Staying in close contact with clients who have lost their jobs and working through all the many details of their present and future finances are important components to keeping them and your business on track.

Being thorough and empathetic to your clients’ circumstances will provide better customer service, which in turn leads to the “dirty word” of sales and possible referrals from friends who may be going through a similar situation, says Michael Aziz, regional vice president, sales investment products, Desjardins Financial Security in Toronto.

When speaking with clients who have recently been laid off make sure you cover all of these bases, from their emotions to the details of their pensions:

Make sure they call
To handle the situation correctly, clients, of course, need to make the first step of calling you immediately when they’re laid off. Emphasize to your clients the need to call you when a major life change happens, says Rosemary Smyth, a business consultant for financial advisors with Rosemary Smyth and Associates in Victoria.

Feelings first
People react differently when they lose their job, so take time to figure out the clients’ emotional state before hauling out the financial charts. A person close to retirement vs someone who was caught off guard with the job loss will probably have very different reactions, says Aziz: “You really [need to] understand where they are emotionally. Once you get past that step, you can start to work on the numbers to find out what’s the next step.”

Figure out expenses
Take a close look at the clients’ current financial situation and responsibilities. Once they become unemployed, you want to find out if they have any savings or access to cash, says Aziz. If they have been living beyond their means or just within their means figure out cash flow and how to pay for the next round of bills. “Do they have mortgage payments? Do they have car payments? Insurance? Kids in school? How are they going to meet all those obligations?”

Discuss details
Look into all avenues of revenue clients currently have and will be receiving from their former employers. Find out if and when they are going to receive a package, says Aziz. Take a look at their group benefits to see how long they will have them if at all.

Insurance is another issue that gets overlooked, as people don’t understand they could lose policies they had through the company, he says. Also, people often do not understand their pensions and how they work so discuss that as well, says Aziz. “You’ve got to really assess their whole situation.”

Spend time with the client
Working out all the details of the clients’ new financial situation is a time-consuming process, so plan accordingly. After the initial meeting make arrangements to see them again as soon as they receive their package so you can figure out the particulars, says Aziz.

Ask clients how they would like to proceed. See if they would like to meet every couple of weeks or once a month, says Smyth. “Talk to the client about what’s appropriate for them.”

Use your professional network
A strong professional network can help ensure the client get all the facts and the best deal. Staying on top of tax or employment law is helpful, but working with an accountant or lawyer directly can give another layer of depth to advice for clients, says Aziz: “The advisor may want to have a good relationship with a lawyer where they can guide [the client] and say perhaps you could do better on that package, or here are your rights.”

IE