As the domestic and global financial landscape grows more complex due to client needs and, by extension, the work required of advisers, balancing these factors along with increased pressures from external forces, such as the CSLR levy, is leaving advisers prone to burnout.
“Things like excessive workload, cognitive load, not enough time to switch off, people not looking after their health and prioritising that well enough, importantly consistently enough, not dealing with it [leads to burnout],” Verse Wealth chief executive Corey Wastle said.
Advisers burning out is problematic for the industry as a whole, especially if an adviser chooses to leave. This is particularly a problem for professional year advisers who are often being overworked and stifled in their progression, causing burnout.
“I know too many professional year candidates who get stuck on quarter one and quarter two,” Hayes & Co Insurance Services financial adviser Trish Gregory told the ifa Show podcast in August.
“Not because they’re not fantastic or talented or capable of moving through to quarter three, but because the business either got a bit ahead of themselves or they are taking advantage of this person.”
With adviser numbers generally steadily falling for the last few years, the need to retain those within the profession is becoming more important. By extension, managing burnout, too, is crucial.
For Wastle, perspective is a cornerstone of managing burnout.
“[My own] burnout wasn’t just a consequence of working hard, it was also a consequence of feeling like we weren’t getting the results that reflected the immense effort we were putting in,” he told ifa, reflecting on the issues he was facing when starting Verse Wealth.
Wastle highlighted what he thought to be one solution: “Not focusing on productivity over impact. What you do is far more important than how much you do and how quickly you do things.
“Think about the 80-20 Pareto Principle. Eighty per cent of your results come from 20 per cent of your activities. Now, the numbers might not be accurate, but the concept is very relevant and holds a lot of truth.”
Wastle also suggested that looking at your life holistically is important, looking at how you can introduce changes in your personal life that allow you to enjoy time away from work more.
“It’s easy to get caught up in a productivity trap,” he said.
“But really. what ultimately people should be aiming for is impact and effectiveness.”
I’d suggest another issue is chronic undercharging by a lot of advisers where they are trying to service too many clients and not being paid enough. I’ve heard of some advisers charging $2,000 pa for ongoing advice when the industry average is $4,700 pa according to Adviser Ratings!