5 Truths Every MSP Owners Need to Hear: An Open Letter from the Trenches

We don't talk about this enough.

Not in Teams meetings, not in Slack channels, and definitely not in all-hands calls, but every day, in the not-so-quiet moments between tickets, patch rollouts, and end-user escalations, the conversations happen.

Behind the scenes, your techs, engineers, and front-line people are talking. What they’re saying might surprise you.

This isn’t a gripe session or a list of demands. It’s an honest letter from those who spent years in the trenches, directed to those steering the big MSP ships. If your goal is to build sustainable, high-performing teams in this industry, we’ve got to get real about what matters to the people doing the work.

Truth #1: We Are Not Family

When I hear a company say things like "Our employees are like family", the first thing I think is "What do the employees think?" Typically this saying is masking a poor culture or unrealistic expectations. To be fair, I think some owners and managers say this to foster a sense of camaraderie but families aren't asking you to skip your vacation because someone else quit, or asking you to prove you are working by updating tickets every 15 minutes. There’s nothing wrong with acknowledging what this really is: a professional relationship. We exchange time and energy for money. That’s not cold or cynical; it’s honest. And ironically, honesty creates more trust than pretending we’re something we’re not.

There are 8,760 hours in a year. On average, we spend 2,920 of those sleeping and another 2,080 working. That leaves just 3,760 hours—less than half the year—for everything else: family, hobbies, rest, and simply living. And that’s before we account for things like overtime, commuting, or the time we spend mentally stuck at work even after we clock out. Every working human sacrifices almost a third of their life working so they can live.

Let that simmer for a minute. We spend a third of our lives working, just so we can spend a third of our lives actually living.

We aren't working for fun, we work to live. The last thing we want in a professional relationship is trinkets, gift cards, and pizza parties. We want fair wages, clear career paths, being heard, and less time wasted. Being a "family" doesn't keep your employees happy; it actually pushes them away. This overuse of "we're a family" can create a sense of obligation that goes beyond a standard professional relationship. Sometimes this leads to situations where the employee's boundaries are constantly tested. This ultimately leads to burnout, resentment, and sadly turnover. If you value your employees then provide them with:

  • Clearly defined roles, responsibilities, and performance expectations.
  • An environment where they feel comfortable voicing concerns and providing feedback without fear of reprisal.
  • Competitive salaries and benefits that reflect the value of the work being performed.
  • Opportunities for professional development, training, and career advancement.
  • A healthy work-life balance.

Truth #2: Your MSP is Not Unique

In 2019, ConnectWise’s then-COO Geoffrey Willison estimated there were over 40,000 MSPs in the United States alone. By 2020, 8,000 of them were expected to dominate the majority of the available revenue. [1]

Most MSPs offer the same promise: to take the weight of technology off their clients’ shoulders. Although the tools, verticals, or branding might vary, the core services are often similar. The hard truth? Your MSP probably isn’t doing something radically different. And that’s okay. What does make a difference is how you treat the people delivering those services.

Profit margins might define success, but an MSP that understands both its customers and employees is truly successful. It's one of the largest key differentiators for any MSPs: how they treat their employees. Good employees don't want to work for bad MSPs just as much as good MSPs won't want bad employees. People will always be your greatest resource as an MSP, inside and out. When employees are treated well and invested in, they provide top-tier services. Those services will make you stand out next to competitors.

Truth #3: Non-Technical Managers Hurt Good Employees

There is a long list of debates on whether non-technical managers provide value to tech-centric companies. None of us expect upper management to be tech experts. It will certainly help earn the respect of your employees but isn't a requirement. However, when we talk about middle management, nothing throws a wrench in a good process like a non-technical manager. Don't get me wrong, I know some pretty solid non-technical managers who know exactly who to call for technical answers but those are few and far between. ds Management skills are essential for managers and let's be honest, it's a very hard skill to learn. Most of the great leaders are just naturals at it. Again, very rare. This lack of technical knowledge creates challenges and frustrations for your technical staff. Non-technical managers tend to struggle in:

  • Understanding the complexities of technical issues: This can lead to unrealistic expectations, poor resource allocation, and ineffective problem-solving.
  • Make informed decisions: Without a grasp of the underlying technology, managers may make decisions that negatively impact the team's ability to deliver services.
  • Communicate effectively with technical staff: Technical staff may feel that their manager doesn't understand their challenges or appreciate their expertise, leading to communication breakdowns and resentment.
  • Provide adequate support and mentorship: Non-technical managers may lack the knowledge to guide and mentor technical employees, hindering their professional development.
  • Gain the respect of their team: Technical staff may question the credibility and leadership of a manager who lacks technical proficiency.

These things lead to decreased morale, increased stress, and higher costs due to turnover but you can avoid these issues by prioritizing things like:

  • Promoting experienced technical staff into management positions. These individuals possess the technical expertise and understand the day-to-day challenges of the work.
  • Providing non-technical managers with ongoing technical training to bridge the knowledge gap.
  • Encouraging open communication and collaboration between technical teams and management to ensure that technical considerations are factored into decision-making.
  • Ensuring that technical staff feel their expertise is valued and appreciated. This can be achieved through competitive compensation, opportunities for professional development, and recognition of their contributions.

Truth #4: Metrics Aren't Everything

Every MSP help article you find online will mention KPIs in some form or fashion. They play a crucial role in keeping a finger on the pulse of your company. Companies make the mistake of blindly following metrics as the primary source of truth. This can really throw you off the right path. In short, metrics don't tell the whole story and an overreliance on metrics can have negative consequences. A large consequence is tunnel vision. Some employees may focus on only hitting the metrics established which causes them to lose sight of other areas that may not be measured like quality of work, customer service, and team collaboration. These metrics often lead to short-term thinking at the expense of long-term sustainability.

These metrics establish a culture of fear and anxiety, often crippling innovation. We've all had employees "game the system". Some will find ways to boost those metrics, and some may even find ways to bypass them. Metric culture makes managers feel like the needle is moving but in fact, the pressure tanks are about to blow.

The worst of all is when metrics fail to capture the nuances of individual situations. A good manager can identify these mishaps but there are going to be times when you can't trust the metrics. Instead, you invest time in understanding how your employees work, and the common issues they face day to day, and remove those obstacles. If you have an employee not hitting their numbers, your first instinct shouldn't be calling them out. It should be gathering more information to properly gauge the situation.

The real question is how can we avoid these issues altogether. Try to use a mix of quantitative and qualitative measures. Gather feedback through check-ins, employee surveys, and client feedback. Find a way to measure or take into account the impact of an employee's work, not just the volume of their activities. Be open to feedback, don't just ignore their input. Nothing destroys a good employee like management's deaf ears. Acknowledge and reward employees and no that doesn't mean more pizza parties or trinkets. Remember, we work for money. If we provide more value, make sure their paycheck reflects that value. Finally, whatever you do, please don't use metrics as a tool for punishment. You should be framing metrics in a way that shows areas that can improve and provide support to help them grow.

Truth #5: Retention is the New Recruitment

The recruiting landscape is getting scarce. The economy is tanking and we all feel it. MSPs can't afford to lose good employees right now. SHRM's 2024 Talent Trends says that "over 3 in 4 organizations have had difficulty recruiting for full-time regular positions while nearly half have had difficulties retaining full-time regular employees in the last 12 months." [2]

Losing good employees is an early indicator you are doing something wrong. That could be due to culture, payroll, bad management, you name it. I sat in many meetings during COVID-19 talking about customer churn and how it had the ear of every upper management member. I don't remember sitting in meetings talking about employee churn. That churn in my opinion is far worse than losing customers. You are going to lose customers, that is completely normal. When you lose good employees, I'd argue you are losing so much more. Things like institutional knowledge, invested time and training, recruiting investments, and the happiness of existing employees.

Hiring is a pain. It typically takes new employees up to two months to get their footing. These new employees have to be trained which takes away key employees from their day-to-day work. In reality, these employees will never be fully trained. At least not to the level of your existing employees. It'll take them much longer to provide a return on investment. During that time, both the new employee and existing employees may get frustrated. In some rare cases, those new employees could even rage quit. Feeling they were set up for failure.

By prioritizing employee retention, MSPs can create a more stable, engaged, and productive workforce, leading to improved client satisfaction and business success. Investing in your people isn't just the right thing to do; it's the smart thing for your business. Which of these truths resonates most with you? Let us know how you're prioritizing your team's well-being and seeing the positive impact on your MSP's success.

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