Client stress in times of uncertainty

By Lee Rossini

Although stress and anxiety are often used interchangeably, they refer to two very different states. Stress is the result of external conditions whilst anxiety arises internally.

Currently, we find ourselves facing a set of external stimuli that are completely out of our control and cannot be removed. We are all feeling very stressed in these uncertain times, especially those of us facing financial hardship. As financial advisers, effectively managing stressed clients is often part of the financial advice process but now more so than ever.

In 1966, psychologist Richard Lazarus developed a theory that states that stress is experienced when a person perceives that the  'demands exceed the personal and social resources the individual is able to mobilise'. He proposed a 2-step approach to stress. The first step is to identify a potential harmful, threatening or challenging event. The second step is a personal appraisal of the external stressor, namely, identifying what can be done about it and whether it can be effectively dealt with. If there is doubt about whether the stressor can be dealt with, then stress will ensue.

Clients are faced with a huge amount of uncertainty and the external stressors are too numerous to mention, but specifically questions such as:

• How much will I lose on my investments?
• Will I have enough income to survive the next few months? What will happen if global markets never recover from this pandemic?
• How sick will I be if I am infected by COVID-19?
• Will my elderly parents survive the virus?

The circumstances are feeling harmful, threatening and extremely challenging resulting in most clients feeling highly stressed. In addition, the stressors will depend on the individual client circumstances. For example, the stressors on a client who owns a business will be different from those of a client who is employed and has been reassured that the company will continue paying their salary. We experience stress differently and our means of coping vary as well.

Your role is to assist clients in identifying what can be done to manage the stress right now. How can you best support your clients, especially the more vulnerable clients?

• If possible, assist clients to reframe the issues to appeal to a strength or a more positive perspective. Brainstorm with clients and remind them of how they dealt with external stressors in the past. Focus on what they can do in the circumstances and where their skills lie.
• Focus on the immediate problems facing the client. Ask the client what their most pressing concerns are. After giving the client the opportunity to voice what they feel is their most pressing concerns, discuss any other issues you feel are also very important. After listing the concerns, prioritize them and set about finding solutions.
• Assist the client to make a to-do list. Even if the actions that can be taken are minor, they will support the client to feel more in control and a little less powerless in the circumstances.
• Suggest to clients that they use this lockdown time productively. Assist with drawing up new budgets and check in with clients to make sure all their important documents are in place. This time can also be used to sort out finances and draw up action plans.

Most clients are feeling overwhelmed and uncertain how to deal with such a massive outside stressor. Although it is impossible to remove the stressors, your role is to ask clients what you can do to best support them and to support them to best manage the stress and the new reality. Remind clients to be in the present and to be in control of things within their reach. Encourage them to follow the lockdown requirement including physical distancing, hygiene procedures and strict isolation, if necessary. This is a chance to demonstrate real and authentic value to clients, to remind them that no matter the outcome of this pandemic, you are managing their financial situation as best you can and will be walking beside them all the way.