3 valuable emotional wellbeing benefits to outsourcing administrative tasks

There is a lot that goes into satisfying a client and, in the world of financial planning, helping them to achieve their long-term goals.

It can involve vast amounts of time spent researching the right options for their investments, examining their savings, building a cashflow model, and dealing with the various administrative minutiae that is vital to delivering a comprehensive and reliable service.

All of that is before the relationship dynamic is factored in, which requires a commitment of time towards building trust and understanding a client’s needs, wants, and long-term objectives.

It can leave very little time available for, firstly, growing your business, and secondly, focusing on your own life and emotional wellbeing.

As the proverb goes: “practise what you preach”.

It is one thing to tell clients to pass on the responsibility of their financial plan to you so they can better focus on their personal lives and working towards their long-term goals, when you don’t allow yourself the same freedoms.

Read on to discover three valuable benefits to your emotional wellbeing that outsourcing your administrative tasks can deliver.

  1. Outsourcing can reduce stress, lighten your workload, and allow you to focus on your client relationships

Your time is a valuable commodity for both you and your clients. In working towards helping clients reach their desired lifestyle and long-term goals, there is a considerable amount of research, administration, and checks and balances that need to take place.

A variety of tasks can eat up valuable time such as:

  • Compiling market updates
  • Completing due diligence checks on new clients
  • Updating client files
  • Recording meeting notes
  • Undergoing compliance checks
  • Addressing technical tasks
  • Preparing annual review documents.

It can seem tedious when your time could be better spent on the core of successful financial planning — fostering trusting relationships with your clients and understanding their goals.

In outsourcing your administrative tasks, you free up time to focus on developing the bond with your clients. You also add in the greater safety net of added accountability in ensuring all tasks are completed diligently and without error.

According to Harley Therapy, the act of delegating can help us trust others, feel more energised, challenges negative misconceptions, and pushes us to communicate more clearly. Ultimately, this can improve emotional wellbeing and reduce associated stress.

The National Library of Medicine reports that, in the U.K, almost 180,000 people die annually from stress-related illness. Research from the British Heart Foundation shows that stress is a key contributor to heart attacks and strokes.

So, reducing your workload and subsequently your stress levels could literally be a life-changing decision.

  • Outsourcing can reduce costs and give you more time to grow your business

The issue of manpower can greatly increase costs and shrink the amount of time you have available for working on growing your business.

Multi-advice practices can spend significant amounts on recruiting internal paraplanners. That cost can multiply if that paraplanner decides to leave for the opportunity to become a financial adviser elsewhere. The money spent on recruiting and training them is effectively lost and the process needs to begin again.

Even if the paraplanner opts to stay with the firm and is promoted to become a financial adviser, there will still be a cost associated with replacing them.

In outsourcing the work of paraplanners and your administrative tasks, you effectively pass on the responsibility and cost of recruiting and training new members to the external provider. This, in turn, can help boost your business’s bottom line.

The added freedom provided for your own time, as well as your firm’s ability to adjust to increased workforce requirements, can help you better deal with a sudden influx of new business.

Typically, an onslaught of new client referrals can result in delays as in-house teams struggle to deal with the spike in their workload. However, paraplanning agencies are designed to deal with sudden increases in business and are tailored towards providing trained technical expertise at short notice.

This not only solves the issue of potential slowdown, but also ensures that in the rush to meet increased demand, errors and mistakes aren’t made. It also maintains the quality of fact-finding, suitability, and other associated reports.

This, in turn, reduces the potential for client complaints and the costs from any negative fallout.

Illness and holidays can have a similar knock-on effect to sudden increases in trade, as typically smaller inhouse teams try to adapt to a temporarily diminished team and an increased workload. This can lead to working significantly longer hours and result in emotional and physical fatigue.

Outsourcing can provide you with round the clock access to the necessary services, so you can relax and not worry about the short-term effects of finding cover. The firm to which you outsource your workload will be responsible for filling those gaps.

At the end of the day, apart from the obvious peace of mind provided, the reduced costs and increased freedom obtained from outsourcing can allow you to allocate more of your time towards seeking out new clients and generating further growth for your firm.

  • Outsourcing can help you have a healthy work/life balance and time to focus on yourself

FTAdviser reports research that shows most Brits do not trust financial advisers. 57% say they outright did not trust financial advisers, with this figure rising to 65% among those aged 55 and over.

This is especially alarming as Wise Living Magazine reports that 48% of Brits can’t answer basic questions about personal finance including the definition of an ISA, the difference between fixed- and variable-rates, and what an annuity provider does upon retirement.

Overall, 88% of Brits say they lack confidence with their finances and 32% say it has a negative effect on their mental health.

So, for many people, good quality financial advice could have significant benefits to their quality of life. Outsourcing can help free up your time to build these relationships and overcome any stigma that potential clients might have towards the financial advice profession.

It is important that you believe your own rhetoric though and lead by example in finding the time to enjoy your own life and focus on your own goals. By doing this, you’re better able to deliver for your clients.

Outsourcing your workload can gift you a better work-life balance and go a long way towards giving you the necessary time to foster trusting, long-term, client/adviser relationships.

Get in touch

If you find time constraints and workforce related costs to be a roadblock to your ability to grow your business, it might be time to explore outsourcing by emailing us at hello@eparaplan.co.uk or calling us on 01733 699071.

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