Retention Starts on Day One — And It’s on Leaders, Not HR | Entrepreneur

Research shows that 70% of new employees decide whether a job is the right fit within their first month, including 29% within the first week. Despite this, the conversation around employee retention in many companies starts far too late.

It often begins only after people have already disengaged and are considering leaving. At that point, HR may step in to address concerns and offer perks that were previously overlooked, but by then, it’s frequently a last-ditch effort.

These late-stage actions have their place, but the decision to stay or leave is ultimately driven by the leadership people experience every day. Employees stay when they are led well, when they are hired into teams that work, when they trust the tone and consistency of their leaders and when what the company says matches what they live.

It is observed that 70% of the variance in team engagement, which defines the employee experience, comes from managers. However, most often, leadership treats culture and retention as HR’s function instead of taking ownership of delegating trust.

But if you want a team that people want to stay on, leadership has to build it every day from the very first hire.

Related: This Is the Retention Strategy You’re Probably Overlooking

Why companies get this wrong

I’ve worked with countless leaders who want to build great teams. But wanting that and knowing how to do it are two different things. Most of us are never really taught how to create an environment where people choose to stay and do their best work. More often, we figure it out on the fly, after years of trial and error.

And what ultimately shapes that experience is not a formal culture program. It is the everyday signals leaders send, who they choose to hire, how teams are built and how they respond when things go well and, more importantly, when they don’t.

These are the cues people watch as they tell them what the company values and whether they can see themselves growing here.

It took me years of pattern-spotting to see which leadership habits improve retention. Five, in particular, have stayed with me as practical ways to do that work. They might help you as well.

Related: Your Retention Crisis Won’t End Until You Make This Shift

Practice 1: How you hire determines who stays

Hiring still relies too heavily on technical skills, which is the easiest part to measure. But it’s not a lack of skills that drives people out the door; it’s a poor fit for the role or the culture.

When employees leave, they usually explain that the job was not what they expected or that they could not see a future for themselves. Those are hiring mistakes, not performance problems. The people who last see meaning in the company’s direction and feel the team is a place where they can grow. Skills may open the door, but alignment and motivation make people stay.

Practice 2: How you shape the team determines how it performs

Every new hire reshapes the team you already have. The wrong hire, even a skilled one, can weaken trust and make collaboration harder.

A strong hire can lift the team by bringing balance and energy. The difference is not always visible on day one, but over time, it shows in how the team communicates and performs. That is why, before hiring, it’s important to examine the team’s state and ask whether this person will strengthen or disrupt its rhythm.

Practice 3: What you allow becomes the culture

The culture is defined by what you reward and tolerate, not what you say. You can talk about collaboration in any way you want. But if managers reward individual heroics and tolerate siloed behavior, that’s your culture.

You can include “innovation” in your values. But if people are punished for small failures or if leaders tolerate endless risk-avoidance, the real culture is fear. If you want to build a culture worth staying in, be honest about what you are rewarding and what you are letting slide.

Related: Don’t Underestimate the Power of Company Culture — It Matters.

Practice 4: Leadership attention drives retention

As companies grow, the distance between leaders and the rest of the organization grows with them. If you do not close that gap with intention, trust begins to fade, no matter how strong your culture looks on paper.

You will not hold alignment with a memo or an all-hands. What matters are the signals where you spend time, and how you show up when pressure is high.

People watch most closely in uncertain moments and leave when the leadership they experience no longer matches what they were promised.

Culture is held together less by proximity and more by deliberate presence. It drifts when leaders stop showing up in ways that keep people connected to the mission and one another.

Practice 5: Your energy sets the tone

One thing that took me years to fully appreciate is that your energy is contagious as a leader. What you project through tone, attention, body language, and behavior directly shapes how people around you feel and perform.

Calm steadiness builds confidence, while restless energy spreads just as quickly. The people who carry your culture most strongly are usually the first to feel it. They pick up on your tone, and their reaction influences the rest of the team. When they sense balance and clarity, they magnify it.

Therefore, before stepping into a room, decide how you want people to feel and bring that energy with you. Your tone matters as much as your decisions in moments of change or pressure. When people feel steadiness from you, they find it in themselves and give more of their best.

Related: Keep Your Top Talent with These 3 Employee Retention Secrets

Retention is earned or lost in leadership

Perks and HR policies play a role, but can’t compensate for weak leadership. Retention is built in leaders’ everyday work, including who they hire, what they reward, where they show up, and the tone they set.

If you want teams, people want to stay on; lead them in a way that makes staying the natural choice.