Journal of Financial Planning: January 2023
Barbara Kay, LPC, RCC, TIPC, is a business psychology and productivity coach specializing in growth, productivity, teams, client relationships, behavioral finance, communication, change, and leadership. She serves financial services leaders, teams, and professionals nationwide. Barbara is the author of numerous articles and two books, Top Performer’s Guide to Change and The $14 Trillion Woman. She holds dual degrees and credentials in clinical psychology and coaching. She can be reached HERE.
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When I give presentations to financial professionals on behavioral finance, I focus on how emotions derail their investor clients. However, financial advisers have the same risks, especially in volatile markets. In fact, I believe it’s more difficult for advisers than their clients. Advisers must soothe client anxieties multiple times over and manage their own stress at the same time. This non-stop emotional effort takes a significant toll. Leaders can minimize this strain with three positive resilience strategies.
1. Neutralize Client Contagion
The brain is so attuned to emotional cues that people instinctively react to negativity. Psychologists call this “emotional contagion.” Any negative emotion—fear, anger, anxiety, or frustration—automatically triggers an equally negative response. The more intense the emotion, the more intense the response.
During difficult markets, it’s important for leaders to monitor the team’s emotional mood. Client negativity is contagious and will infect the team. A continual drip of contagion subconsciously erodes the team’s energy and effectiveness. In addition, adviser stress will automatically trigger stress in clients, creating a negative downward spiral.
Leaders can neutralize client contagion with proactive positivity. One simple way is to keep score on all the wins. The list may include expanded opportunities, new referrals, number of grateful clients, and even the number of clients successfully calmed. Days filled with market turbulence and anxious clients are emotionally draining. Marking the wins restores energy and highlights the positive impact of the team’s effort.
2. Eliminate Team Irritants
The pandemic provided a wealth of research on work stress. Teams hated dealing with meaningless tasks, pointless meetings, and toxic team members. During this challenging period, eliminate anything that wastes time or increases aggravation. Dump or delay low-priority tasks, and reduce inefficiencies as much as possible.
In addition, protect the team from peer-to-peer contagion. Since team members shouldn’t complain in front of clients, they tend to dump on peers. While it’s normal for stressed people to complain, it adds to the toxic emotional contagion.
Set the tone by focusing on positive problem-solving. When someone complains, acknowledge the aggravation, then quickly shift to exploring solutions. You might say: “I understand this situation is aggravating. I hear your frustration! We’ll feel better when we find a solution. How can we problem-solve this?” Notice the acknowledgement focuses on finding a solution and feeling better. Highlighting the practical and emotional relief helps people pivot.
When someone is feeling really negative, it might take a moment to shift. If complaining continues, repeat your acknowledgement, and request to problem-solve. If you have to repeat yourself more than a few times, the person may be stuck in negativity. At that point, shift to meta-communicating. Meta-communicating reflects on the nonverbal aspects of the conversation and shifts the focus. In this case, it provides an opening to end the repetitive impasse, offer an alternative, and actively discourage complaining.
To reflect on the impasse, you could say: “I hear you’re really aggravated. We’re struggling to problem-solve, and it seems like we’re stuck.”
Then, to end the stalemate, diplomatically offer an alternative: “Let’s try again this afternoon. I think we’ll be more successful later. I appreciate the time to think on it.”
Finally, it’s an opportune moment to discourage the natural tendency to complain. Lead with an appreciative request: “Thanks for the extra time. In the meantime, I’d like you to help me and the team. Everyone is stressed, and we’re all working hard to stay positive. Let’s refrain from venting about this to the team. We’ll feel better when we have a solution, and I don’t want to drag the team down with one more stressor. Thanks! I appreciate your help in protecting the team from additional stress.”
This correctly frames positive communication as a mutual responsibility. The leader is promising to protect the team and is asking for the same commitment. This might seem like a lot of effort, and it may be. Humans love to complain. It reduces stress by dumping it onto someone else. It’s entirely natural, but also poisonous.
Leaders can model a positive tone, conversation by conversation, and address it openly with the entire team. It’s helpful to acknowledge that frustrations are inevitable. Acknowledging helps people feel understood and valued. It also releases aggravation, so people can move onto problem-solving. That’s healthy. The more you focus the team on seeking solutions, the more it will become a team habit.
Productive team members will problem-solve. However, any chronic complainers will likely not pivot quickly. Their primary goal is to seek sympathy, not solutions. This is why chronic complainers are so toxic. They’d rather complain than contribute, so the rest of the team is left to carry the weight of their complaints and their problems. You may be surprised at how proactive the team can be when charged with protecting themselves from the worst offenders.
3. Refill the Energy Tank
The vast majority of my coaching clients are working much harder during this market volatility. As expected, they’ve vastly increased their client contacts. This is outstanding, and exhausting. Advisers are at high risk for burnout. Stress management research reveals that exhaustion accumulates when people chronically focus on work. It’s not enough to switch from the desk to the couch if your mind is still focused on the day’s challenges. Mentally unplugging is an important part of recharging.
While leaders can’t prevent adviser stress, they can encourage healthy practices. First, recommend the team disengage from office communication after work. In addition, encourage restorative activities during the workday and beyond. Any adviser who spends all day and more glued to a computer is not performing at their peak. Multiple studies show that physical activity significantly improves mood, reduces anxiety, and increases energy. Consider short breaks during the day. A five-minute walk, brief stretches, or a few minutes of deep breathing all lower stress. These simple exercises trigger the body to relax and counteract stress. Since stress is cumulative, it’s helpful to lower it proactively during the day. In addition, any regular activity outside of work is beneficial. One study found a short 20-minute walk, only three times a week, made a significant impact.
It’s nearly impossible to stay positive and productive while chronically exhausted. Leaders can protect their team’s resilience by building positive energy and encouraging healthy practices for their team and themselves.
And . . . When to Call the Professionals
When the brain encounters a threat, it immediately focuses on all the negatives. At the same time, creativity, innovation, and optimism shut down. During prolonged periods of stress, the brain may get stuck in negativity. Someone who is relentlessly negative may have slipped into chronic pessimism. Unfortunately, telling someone stuck in a negative mindset to “snap out of it” doesn’t work. It’s time for skilled help. Cognitive restructuring techniques are amazingly effective. I use them routinely with great results. However, if professional coaching is off the table, a gifted mentor can offer a helpful lift. Don’t forget to take care of yourself. Your team will benefit from your resilience as much as their own.