Performance-Based Incentive Systems and Their Effects on School Performance and Teacher Job Satisfaction

This study examined the effect of performance-based incentives on school performance and job satisfaction among public-school teachers in the municipalities of Maasim, Kiamba, and Maitum (MAKIMA), Sarangani Province, Philippines. Specifically, the study assessed teachers' perceptions of performance-based financial rewards, recognition and appreciation, and opportunities for career advancement, and determined their relationships with school performance and job satisfaction. A quantitative approach employing a descriptive-correlational research design was utilized. Using proportional random sampling, 233 public-school teachers participated in the study. Data were collected through adapted and validated survey instruments and analyzed using descriptive statistics and Pearson's correlation coefficient. The findings revealed that respondents moderately agreed on the effectiveness of performance-based incentives, with performance-based financial rewards obtaining the highest rating, followed by recognition and appreciation, while career advancement opportunities received the lowest rating. School performance was generally satisfactory, with completion and repetition indicators achieving good performance levels. Teachers demonstrated a high level of job satisfaction, particularly regarding job responsibilities, security, and community attachment, although the work environment received comparatively lower ratings. Correlation analysis indicated a strong positive relationship between performance-based incentives and school performance (r = 0.84) and between performance-based incentives and job satisfaction (r = 0.82), leading to the rejection of both null hypotheses. The study concludes that effective performance-based incentive systems are associated with improved institutional performance and enhanced teacher satisfaction. These findings highlight the importance of transparent, equitable, and comprehensive incentive programs that combine financial rewards, professional recognition, and career development opportunities. The results provide evidence to support policy enhancement within the Department of Education and offer practical implications for strengthening teacher motivation, organizational effectiveness, and sustainable educational quality in public schools.