Remuneration of academic teachers based on their effects: An analysis of the University of Iceland

Abstract

Remuneration based on effects has recently been gaining in popularity with business organizations. It involves setting goals and tasks that need to be done in a given timeframe. This approach gives an employee a free hand in regard to how and when they want to achieve those tasks.  The aim of this article, is to discuss remuneration of academic teachers, based on their performance using the example of the University of Iceland and to suggest measures of performance of academic teachers employed at Polish Universities. I have defined an academic teacher according to Euridice (2009: 87) which refers to both qualified academics involved in the education process and those employees whose work is related to administration and/or coordination of all employees at the University. Therefore, I have not taken into consideration the way in which administrative officers are remunerated (not including Office workers, Accountants, Financial Administrators etc.). In the first part of my article, I have demonstrated the terms of performance-based remuneration and illustrated tasks that an Academic Teacher completes in different areas of their work. In the second part, I have presented an analysis of a given University and discussed the featured approach. In this example, the connection between remuneration and performance can be direct (e.g. bonuses and awards) and indirect (e.g. an annual bonus). This approach requires establishing a clear explanation of the rules that govern the system of remuneration for all the Employees and also manifesting their roles in effective performance for the entire University. This is also an example of a system approach regarding the relationships between the remuneration strategy and the strategy of the University.