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How to establish a salary system for teachers in training institutions

Time:2026-01-27

Source:Artstep

Education and training institutions cannot retain excellent teachers, where is the problem?
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Education and training institutions cannot retain excellent teachers, where is the problem?


It comes from salary design.


Many principals are enthusiastic about discussing their ideals with their teachers, but dare not confront the topic of "money" directly. It seems that talking about money tarnishes the sanctity of education. So they kept drawing pancakes for the teacher:


When we grow bigger, we will definitely not mistreat you


Education work is noble, we cannot just look at money



Young people, accumulate more experience, the future is yours

……


But the reality is that teachers also have to eat, support their families, and have their own material needs. When salary cannot support a decent life, even the greatest ideals will be defeated in the face of daily necessities.


What is the biggest cost in the education and training industry? Is it a venue? Is it a device? No, he is an excellent teacher.


A good teacher can bring you a continuous stream of students and reputation; Losing a good teacher may mean the loss of a group of students.


However, many principals would rather spend hundreds of thousands of yuan renovating their campuses than give teachers a little extra salary; I would rather spend money on advertising to recruit new students than invest in retaining good teachers, increasing renewal rates, and developing referrals.


Isn't this putting the cart before the horse?


The core of education is teaching, and the core of teaching is the teacher. Without good teachers, even the most magnificent campus is just an empty shell; Without stable teaching staff, even the most students will be lost.


Share a salary model that encourages teachers to "actively stay and rush to work". The core of this model is one sentence: let the teacher do it for oneself!


Specifically, this model consists of four levels:


Level 1: Basic salary + lesson fees to ensure the basic living of teachers


The basic salary is set based on the teacher's qualifications and abilities, but it is necessary to break the "one size fits all" mentality. We divide teachers into five levels: intern teacher, junior teacher, intermediate teacher, senior teacher, and special grade teacher. Each level corresponds to different basic salaries and hourly fees.


The key is that this level is not lifelong, but dynamically assessed. Every semester, based on indicators such as teaching quality, student evaluation, renewal rate, etc., those who are capable will be evaluated, those who are average will be evaluated, and those who are mediocre will be evaluated.


The design of lesson fees should also have differentiation:


Regular class: Basic lesson fee


Premium Small Class: Basic Lesson Fee x 1.5


One on one: Basic lesson fee x 2


Teacher class: Basic lesson fee x 3



This design motivates teachers to continuously improve and strive to teach higher-level courses.


Second layer: Performance bonuses to ensure that good teachers do not suffer losses


Performance bonuses are a key component of the compensation model, including:


Teaching Quality Award: Based on student evaluation and parent satisfaction assessment;


Renewal bonus: distributed according to a certain proportion of the student's renewal amount;


Referral Award: Students referred by teachers will be rewarded accordingly;


Full Class Award: An additional reward will be given when the number of students in the class reaches the specified limit.


These bonus designs directly link teachers' income to their teaching achievements, with the principle of 'more work, more pay' and 'better work, better reward'.


Level 3: Year end bonus, making core teachers partners


For teachers who have been rated as senior or above for two consecutive semesters, they can enter the bonus pool and participate in the institution's year-end profit distribution.


Specific operation:


Extract 20% of the annual profits of the institution as a dividend fund,


Allocate according to the teacher's level, class hours, and contribution.


Note here: Teachers only have the right to receive dividends, not ownership, which not only motivates them but also ensures the control of the institution.


The fourth layer: Growth Fund, giving teachers a reason to stay


For teachers who have served in institutions for at least 5 years (specific years, defined by the campus itself), they will automatically enter the "Growth Fund" program. Institutions extract a certain percentage of profits each year as a growth fund for teachers, which is used for:


  • Participate in off campus teacher training;
  • Purchase teaching resources and equipment;
  • Participate in academic exchange activities,.



This money belongs to the teacher's exclusive growth account, and the longer the service time in the institution, the greater the accumulated amount. If the teacher resigns, the account will be automatically reset to zero.


How effective is this model?


Last year, I recommended this model to an English training institution in Hangzhou. Before introducing this salary model, the annual turnover rate of teachers was as high as 48%, and the renewal rate was less than 50%. After implementing the new salary model, the following changes have occurred:


The teacher turnover rate has decreased from 48% to below 15%;


The renewal rate for students has increased from 50% to 75%;


The net profit of the institution increased by 56%.


The most important thing is that the principal can be liberated from daily management and no longer need to give teachers chicken blood or draw big cakes every day. The teachers' state has changed:


Previously it was' asked me to do it ', now it is' I want to do it';


In the past, it used to be 'it's better if students don't come, I can rest', but now it's' I hope more students are better ';


In the past, it used to be "running after class", but now it is actively communicating with parents and caring about students' learning outcomes;


Previously indifferent to institutional affairs, now actively offering suggestions and finding solutions.


When implementing salary reform, three misconceptions should be avoided:


1. Blindly copying


This salary model is a framework, and specific parameters need to be adjusted according to the actual situation of the institution. For example, the hourly fee standards for different regions and subjects may vary, and flexible settings are needed.


2. In a hurry to achieve success


Salary reform should be implemented step by step, with pilot projects first and then promotion. You can start with individual subjects or teachers, and then expand comprehensively after maturity.


3. Only change salary, not management



Salary reform must be accompanied by corresponding management systems. Including teacher rating standards, performance evaluation methods, dividend implementation rules, etc., all require systematic design.


The competition in the education and training industry ultimately boils down to the competition for talent. In this era of high teacher turnover, being able to retain good teachers is the best competitive advantage.


Many principals are worried: Is there still profit for the institution by giving teachers such high salaries?


Please think from a different perspective: Does your institution really have a future without giving teachers high salaries? Can you keep your good teacher? Can your renewal rate and referral rate be improved? Moreover, it is not about having the campus give all teachers high salaries, but rather requiring them to undergo assessment and reach the required level before they have the right to receive high salaries, which does not affect the elimination of teachers with low efficiency.


Excellent teachers create value for you, and you should give them corresponding rewards. This is not a cost, but an investment, the investment with the highest return rate.



The essence of education is awakening, influencing, and changing. But the premise of all of this is that teachers can live with dignity and focus on teaching without distractions.


Don't talk about your ideals with your teacher anymore! They deserve a better life and a decent income.


A good salary system can enable institutions and teachers to form a community of shared interests, destiny, and career. Only in this way can institutions break through development bottlenecks and achieve large-scale growth.