Important
Treat your customers well, but treat your staff better. After working with Australian SMEs over the years, I have seen firsthand how disengaged teams create service breakdowns, rising staff turnover, and hidden profit leaks.
I first heard this quote on a documentary about the Maloof family (Lebanese immigrants who built a major business empire in the US).
I have also heard Richard Branson and others repeat a similar mantra:
Treat your customers well… and treat your staff better.
It sounds simple. But for SMEs, it is one of the most commercial rules you can follow if you want:
- better customer experiences
- more repeat work and referrals
- fewer internal fires
- lower staff turnover (which is costly)
- a healthier culture, you do not have to constantly “manage”
Here is the key:
Your customers do not experience “your business”.
They experience your people.
Your staff are the customer experience
In most SMEs, the owner is not delivering the service every time.
The day-to-day customer experience is shaped by:
- the receptionist who answers the phone when a customer is frustrated
- the admin team that keeps the wheels turning
- the staff member who explains a delay calmly (or poorly)
- the team member who takes ownership of a problem instead of handballing it
So if you are trying to lift customer satisfaction but your staff feel undervalued or stretched, you are pushing uphill.
If staff feel respected and supported, customers feel it quickly.
So what does “treat your staff better” actually look like?
It is not bean bags and free snacks.
It is mostly unglamorous: simple habits, done consistently.
Here are five practical ones.
1. Listen properly (especially to new staff)
Staff often see problems you no longer notice.
New starters are particularly valuable because they:
- notice friction points immediately
- ask “why do we do it this way?”
- see the business with fresh eyes
Practical ways to listen:
- ask for input from all levels
- keep a simple running list of suggestions
- close the loop with a quick response
Set expectations clearly:
- every suggestion will be considered
- not every suggestion will be implemented
- the final call sits with leadership
That is not dismissive. It is honest.
2. Provide flexibility (not just work from home)
I originally wrote this point back in 2017, so I either had a premonition… or I simply noticed what good staff have always valued: flexibility that makes life workable.
Yes, work-from-home can be part of it for the right roles.
But flexibility also includes:
- late start or early finish for school commitments
- attending assemblies, sports, music and the juggle of family life
- temporary adjustments during a tough season at home
The rule is simple:
- the work gets done
- the standard stays high
- it is a two-way street
3. Pay staff at or above market (if you want them to stay)
The saying is blunt for a reason:
Pay peanuts, and you get monkeys.
Most households are under financial pressure. If a staff member feels underpaid:
- they keep looking
- they jump for small pay increases
- they mentally disengage even if they stay
Replacing staff is expensive:
- recruitment fees and time
- onboarding and training load
- disruption to customers while someone gets up to speed
A strong team is not cheap.
A weak team often costs more in the long run.
4. Set high standards (and be consistent)
I do not apologise for high standards.
High bar, higher result (even if not perfect every time).
The critical part is consistency:
- no favourites
- no shifting expectations
- no unclear standards that change after the fact
And you have to lead by example.
Culture is not what you say.
Culture is what you tolerate.
5. Give feedback regularly (not once a year)
Feedback works best when it is:
- specific
- close to the moment
- clear about what “good” looks like next time
If you wait nine months:
- the example is forgotten
- the same issue repeats
- you lose months of improvement
Also, give positive feedback quickly.
People repeat what gets recognised.
The umbrella point: actually care about your people
If I had to reduce this whole rule to one idea, it is this:
Actually care.
Not lip service. Real care.
That looks like:
- taking interest without prying
- noticing when someone is under pressure
- investing in development, not just output
When staff feel valued, they tend to:
- take ownership
- protect your reputation
- look after customers when you are not in the room
Practical takeaway for SME owners
If you want better customers, do not start with customers.
Start with your staff experience.
A simple way to apply Rule #2 this week:
- ask a newer staff member: “What feels harder than it should?”
- make one small flexibility improvement that does not drop standards
- sense-check your pay positioning for key roles
- reinforce one standard you care about, and model it
- give one piece of timely feedback (positive or corrective) while it is fresh
None of this is complicated.
But it works when you do it consistently.
If you treat customers well and treat staff better, you build a business people want to deal with, and a workplace people want to stay in.
Disclaimer: This article provides general information only and does not take into account your personal circumstances. It is not financial or tax advice. You should seek independent advice from a qualified professional before making decisions about tax, legal or financial planning matters, along with loan structures or entity structure.
