How to give negative feedback to your team

Managing money often comes more naturally to financial advisors than managing people. As a result, some may struggle with providing negative feedback to their associates and assistants.

“Advisors don’t often get into this business to lead people, and because of that, they naturally tend to dislike or avoid managing or monitoring their staff,” said Alice Ambrosie, vice-president and head of practice management with CI Global Asset Management in Toronto.

“But unfortunately, the way that the industry and just even human nature has evolved means that advisors can’t afford to take a passive approach to running their teams.”

Here are some ways that advisors can prepare for those difficult conversations and take an active approach to running their practices.

Have check-ins early and often

While giving negative feedback to employees is never easy, discussing expectations and setbacks with staff early and often can help prevent issues down the line.

Advisors should have monthly or quarterly one-on-one meetings with each team member to ensure they’re on the right track, Ambrosie said.

This allows for “natural coaching” and prevents advisors from having to do knee-jerk performance management, or in more serious cases, firing, she noted.

“As long as … you have a mechanism to check in to make sure that things are getting done on a relatively frequent basis, then that is already leaps and bounds ahead of the current or most common ‘coaching’ that advisors are doing today,” Ambrosie said.

Having check-ins routinely about what is going well and what can be done better with your entire team also creates a stronger bond within the group, said Tina Carthigaser, a partner and director of operations with Advice2Advisors.

“You’re doing it so often, it feels natural,” said Carthigaser, who has a background in human resources.

Set clear expectations, monitor performance

Set clear expectations with each staff member right off the bat to ensure they succeed, said Dan Collison, managing partner with Advice2Advisors, a coaching firm in Toronto.

Advisors should make each employee aware of their responsibilities, the key performance indicators they should be meeting and how they can help achieve the practice’s goals, he said.

“And then every individual on the team [is] like an archer: they’ve got their quiver; they’ve got their arrows; their expertise; they understand clearly defined roles, which is critical,” Collison explained.

Ambrosie suggested setting both structural and day-to-day expectations.

Structural expectations may include the team’s goals and values, as well as how each staff member can contribute to those goals and values, she said.

“Those expectations allow everyone on the team to be operating under the same culture and vision, but also understanding their individual identity within that vision,” Ambrosie said.

Day-to-day expectations could include what time an employee should be in the office, what time they can expect to go home, whether they’ll be expected to work late occasionally, the dress code and how to communicate with the team, she explained.

Advisors should also have ongoing discussions with staff about how they’re “reacting and how they’re contributing to each of those business goals,” Collison said.

Ambrosie agreed, saying that upholding expectations is even more important than setting them because doing so creates a strong and respectful team dynamic.

Prepare your message

If you feel as though you’ve exhausted all your options, take time to document examples of the issues an employee is having and prepare yourself to have a conversation with them.

Advisors should deliver this message in a way that is transparent and constructive while drawing on “solid evidence and examples” of those issues, Ambrosie said.

For example, you can tell your employee what they’re doing that isn’t working well, how it’s important for every team member to uphold the standards of the business and ask the employee what they and the business can improve on, she said.

“So it’s a very honest conversation. It’s also very constructive and it results in action and a plan,” Ambrosie said, adding it’s best to avoid the “feedback sandwich” approach as your message may get lost or come across as disingenuous.

The feedback sandwich approach inserts negative feedback between two pieces of positive feedback in an effort to soften the blow of criticism.

When delivering negative feedback, make sure you’re identifying the problem in a simple and respectful way, while also stopping to listen to what your employee has to say, Carthigaser said.

Working through the problem with the employee can also be helpful.

“Look at the options that might be available to help them — it could be job shadowing another person, it could be training on software, maybe it’s coaching or technical training. Ask them what they need and then get them the help,” she said.

If you’re offering negative feedback to an individual employee, be mindful of privacy, Collison suggested.

“If it’s a one-on-one discussion, keep them that way. You don’t want to spread negativity,” he said.

Advisors can also register for workshops and training sessions to build on their management skills and better prepare for having these conversations with their teams.