Skills like building rapport, effective listening and empathy are the qualities most valued by advice clients, according to research from the Association of Financial Advisers (AFA).
The Association, in conjunction with The Beddoes Institute and Zurich, has released a new white paper called ‘The Trusted Adviser’, which analyses the core skills of highly successful advisers. The study, which was based on interviews with clients of the AFA’s Adviser of the Year nominees, found that interpersonal skills ranked far above qualities like product knowledge and technical skills in terms of value.
82% of the 500 clients surveyed stated that their advisers demonstrated outstanding interpersonal skills. Specifically, these included communication skills, the ability to build rapport, demonstrating care for the client, and identifying and understanding their needs.
The Beddoes Institute’s Dr Rebecca Shiels said that the results demonstrated that while technical competence was vital for success, it was viewed by clients as a ‘hygiene factor’ and what differentiated advisers was emotional intelligence (EQ).
“EQ refers to the traits or skills that determine how well a person interacts on a social level. It’s a predictor of their social effectiveness,” Dr Shiels said.
She said that EQ was very important in professions where social interactions and relationships are at the core of the job, like financial advice. “The higher your level of EQ, the better outcomes you’re going to have professionally.”
The good news for advisers, said Dr Shiels, is that a person’s EQ can be improved: “This is really relevant to the profession… because obviously (EQ) is one of the most important elements in a trusted client-adviser relationship. And for those that don’t have it naturally, or are not predisposed to having a good EQ, you can actually develop it with the right training.”
According to AFA CEO, Brad Fox, this has significant consequences for training, development and recruiting within the industry.
“Members of the AFA have proved by way of record attendances at our road shows and Conference, and participation in our professional designations program through Campus AFA, that they are committed to life-long learning,” Mr Fox said.
… consumer trust of financial advisers is at a low point, this paper demonstrates what is required by the advice industry to correct these perceptions
“The Trusted Adviser provides the evidence that consumers value the practical outcomes of this training – outcomes that create a sense of trust; of a shared journey. And in the light of recent reporting on research that says consumer trust of financial advisers/planners is at a low point, this paper demonstrates what is required by the advice industry to correct these perceptions.
“To be a leading adviser in the eyes of consumers, you need to be both technically competent and soft-skill proficient.”
Philip Kewin, General Manager Retail Life and Investments at Zurich, which sponsors the AFA Adviser of the Year Award, said the research collected from the nominees’ businesses was extremely useful for identifying future industry needs.
“We believe the insights gleaned from The Trusted Adviser will help the industry as a whole develop a value proposition that encourages more Australians to seek financial advice,” Mr Kewin said. “It will also lead to education and training programs that equip advisers to form long-term, trusted relationships with their clients and in the process, transform their businesses.”
