Would you rather lose a client or lose a staff member?
Or in other words, keep a client and lose a staff member or keep the staff member and lose a client?
It really DEPENDS...I would keep my staff as initial/automatic response. It is always the starting side I sit, evaluation to be made when additional information comes to light on the situation.
Much prefer to loose a client!
I only keep employees if they are awesome.
Jef Lippiatt Owner at Startup Chucktown
I would somewhat echo what Huy wrote. I would most likely want to keep all of my staff, unless someone was causing problems for the overall team or not meeting expectations. If you've done your due diligence when hiring, it'd probably be hard to let someone go.
However, from a client perspective I would examine a few more items. If the client is always difficult to work with, it would be an easy decision to stop working with them. I think the main concern before losing a client would be to consider, how much of your business will be impacted by not having their business? If cutting a client loose (even a difficult one) would impact your business to the point of closing your business you need to do some hard looking. Build up some additional clientele before cutting the client off. I would take that approach to ensure that if I lose a client, my staff would still have jobs.