Career ladders have been proposed as one way to address problems rural and small schools have in recruiting academically able and talented teachers, recognizing them once they start teaching, and retaining them in the teaching role. While there are differences in career ladder plans, there are also some common features, e.g., predetermined criteria for advancement, objective evaluation procedures, opportunities for teachers to accept new roles in the higher steps, and stipulations for certification/training for advancement. Advantages of career ladders for individual teachers include both intrinsic and extrinsic rewards as well as providing a longitudinal framework within which teachers can form their own career decisions. Advantages for school districts are numerous, including enabling the full use of teacher potential, providing exemplary models for beginning teachers in a systematic way, providing a method to reward outstanding teachers, etc. Among potential problem areas are role definitions for teachers and administrators, school management and decision-making, funding, evaluation and continued training of teachers, etc. Several steps involving planning, commitment, sharing of information, and evaluation need to be followed before career ladders can be implemented in rural and small school districts. Funding will probably be the key determinant of success. Proposed career ladders are appended. (BRR)