High levels of teacher turnover are the norm in American and International Overseas Schools. Studies in public and private schools in the United States established that high levels of teacher turnover are related to decreased academic performance, low levels of school climate and incur a financial burden. This study proposed the use of incentives to retain desirable teachers as a cost effective means to improve school climate and academic performance. Seventeen of forty-one American Overseas schools in Europe participated in this study. Teachers identified the incentives that are most influential on their decision to re-sign for at least one additional year. Heads of school identified the incentives they felt where most influential as well as those that they are allowed to use by tradition and school board policy. This study found re-signing bonuses, annual flights home and increased housing allowance to be the most influential incentives for teachers and the least accessible to heads of school.