Written by Vicky Smith, co-author of Brave New Leader: How to Transform Workplace Pressure into Sustainable Performance and Growth.
Anxiety in the workplace is not uncommon, but in the finance sector, the stakes can feel particularly high. Financial professionals are constantly navigating the unpredictable nature of the markets. Market volatility, sudden fluctuations, and unexpected events can create intense pressure to make rapid decisions while managing risk. The fear of making a wrong move or missing out on opportunities can weigh heavily on individuals, leading to heightened anxiety levels.
Not only do financial professionals manage large sums of money, but they are also responsible for managing the wealth and investments of their clients. Meeting and exceeding client expectations is paramount, but it can also be incredibly stressful. Clients may have varying risk tolerances, investment goals, and time horizons, requiring tailored strategies and constant communication. The pressure to deliver results and maintain client satisfaction can contribute to anxiety, especially during challenging market conditions. They have to make split-second decisions and navigate complex regulatory environments.
The finance industry is notorious for its demanding work culture, with long hours and high expectations being the norm. Financial professionals may find themselves working late into the night, sacrificing personal time and relationships in pursuit of professional success. Performance is often measured in quantitative terms, such as returns on investment, profit margins, and client retention rates. Financial professionals are continually evaluated based on these metrics, which can create a culture of competition and comparison. The internal pressure to meet or exceed performance targets can be overwhelming, leading to heightened anxiety levels, a fear of failure, fast-tracking people to stress, and ultimately burnout.
Additionally, with regulatory bodies such as the Financial Conduct Authority, the Financial Ombudsman Service, the Financial Services Compensation Scheme and the Bank of England continually increasing the level of fiscal management, governance, scrutiny, and bureaucracy, the external pressure on financial professionals is intensifying. There are around 2.5 million people working in the UK’s financial industry, the potential loss to business when staff are off sick with stress, is immense. Often the period of sickness absence can run into months for those who are burned out.
It is, therefore, essential to pay attention both at an individual level for yourself, and at a team level to support your colleagues, for the warning signs of anxiety. These can include:
- Physical Symptoms: headaches, muscle tension, fatigue, dizziness, and gastrointestinal problems, racing heartbeats, shortness of breath, or sweating in response to stressful situations.
- Emotional Distress: heightened emotional distress, such as feelings of worry, irritability, or agitation, restlessness, difficulty concentrating, or racing thoughts interfering with the ability to focus on tasks.
- Behavioural Changes: Changes in behaviour, avoidance behaviours, such as procrastination or reluctance to take on new challenges, withdrawn or socially isolated, avoiding interactions with colleagues or clients.
- Perfectionism: An excessive need for perfection and fear of failure, setting impossibly high standards, and intense self-criticism if falling short of expectations.
- Sleep Disturbances: disruptive sleep patterns, leading to difficulty falling asleep, staying asleep, or experiencing restful sleep. Insomnia and other sleep disturbances can further exacerbate anxiety symptoms and impact overall well-being.
There are likely to be negative effects of anxiety on performance, which can include:
- Impaired Decision-Making: impaired cognitive functioning and decision-making abilities, difficulty weighing up the risks and benefits of different courses of action, leading to indecisiveness or analysis paralysis.
- Decreased Productivity: lack of concentration and focus, leading to decreased productivity and efficiency, easily distracted, or struggling to complete tasks in a timely manner.
- Increased Errors: increased mistakes or errors in judgment, leading to heightened stress and anxiety.
- Difficulty Managing Stress: difficulty coping with the pressures of the job, feeling overwhelmed by stress, leading to burnout, absenteeism, or presenteeism (being physically present but mentally absent).
- Strained Relationships: with colleagues, clients, and supervisors. Individuals may become more irritable, impatient, or withdrawn, making it difficult to communicate effectively and collaborate with others.
Recognizing these warning signs and understanding the impact of anxiety on performance is essential for both individuals and organisations in the financial industry. By addressing anxiety early and implementing strategies for managing stress, financial professionals can maintain peak performance and well-being in the face of workplace pressures.
The good news is that the stigma around mental health concerns is gradually changing. Many organisations have implemented very good strategies to help employees who are struggling, especially in areas of mental health awareness, Employee Assistance Programmes, and resilience training programmes. There is still some way to go, however, to continue reducing the stigma and enabling people to speak up. Mental health problems continue to rise, despite the substantial efforts organisations have already made. It is important, therefore, to understand the source and depth of the problem, instead of ‘flinging mud at the wall and hoping some of it sticks’. It means that managers need to create a culture of psychological safety for their teams, so that people feel comfortable speaking up and trust their colleagues to be respectful and supportive if they are struggling.
This does not need to be a complex and expensive task. One quick, easy way to start this process is to simply ask people, in a risk-free way, how they are doing and what it’s like to work where they do. Anonymised team data can then be used as a catalyst for a meaningful conversation with the team, enabling them to identify some small, yet significant, changes they can make at a local level. This is a great way to offer a voice to everyone in the team, using live data that is anonymous. It acts as a pressure release valve as issues and challenges are discussed and small-step changes identified.
If you want to know more about practical ways to start the process, our book Brave New Leader offers you a step-by-step guide to understanding the depth of the problem in your own team, as well as a simple way to start addressing the issues. It’s also packed with lots of information about the scale of the problem, as well as tips and tools to help you, and your team, become more resilient and cohesive as a team.
About the Author
Vicky Smith is passionate about sharing her knowledge and has more than 20 years of consulting, coaching, facilitation and training experience in locations across the globe. She holds an MSc in Organisation Development and Consultancy, an MSc in Psychology and an MSc in Applied Health and Exercise. Her PhD research focuses on psychological safety within the workplace. She is also the co-author of Brave New Leader: How to Transform Workplace Pressure into Sustainable Performance and Growth.
