The purpose of this study was to examine the effects of locally competitive salary supplements and the turnover rate in all North Carolina school districts and to discuss exit survey data in one North Carolina school district. The research analyzed the effects of changes in locally competitive salary supplements and the turnover rate in all North Carolina school districts over a period of three years. The study also used exit survey data from one specific school district. When compared to the district's salary data, a description of the findings in the individual school district provided information regarding the reasons teachers are leaving on a state-wide level and provided insight into the reasons teachers provided for their leaving one North Carolina school district. The study used the conceptual framework of Herzberg's Motivation-Hygiene Theory (also known as the Two-Factor Theory) as a basis for understanding the data regarding local salary supplements and teacher turnover rates over several years. Correlations were run between teacher turnover rates and both salary supplement amounts and salary supplement changes. The researcher found only one indicator of significance for both salary supplement amount and salary supplement changes. Using a multiple regression analysis, the researcher used location as the central independent variable with salary supplement amounts and supplement changes added to the equation. Two regions in North Carolina showed a statistically significant relationship between teacher turnover and salary supplements. Using exit survey data from one local school district, the researcher calculated the percentages for the three main reasons listed on the survey for teachers leaving their jobs. The researcher correlated these reasons to Herzberg's Motivation - Hygiene Theory. This resulted in salary as a hygiene factor receiving the highest percentage, followed by more opportunities for advancement as a reason teachers left their positions. Possible reasons for the findings, rival hypotheses, implications for administrators and policy makers, and recommendations for future research are discussed in the final chapter.