They will not stay with a poorly managed company with no direction. The more people you lose, in a small town, the harder it is to find quality people. Word will get around and soon no more people apply. Leadership - Good leadership is contagious. It spreads throughout an organization.
People respond to it.
Many people lead by example, others are good motivators, still more recruit quality people and give them a challenge. Whatever the method of leadership it must be present for a company to succeed. I personally believe the reason for that is that they have been conditioned most of their lives to be an employee taking orders not giving them. Someone has to decide levels of performance and insist that those levels be met. Performance standards must also be consistent throughout the company.