What is your wage and compensation philosophy?

"What is your wage and compensation philosophy?" section looks at the process of identifying your values and beliefs about the skills and qualifications of early educators as well as how you connect those values and beliefs to wages and compensation. One way to promote our values and beliefs is to embed them in the criteria we choose for the "steps" in our salary scales.

A compensation philosophy is a statement that details your beliefs about compensation at the program or business level. Your program's philosophy will ultimately be signed off on by the person or group responsible for financial decisions, but for a compensation philosophy to be successfully implemented it should be developed in collaboration with all those in leadership positions and when applicable, staff, board of directors, families, and any other individuals who are direct stakeholders in the program.

What specific education, experiences, or certifications mean the most to keep your program philosophy alive?

Knowing what we believe helps us plan for it financially

To develop a compensation philosophy, begin by asking questions:

• What are some key phrases or words that you feel summarize the goals of your program? Why does your program exist, and what values do you strive for your program to be known for?
• What skills, education, and experience do you look for in the hiring process?
• What is your vision for the future of your program?
• What values, skills, and knowledge will your future staff need to make this vision come to life?
• What have children accomplished? Who are your staff, and why are they there?
• What opportunities do staff want to see as part of the long term vision for the program? How do you know?
  

Next topic: Goal setting

Take me to resources about compensation philosophies

Goal setting

The "Goal setting" section looks at the process of setting goals that take into consideration your current pay practices, how you can better align your wage and compensation philosophy with your pay practices, and identifying the steps towards reaching your goals.

Identify the changes you want to make and the rationale for the changes. The changes should reflect the principles you've included in your compensation philosophy.

Depending on the context of the program, you may be starting from scratch, making changes towards a more equitable scale, revising a scale, or advocating for yourself as an administrator to have access to payroll and/or financial information related to staff wages.

• What needs to change and why?
• How are program values reflected in pay?
  
• How is equity addressed internally? Is similar work paid equally? What needs to change?
  
• When you looked at your pay practices, what did you notice that you feel is top priority? If there is any pay compression going on - this will need to be addressed first most likely (this will need very clear details)
  
• How will using the Model Salary Scale improve their current salary structure?
  

What changes will be necessary?

• Who will be involved in the creation/revision process?
  

Determine the long term goal and determine shorter action steps

Identify your goal in concrete terms

Set check in dates for each action step as well as the long term goal

Determine the difference between your current percentage of income that is spent on direct wages to staff and the amount it will take to achieve your goal(s)

We have provided the

Salary Scale Calculator to help do the math for you!

Next Topic: Implementing your salary goals

Take me to resources

about goal setting

Implementing your salary goals

The "Implementing your salary goals" section looks at considerations when implementing the steps you have identified.

Earlier, we talked through assessing your current rates of pay in terms of equity, fairness, growth, and alignment with your values. What is the most important first step that you have decided to take?

• Estimate cost of adopting the new or revised salary scale. If you are not able to fully implement the plan immediately, plan smaller steps towards full implementation.
  
• Create the financial plan for change and how the pay changes are communicated with board, staff, owners and/or all those who need to approve or support the plan.
  
• Consider the level of transparency with the salary scale. Plan for how the changes are communicated internally, in job postings, and externally.
  
• Continue to use the Model Scale, and the gap between where you are today and where you want to be as leverage with policy makers and as an advocacy tool.
  

Take me to resources

about implementing goals

Next topic: Real scenarios

The reality of wages, compensation, and where we are

It's easy to feel like there isn't any wiggle room in our budget...but we always suggest you begin by identifying exactly how much you are currently spending on payroll before thinking about what happens next.

We've developed the interactive salary scale calculator to help you determine what you are currently spending towards payroll and help project increases over time. Once you know where you stand today, you'll have a better idea of what increases look like over time and how to plan for them financially.

Annually, you will want to think about a standard cost of living increase across all staff or those in positions where it makes the most sense. For other increases, creating your own salary scale helps answer the questions of who gets a raise, when, and for what achievements.

A publicly posted salary scale means pay is equitable, which reduces perceptions of pay being unfair. These conversations often occur when pay IS inequitable: a newer teacher being offered a higher hourly rate of pay than a teacher who has been with the program longer ISN'T fair. It's also illegal to tell staff they aren't allowed to discuss pay rates. While the conversation may not be an easy one to begin, talking to staff about their perceptions of "fair" wages helps open the door to share the complexity of the situation many programs face when we start taking the steps to improve compensation for all staff.

This can feel unfair - and it IS unfair. However, the nature of how early childhood programs operate means that budgets typically do not allow for programs to pay significantly more. Operating in this way creates other issues, particularly when a program may be short staffed and really needs to get the candidate they are interviewing to commit to the position. Hourly wages may be offered to the newer teacher that don't line up with the wages of currently employed teachers. This is one of the reasons turnover occurs more often in early childhood than most other professions.

Ethically, we have a responsibility to educate our peers when possible. If you feel you can approach your administrator with your concerns, we encourage you to open the conversation with an understanding heart. We also recognize not all work environments encourage staff concerns in this way and how you handle the situation will depend on the context of your program.

There are resources in the toolkit about having hard conversations as well as links to organizations that support advocating for better work environment components such as equitable compensation. We DO encourage everyone to be involved in larger efforts that aim to promote equitable compensation for early educators.

First, you will want to think about the program's structure and current decision making processes. Is there an owner involved? As the administrator, do you have access to the budget and do you have any power in deciding rates of pay? You'll have to identify where to begin and with whom the conversation is best suited for.

If you are the decision maker, then we suggest you begin the process as we've described here: get a good understanding of your current revenue and payroll expenses, crafting or revisiting your wage and compensation philosophy, assessing current practices with the philosophy, and creating some goals for improvement. Always remember it is important to include staff in these conversations and be as transparent as possible along the way.

END OF CENTER BASED CONTENT

This concludes our Center Based Content Section of the Salary Scale Toolkit. You may continue scrolling to find more resources below or use the buttons below to return to the center based menu or the home page.

Where to begin: The process of creating or revising a salary scale

If you are just getting started or not as familiar with salary scales, these resources help explain how they are structured, how different tiers or ranges might look, and provide inspiration as you begin crafting salary scales for various roles in your program.

The video below explains pay structures, or salary scales and provides an example of a salary scale.

The video below explores some points you will want to consider as you set teacher's rates of BASE PAY, RAISES, and BENEFITS.

Salary structure: How to create a compensation structure. Insperity staff. Retrieved from: https://www.insperity.com/blog/a-quick-start-guide-to-creating-a-salary-structure-for-your-company/

How to set a salary scale for your employees. Dummies.com. (2016) Retrieved from: https://www.dummies.com/article/business-careers-money/business/human-resources/how-to-set-a-salary-scale-for-your-employees-197886/

Not all salary scales will look the same.

You may have a spreadsheet, a written document, or even a publicly posted scale on your website.

No matter what yours looks like, there are some common components to keep in mind.

Remember, a salary scale typically

includes:

Different wages (different scales) for different roles, tied to job descriptions and hiring requirements

EXAMPLES

of salary scales

This is an older example from work done in California. A sample scale is provided towards the end of the document.

This example is from Canada and includes administrators. Notice it is based

on program capacity for

administrators and education

for staff.

While this example is from 2010 - 2011, which means the dollar amounts are not relevant, notice the structure and criteria used to determine wages and steps between pay levels.

Developing a compensation philosophy

Think of your compensation philosophy as a statement that states your values and how your values are reflected in the compensation package(s) you offer in your program. Remember that compensation refers to the benefits you provide, and when we use the term "wages," we refer only to the direct wages paid to early educators. The philosophy statement should aim to promote your mission AND vision for the future by addressing how you attract and retain teachers. While transparency, or publicly sharing your salary scale is ideal, you may not be in a situation where that is an option. Ultimately, you will want to make sure your process for determining pay is clearly communicated, how you ensure equal pay for equal work, and any future commitments you plan to make regarding wage increases or bonuses.

Watch the video above to hear more about what should be in your compensation philosophy

Academy to Innovate HR: How to Create an Effective Compensation Philosophy. Gardner, Rhonda. Retrieved from: https://www.aihr.com/blog/compensation-philosophy/

What are compensation philosophies? A complete Guide. Indeed, Career Guide. June 2024. Retrieved from: https://www.indeed.com/career-advice/pay-salary/compensation-philosophies#:~:text=Typically%2C%20they%20use%20percentiles%20to,make%20in%20the%20same%20industry.

A two generation approach to early childhood: The role of wages and compensation in achieving quality & access goals. (2019). Budget & Tax Center Report. Retrieved from: https://www.ncjustice.org/wp-content/uploads/2019/02/BTC-REPORT-Two-Generation-Early-Education.pdf

Crafting your compensation philosophy

Identify core values

Think of your program's core values as the beliefs, principles, or actions that drive the type of care and education you provide. An example of one company's path to defining their core values can be found here for more inspiration.

Research

The long term goal of the Institute is for all early education programs to use the Model Salary Scale for Early Educators, which means pay would be the same across all settings. Until then, we know that your geographic location, revenue, and other factors will influence the dollar amount of wages you offer teachers in your program. You'll want to look at living wage research, what other similar programs offer nearby, and consider the impact of education on what you believe AND what you aspire to.

Ask teachers

In any existing early childhood program, the current staff are the most valuable source of input. Including staff in conversations around values, wage strategies, and future wage goals. Teacher involvement is the key to obtaining guidance and buy in.

Craft the statement

Just as you would with a mission statement or strategic plan, you'll want to draft the compensation philosophy and share with stakeholders. Provide a specific time frame for others to provide feedback and revise as needed. You will want to revisit the statement periodically and continue the process of gathering input, revisions, and further feedback.

Goal setting

Depending on the context of your program, you may be starting from scratch or revising a salary scale. You may be in a role where you are responsible for daily operations as an administrator but you are not involved in determining pay or other financial matters. No matter where you are today, you can set a goal that works towards improving pay in your program.

Some changes may happen faster than others. Keep in mind that even goals that feel small depend on many factors, and defining concrete action steps attached to specific check in dates will help set you up for success.

Here are a few ideas you may want to consider as you begin setting goals:

• Paying livable wages for all staff
  
• Achieving wage parity with K-12 teachers for like credentials
  
• Increasing pay based upon attained education/credentials or longevity
• Adjusting wages across roles to promote equity (i.e., you've noticed differences in pay across assistant teachers with similar education or differences between infant toddler teachers and preschool teachers)
  
• Creating a more defined career and financial pathway via salary scales
  
• Publicizing your current salary scale
• Accessing financial/wage information if you do not have access currently
• Aligning your wages with other systems, policies, and programs (Power to the Profession, education point levels with licensing, WAGE$, or T.E.A.C.H. educational tiers, etc.)
  
• Developing criteria for various wage increases driven by your philosophy statement
• Realigning current wages to address wage compression
  

This short video explains wage compression: when starting wages for new teachers are set too close to the wages of existing teachers

A guide to pay equity analysis. Lucid Content Team: Lucidchart. Retrieved from: https://www.lucidchart.com/blog/pay-equity-analysis

What is pay compression & how do you address it? Payscale. (2020). Retrieved from: https://www.payscale.com/compensation-trends/what-is-pay-compression-and-how-do-you-address-it/

Developing a plan involves some research...

No matter how big or small your goals may be, you will need to gather information to help define your target wages. You might need current data related to wages across various early childhood teaching roles, living wage estimates, or different ways we might calculate and consider “true” costs of quality.

Developing a plan involves multiple people...

No plan is complete without gathering input from staff and stakeholders.

Depending on the nature of your salary goals, stakeholders can include families, board of directors, owners, business partners, and even other administrators when applicable. Anyone with a vested interested in the financial sustainability of the program should be involved. Hard conversations are already hard...but when we talk about wages and compensation we have to remember that more than just finances are involved. Emotions can run high, and there is an often an unspoken sense that talking about wages and compensation is a topic that is "off limits."

Talking about pay, compensation, or other elements of the work environment are not illegal, although you may find policies that state these topics are forbidden. Part of shifting the culture of compensation requires an awareness of legal employment practices, paired with our willingness to engage in hard conversations. You'll find these resources helpful when discussing pay practices with staff and stakeholders.

Blueprint for Action: Book. Provides a framework and many tools to support organizational change via teacher leadership.

The Director's Toolbox. Series. Multiple topics covered through a series of books for administrators.

The Model Work Standards for Teaching Staff in Center Based Settings. Free online resource. A framework created by teaching staff defining the policies and practices needed to stay in their jobs.

The Model Work Standards Webinars: Two part series that is free, provides clock hours, and takes an in depth approach to the standards , collective leadership, and consensus building. Follow the links, create a free account, and get started. PART ONE.

The Model Work Standards Webinars: PART TWO.

Elements of Collective Leadership: An article full of resources about

collective leadership.

• While some of the resources can be costly, check with your local library, higher education resources, and local CCR&R/Partnerships to see if they have copies or access to the resources, too. Some are available with no out of pocket cost.
  

The process of including teachers and stakeholders in decisions is just one part of what shapes the WORK ENVIRONMENT.

Think about the work environment as how your policies and practices shape how it feels to come to work... the work environment creates the CLIMATE, or the “weather” at work. Our views on compensation impact the well-being of teachers across every area of the work environment!

Emotional

Physical

Financial

• Do you have a budget in place that meets the physical needs of staff while they are working?
• Do you have a salary scale that supports early educators to meet physical needs just as food, housing, etc.?
• Does your budget support providing healthcare or other options to receive healthcare for their physical needs?
• Are substitutes available for every person to take time off for vacation, illness, or self-care days?
  

• Do you have a salary scale in place that allows all staff to meet their needs?
• Do your practices create an environment where staff know what to expect with pay, when they are paid, how, and in a consistent manner?
• Are staff paid at a wage for the roles they take on rather than one set rate, when asked to serve multiple positions in the program?
• Are family child care owners able to set aside anything for savings or retirement?
  

• Do you promote open conversation about pay, acknowledging the importance of advocacy to increase funding for wages?
• Do you include staff in decisions involving the budget that directly impact them in their roles?
• Do you have a salary scale that promotes equitable pay across roles, ensuring fairness?
• Do you provide the resources and professional development teachers need to feel successful in their teaching practices, reducing stress?
  

More information about the dimensions of the work environment can be found here: https://capacity.childwelfare.gov/states/topics/cqi/organizational-capacity-guide/organizational-culture-and-climate#:~:text=Organizational%20climate%20represents%20staff%20perceptions,e.g.%2C%20supportive%2C%20stressful).

Cost estimation and the toolkit calculator

To support child care administrators and family child care home providers to review and analyze their budgets and hiring practices and ensure a consistent and fair approach to ECE workforce compensation, an interactive calculator has been developed.

For center based programs, you will be able to add information on monthly income and payroll expenses for your teaching staff. The calculator will then assist you in creating budget projections for those staff so you can determine how much it would cost to achieve a certain wage level over time.

You can try out the calculator at any point in time, but it's going to be most helpful as you set your goals as it helps identify what's possible and helps you attach goals to targeted dates. To get the full benefits of the calculator, it will be helpful to have the following information and technology:

• Download and reference to the USER GUIDE (you will find this on the page with the calculator)
  
• Ability to open Excel files
  
• Staff roster, wages, and their education levels
• All sources of income/revenue
  

You enter the information...

and the calculator is designed to

do the math for you!

Implementation of the salary goal

Once you are in the phase of finalizing your scale and implementing the beginning steps, there are a few things to keep in mind.

ACHIEVEMENTS!

• Obtain necessary approvals for implementation.
  
• Determine starting date to make first salary adjustments.
  
• Communicate any changes to teachers' wages prior to starting implementation.
  
• Determine the level of transparency with your salary scale and discuss with staff. Provide rationale and how it connects to your program's goals and values.
  
• Provide resources for staff to achieve the next level on the salary scale.
  

Resource: Example of how the philosophy and salary scales align

Progam ABC's compensation philosophy statement:

“Our salary scale recognizes education and experience while promoting individual talents and specialized work within the field of early childhood education as a whole.”

The starting wage is based on education level

Additions to the hourly wage are based on experience

Ongoing training is incentivized, promoting the values of the program (Foundations & Conscious Discipline)

EXAMPLE: A candidate is hired at this program for a lead teacher position. She has an early education credential and six hours of EC coursework. She is offered the position for $15.00/hour. In her first year, she completed one more course, which now puts her college credit at nine hours of EC coursework. Her pay increases to $16.50/hour.

During her second year of employment, she completes a Conscious Discipline teacher leadership program (.75/hour increase) and because of her education, she is eligible for an increase at the end of year one (.50/hour). Her hourly wage is now $17.75. She is motivated and decides to complete her associates over the next few years. When she completed her associates degree, her pay will increase $1.50, to reflect the incremental steps between the base pay of the credential +9 and the associates degree pay.

Salary scales can look very different, but should reflect education and other important factors in your program.

Other aspects of salary scales you may want to consider:

• Merit increases based upon program criteria (evaluations, certain demonstrations of leadership, etc.)
• Bonuses linked to professional development focused on specialized topics, such as Conscious Discipline, Outdoor Learning Environments, Curriculum choices, Reggio, Montessori, Infant Toddler, etc.)
  

Resources mentioned in this section of the toolkit:

Resources for wage & compensation philosophy

Academy to Innovate HR: How to Create an Effective Compensation Philosophy. Gardner, Rhonda. Retrieved from: https://www.aihr.com/blog/compensation-philosophy/

What are compensation philosophies? A complete Guide. Indeed, Career Guide. June 2024. Retrieved from: https://www.indeed.com/career-advice/pay-salary/compensation-philosophies#:~:text=Typically%2C%20they%20use%20percentiles%20to,make%20in%20the%20same%20industry.

A two generation approach to early childhood: The role of wages and compensation in achieving quality & access goals. (2019). Budget & Tax Center Report. Retrieved from: https://www.ncjustice.org/wp-content/uploads/2019/02/BTC-REPORT-Two-Generation-Early-Education.pdf

How fair pay perception and pay transparency combat turnover. Payscale. Retrieved from: https://www.payscale.com/content/whitepaper/Fair-pay-perception-and-pay-transparency-combat-turnover.pdf?utm_content=button&mkt_tok=NDE3LU5MSy0wODAAAAF-ki6aAPyDNXCClbkBAyg0XbASSCzkjLVB0Th9h1ft9ppJpPeU6LDmyWnheWAhVL7f_oT64LM_N1x-ahHCf99-y9cVDN4H9QPzKhr854l7TLSqVK4

How to define Company Values and Why it Matters. Fearless Culture. Retrieved from: https://www.fearlessculture.design/blog-posts/how-to-define-company-values-and-why-it-matters

Resources for pay equity & wage compression

A guide to pay equity analysis. Lucid Content Team: Lucidchart. Retrieved from: https://www.lucidchart.com/blog/pay-equity-analysis

What is pay compression & how do you address it? Payscale. (2020). Retrieved from: https://www.payscale.com/compensation-trends/what-is-pay-compression-and-how-do-you-address-it/

Resources about living wages, cost estimators, & local considerations

United Way Self Sufficiency Standard. Retrieved from: https://www.unitedwaync.org/self-sufficiency-standard

Child Care Services Association. Research. NC early education data source. Retrieved from: https://www.childcareservices.org/research/

Cost of Child Care.org. Cost of care calculator. Center for American Progress. Retrieved from: https://www.costofchildcare.org/

Goal setting resources: Consensus & stakeholder input

Blueprint for Action: Book. Provides a framework and many tools to support organizational change via teacher leadership.

The Director's Toolbox. Series. Multiple topics covered through a series of books for administrators.

The Model Work Standards for Teaching Staff in Center Based Settings. Free online resource. A framework created by teaching staff defining the policies and practices needed to stay in their jobs.

The Model Work Standards Webinars: Two part series that is free, provides clock hours, and takes an in depth approach to the standards , collective leadership, and consensus building. Follow the links, create a free account, and get started. PART ONE.

The Model Work Standards Webinars: PART TWO.

Elements of Collective Leadership: An article full of resources about collective leadership.

Dimensions of child care work environments: https://capacity.childwelfare.gov/states/topics/cqi/organizational-capacity-guide/organizational-culture-and-climate#:~:text=Organizational%20climate%20represents%20staff%20perceptions,e.g.%2C%20supportive%2C%20stressful).

Resources for creating or revising salary scales

Salary structure: How to create a compensation structure. Insperity staff. Retrieved from: https://www.insperity.com/blog/a-quick-start-guide-to-creating-a-salary-structure-for-your-company/

How to set a salary scale for your employees. Dummies.com. (2016) Retrieved from: https://www.dummies.com/article/business-careers-money/business/human-resources/how-to-set-a-salary-scale-for-your-employees-197886/

Example scale: Michigan. Retrieved from: https://hd.ingham.org/Portals/HD/Home/Documents/oyc/TQRIS/SASSupportingDocuments/GraduatedSalaryScaleSample.pdf.

Example scale: Canada. Manitoba Education & Early Childhood. https://www.manitoba.ca/education/childcare/students_workforce/wage_grid.html

Disclaimers

While we strive to always provide accurate, current and helpful resources and information in our salary scale toolkit, it's important to stress that this information is not a substitute for tax and legal advice from a tax preparer or attorney. You should always consult a professional with experience and knowledge of child care businesses to assist you with specific questions or needs. The content and resources we have included in this toolkit is merely meant to be informational and does not constitute legal advice.

In addition, although the NC Salary Scale Toolkit (toolkit) is a product of the NC Institute for Child Development Professionals (the Institute), the toolkit website may contain copyrighted content not owned by the Institute. The materials, resources and information in the toolkit is provided for educational and informational purposes and thus is believed to fall under the "Fair Use" guidelines of section 107 of the US Copyright Act of 1976. All rights and credit go directly to the rightful owners. No copyright infringement intended.

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