The most common and most likely answer to this crossword clue is the 5 plus 4 letter word MAGIC WAND
I've seen this crossword clue in The Daily Telegraph
M
A
G
I
C
W
A
N
D
More clues leading to the result MAGIC WAND
Buddy explains!

The straight part
We know that "Staff that can work wonders if handled with charm" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case staff that can work wonders if handled with charm = magic wand.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.