Global early childhood education workforce shortages have highlighted the importance of recruitment and retention. The development of effective leadership has not been a retention policy focus even though effective leadership has been identified as an important driver for improving working conditions and supporting educator retention. The aim of this research was to investigate what factors affect retention focussing on retention challenges for leaders in an under researched context. Participants were 34 early childhood educators in the Northern Territory of Australia. A constructivist grounded theory methodology framed the research and the data analysis, and a constant comparative method was used to generate categories. The lack of learning on leadership, coupled with competing priorities, were identified as critical factors that contribute to increased attrition. However, informal mentoring was found to support both the positional and emerging leaders, increasing the probability of their retention regardless of their access to leadership development.