Q: Does LERN have information about setting up pay scales for those who teach classes that are “just for fun” versus those who teach classes where certification or educational endorsement is required?
A: LERN uses a financial formula to help determine teacher pay. For enrichment courses, there are three figures to consider:
1. Promotion costs. This is the cost of printing and mailing your brochure and promoting your program. This should be 10% to 15% of you income at the most.
2.Production costs. This is the cost of actually providing the course. Most of the cost here is instructor pay. This amount should be in the range of 35% to 40% of your income.
3. The third financial measure is operating margin. This is the amount left over after you have paid your promotion and production costs. This amount should not be less than 50% of your income. This is the portion of your budget that is used to pay your general and administrative costs.
With this information, you can set a realistic compensation budget for your instructors. If your total income is $15,000 then $4500 would be 30% of that. This would mean that you could allocate $4500 of your total budget to instructor compensation. You can determine the promotion and production costs as well as operating margin for each course as well as for your total program. That will help you determine appropriate pay for individual instructors. Keep in mind that some courses may generate a much higher operating margin, and you may need to subsidize lower producing courses from those that are high producing.
Some programs also pay a flat fee to instructors of certain courses. This fee should not be greater than 35 to 40% of income so that you can maintain an acceptable operating margin.
Questions
Teacher Pay Scales
May 24, 2018 9:05:31 PM
by
Jordan Kivley
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