Hiring and keeping top-tier educators is a growing challenge for schools across the country. With teacher shortages on the rise, school administrators and hiring professionals must ask a critical question: Does pay impact teacher retention and recruitment?

The answer is, of course, a resounding yes. But how and why?

Today’s workforce is a complicated one, and that means compensation isn’t just about salary. Professionals want more, and are looking for value and stability while schools are looking to attract the right people to shape future generations.

So, how do you find the right mix? Let’s look at how teacher pay directly influences who enters—and stays—in the profession, with some expert insights from Spotter Staffing.

The Link Between Teacher Pay and Retention

Teacher turnover is a costly and persistent challenge that affects schools, students and communities. When educators leave their positions, schools must deal with multiple disruptions that can have long-term consequences.

• Disruptions in student learning – When teachers frequently come and go, students experience inconsistent instruction, which can lead to gaps in their learning and lower academic performance. A lack of stability in the classroom can also make it difficult for students to build strong relationships with their teachers, impacting their engagement and overall success.
• Higher hiring and training costs – Recruiting, hiring, and onboarding new teachers requires significant time, effort, and financial resources. Schools must invest in advertising positions, conducting interviews, and providing training for incoming educators, all of which strain already limited budgets.
• Lower staff morale – Constant turnover can create an unstable work environment, leading to stress and frustration among remaining staff. When teachers leave, their colleagues often have to take on additional responsibilities, and the sense of teamwork and school culture can suffer as a result.

A study by the Learning Policy Institute found that districts offering competitive salaries have lower turnover rates. It should come as no surprise that teachers who feel financially secure are more likely to stay, reducing instability and boosting school performance.

Beyond Base Salary

It’s not just about the money. Yes, it’s important, but there’s so much more to it. It can be confusing on trying to figure out where to start, though.

There are additional perks and opportunities a school can offer to teachers to incentivize and reward their hard work and longevity. In addition to competitive salaries, consider the following to elevate your offering and meet professionals’ expectations:

• Salary growth opportunities – Offering competitive pay structures, including step increases, shows teachers they can grow financially within the district and do not need to look elsewhere for higher pay.
• Bonuses and incentives – Retention bonuses, performance-based pay, and longevity incentives help keep teachers engaged, and working hard to seize the additional opportunities.
• Comprehensive benefits – Retirement contributions, student loan forgiveness, and healthcare perks add long-term value for teachers. While most schools offer basic health benefits, consider surveying school staff to make sure yours isn’t missing things like dental, vision, or pet insurance that can matter for staff.

Competitive Pay Drives Stronger Recruitment

News alert—educators are smart, so attracting top talent requires more than just posting a job listing. The best candidates weigh salary and benefits before choosing a district.

When salaries are competitive, schools can:

• Expand the candidate pool – Offering higher salaries allows schools to attract educators from beyond the local area, increasing the number of qualified applicants. When compensation is competitive, teachers may be more willing to relocate, giving schools access to a broader and more diverse talent pool.
• Draw in experienced educators – Veteran teachers who have a track record of success are more likely to consider switching districts if they are offered better pay. Competitive salaries help schools attract skilled educators who bring valuable expertise, strong classroom management skills, and proven instructional strategies that can benefit students.
• Increase diversity – A higher salary makes the teaching profession more financially viable for candidates from different backgrounds, leading to a more diverse workforce. By attracting educators from various cultural, socioeconomic, and ethnic backgrounds, schools can create a more inclusive learning environment that better reflects and serves their student populations.

According to the Economic Policy Institute, and agreed upon by almost everyone currently working in a school setting, teacher pay has failed to keep up with inflation, making it harder to compete with other professions. When districts offer competitive wages, they position themselves as top employers, bringing in passionate and skilled educators.

The Cost of Underpaying Teachers

Many school districts struggle with budget constraints, making it difficult to allocate more funds for teacher salaries. However, failing to offer competitive pay can lead to even greater financial and educational costs in the long run. When teachers are underpaid, schools face serious challenges that impact students, staff and the overall quality of education.

What happens when teacher pay is too low?

• High turnover rates – When salaries are not competitive, teachers are more likely to leave for better-paying positions, forcing schools to continually hire and train replacements. This constant turnover disrupts student learning and places an additional burden on administrators and remaining staff.
• Teacher shortages – Low pay discourages college graduates from entering the teaching profession, leading to fewer qualified candidates and unfilled teaching positions. As a result, schools may resort to hiring underqualified staff or increasing class sizes, which negatively affects student outcomes.
• Burnout and job dissatisfaction – Teachers who struggle to make ends meet often take on second jobs, reducing the time and energy they can dedicate to lesson planning and student support. Many eventually leave the profession altogether in search of careers with better pay and work-life balance, further exacerbating the teacher shortage.

Underpaid teachers may also relocate to districts that offer higher salaries, leaving struggling schools in a continuous cycle of hiring and losing staff. This instability harms both students and school communities, making it difficult to build strong educational programs.

Strategies to Improve Teacher Compensation

To attract and retain skilled educators, school administrators must look beyond traditional salary raises and explore creative solutions that enhance overall compensation. Offering additional financial support and benefits can make a significant difference in teacher satisfaction and long-term retention.

Creative ways to enhance compensation include:

• Signing bonuses – Providing financial incentives for hard-to-fill positions can help attract qualified candidates to areas experiencing teacher shortages. These bonuses can make a district more appealing to new hires and experienced educators alike.
• Tuition reimbursement – Supporting teachers in furthering their education through tuition assistance encourages professional growth and development. By investing in educators’ continued learning, schools can improve teaching quality while fostering long-term retention.
• Housing stipends – In areas with a high cost of living, financial assistance for housing can ease teachers’ financial burdens and make it more feasible for them to stay in their positions. Offering stipends can be particularly effective in retaining teachers in urban or competitive job markets.
• Merit-based pay – Rewarding high-performing educators with additional compensation acknowledges their hard work and dedication. Performance-based incentives can motivate teachers to excel in their roles while improving student outcomes.
• Improved retirement plans – Strengthening retirement benefits shows a district’s commitment to long-term career stability, making teaching a more attractive and sustainable profession. Enhancing pension plans or offering employer-matched retirement contributions can help retain experienced educators.

Many districts are also advocating for increased state and federal funding to support teacher pay without cutting essential school programs. By prioritizing competitive compensation, schools can create a more stable, motivated, and high-quality teaching workforce.

The Bottom Line: Investing in Teachers Pays Off

Higher teacher pay leads to better retention, stronger recruitment, and improved student outcomes. Schools that prioritize competitive salaries create an environment where educators can thrive—ultimately benefiting students, staff, and the community.

Is Your School Struggling to Find High-Quality Teachers?

Spotter Staffing can help! We specialize in connecting schools with top-tier special educators, social workers, and therapists who are ready to make an impact. Contact Spotter Staffing today to find the teachers your school needs!