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There's the dilemma !!!
Without retention , we lose students , we lose money , we lose extra curriculars , we lose personel , we lose hours.
Should we also lose the budget to invest in this area ?
Keeping a few students will pay for all of this.
It's time to keep a few more students.

That pretty well captures the self interest/fiscal side of the discussion. There are other reasons to "keep a few students".

I have already made two changes to my own personal policy. 1 - Better orientation / preparation for each new class.
2 - More closely monitoring student progress and participation.
I will be working on class materials as new classes come up. We do need to invest more time into this.

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