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Written by Steve Bowden & Liz Pemberton, Business Strategy Consultants, AXA Wealth, June 2010
This information is directed at professional financial advisers only. It should not be distributed to, or relied upon, by retail customers
With the fast pace of the environment we live in today with it’s 24/7 technology and rising expectations, there is an ever increasing risk of stress. In fact the Health & Safety Executive (HSE) has indicated that stress is likely to become the most dangerous risk to business in the early part of the 21st century. Self-reported work-related stress, depression or anxiety account for an estimated 10.5 million reported lost working days in Britain and five million stressed workers in the UK.
Under existing health and safety legislation employers have a duty to undertake risk assessments and manage activities to reduce the incidence of stress at work.*
To help employers in taking preventative measures, the HSE has developed a risk assessment framework covering:
A structured questionnaire that seeks to understand staff levels of satisfaction with each of the above areas is the typical approach. Where a problem is identified, the employer should consult with staff to find solutions. This should be followed with an action plan spelling out the steps to be taken.
This is not all one sided. Employees also carry a responsibility in respect of stress management which involves highlighting feelings of stress or anxiety before they become a serious concern. Regular review meetings provide the opportunity for this type of discussion to take place.
Employer liability is greatest when an employee has expressed worry over stress and their anxiety is ignored.
Pressure and stress
Pressure is a different matter and can be a positive force driving creativity, productivity and innovation – particularly when it occurs in the context of a team pursuing a shared vision or goal, and where the pressure is to achieve the aspiration.
Stress on the other hand is excessive or prolonged and involves individuals feeling unable to cope.
The Chartered Institute of Personnel and Development (CIPD) believes that:
· people work more effectively with a participative management style
· people are better motivated at work when it satisfies their economic, social and psychological needs
· motivation improves by paying attention to job design and work organisation.
Financial planning firms
The incidence of individual stress is relevant in two dimensions to the owners/managers of financial planning firms. Firstly there is the duty of care to employees and the commitment to their wellbeing. Secondly there is the direct relevance to the impact on a client and the achievement of their lifestyle financial goals.
Let’s look at each in turn:
Stress at work
The CIPD advocates four main approaches to dealing with stress at work:
It is particularly in the latter two approaches that we can see some overlap with helping clients.
Lifestyle financial planning clients
Developing a strong, intimate understanding of clients’ hopes, aspirations, attitudes and behaviour is as important, if not more, than their level of investable assets (provided they value and will pay for the service you offer). Attitude and behaviour can erode wealth in just one decision.
Regularly communicating with clients’ and actively ‘listening’ to the way they describe their work, their family and their lifestyle will help you to spot any warning signs.
Delivering a transparent and interactive financial planning service that encourages the client to understand their current and future financial position, and reassures them of the normal expected investment behaviour can help to reduce the anxiety associated with a lack of understanding or loss of control.
If lifestyle financial planning is about helping clients to maximise the probability of achieving their lifestyle goals then we need to be aware of the impact of stress on the planning process. Considerations might include:
· establishing whether employed clients have a wellbeing policy and support in their workplace
· establishing how clients manage stress personally (sport/meditation etc)
· discussing the impact of stress on health and wellbeing and work/career progression. Illustrate the impact on lifestyle goals if a client is signed off from work for a prolonged period or is pensioned into early retirement.
Being able to provide employees and clients with access to trained counsellors is a proactive way of helping without getting so involved that the dynamic of your relationship is compromised.
As an employer or financial planner, your role is to lead, guide, manage and support, using techniques such as coaching to facilitate the best results for all involved.
Being a coach is not the same as being a counsellor and stress levels might only be exacerbated with poor management of expectations, misconceptions of role or lack of competence to deal with the problem effectively. The most appropriate course of action for an employee or client experiencing high levels of stress especially for prolonged periods of time is to refer them to someone with the competence, qualifications and credentials to really help.
Employees of large organisations typically benefit from Employee Assistance Programmes giving access to a confidential free phone number that puts them in touch with specially trained staff – available 24 hours a day, 365 days a year, to discuss any concerns or anxieties whether work related or personal. This type of service enables the employee to seek help without revealing confidential issues to a line manager or colleague. Ultimately they are provided with qualified, trained support and guidance on how to manage their problem.
Happy employees are more productive, and happy clients will be much easier to work with. Isn’t this the type of service you could extend to your employees and those clients that do not benefit from this valuable offering from an employer?
The signs of stress
Sources and references
* Health & Safety at Work Act 1974, Management of Health & Safety at Work Regulations 1999 (SI 1999/3242) and Work Time Regulations 1998 (SI 1998/1833).
Economic and Social Data Service. (2009) Labour force survey. Available at: http://www.esds.ac.uk/Government/lfs/
Health and Safety Executive. (2007) Stress-related and psychological disorders [online]. Available at: http://www.hse.gov.uk/statistics/causdis/stress.htm
Health and Safety Executive. (2004) Management standards for work-related stress. London: HSE. Available at: http://www.hse.gov.uk/stress/standards/
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