The purpose of this study was to determine which factors most impact North Carolina elementary school principals' decisions to retain or socially promote students while implementing the North Carolina Gateways. Data were collected utilizing a two-phase design. Phase one of the study was a survey, which was distributed to all elementary principals in the state of North Carolina. Phase two of the study utilized follow-up interviews to gather qualitative data. An analysis of the data indicated that North Carolina elementary school principals believe retention can be used as a tool to improve student achievement. Factors that most impact a principal's decision to retain students are discussed. North Carolina elementary school principals also indicated that they do not socially promote children. Factors that most impact a principal's decision to promote a child not on grade level are discussed. North Carolina elementary school principals indicated that neither retention nor social promotion is the answer to improving student achievement. Principals across the state have implemented intensive remediation and intervention strategies designed to provide all students with developmentally appropriate instruction. Implications of the research findings are discussed and recommendations for future research are given.