Evolving Landscape of Employee Benefits

Paula Stafford, Sr Director, Global Defined Contribution & Canada and Switzerland Defined Benefit at Dow

Paula Stafford, a finance powerhouse, steers Dow's Global Defined Contribution and Canada & Switzerland Defined Benefit programs. With a sharp mind honed at Michigan State, she's a CPA, committee leader, and champion for women's empowerment. From Delta Community College investments to T.Rowe Price advisory, her expertise spans borders and fuels opportunity.

Please share with our readers your career journey and current roles and responsibilities.

My career journey began in a finance organization and have dedicated the majority of my professional journey in this field. Specifically, my focus has predominantly been on treasury, where I have played a pivotal role in overseeing the assets for our pension plans. This encompasses managing both our defined contribution plans, akin to a 401k, and our defined benefit plans. I also had the opportunity to spend a significant period in Argentina where I successfully ran our finance function.

Currently, my responsibilities have evolved, and I am now tasked with overseeing our defined contribution plans globally. In addition, I manage our defined benefit plans in Switzerland and Canada, as well as supervise some of our non-qualified plans. The nature of my role is so diverse each day. My daily routine may commence with a 5 a.m. call with counterparts in the UK or Switzerland, followed by ongoing engagements with teams across different time zones, including Asia, well into the night. The diversity of the challenges I encounter and the range of needs I address make each day intriguing and dynamic. It's a professional landscape that demands adaptability and offers a constant stream of interesting and varied experiences.

What are some of the changes you have noticed in the past few years?

Over the past few years, we've witnessed a significant shift in the landscape, with companies transitioning from defined benefit plans to defined contribution plans. While this evolution has undoubtedly improved the sustainability of company balance sheets, it has also placed a greater responsibility on individuals to save adequately for retirement and understand how to manage their assets effectively. Our concerted efforts have been directed towards developing solutions, starting with the more mature market in the U.S., known for its well-established defined contribution space. Our goal is to provide individuals with the option to move into a guaranteed income product, ensuring a reliable income stream during retirement. This mirrors the security offered by the DB plan or retirement plan that is paid out monthly or on an annual basis.  We are actively working on implementing this initiative into our plan, with the aim of introducing it later this year.

What are some of the technological trends you have implemented?

The advancements in technology are continuous and it has played a crucial role in our organization. By collaborating with a dedicated firm, we are navigating the complexities of working across various platforms, involving our record keeper and insurer. The goal is to seamlessly link these platforms, ensuring a smooth transition for participants looking to opt into an annuity and initiate their income stream. This ensures that individuals can make informed decisions about opting into annuities and kickstarting their income streams.

"Regular discussions with industry counterparts provide valuable insights into the evolving landscape, facilitating a proactive role in shaping the direction of the field."

A broader challenge we face in the benefits stream is that with the increasing pace at which we operate, there is less time people spend learning what benefits they have in a company. The real edge lies in creating a seamless experience for individuals to comprehend and take advantage of the offerings available to them.

Can you share some of the initiatives you implemented to overcome the challenges?

In recent years, we have forged partnerships, particularly with our managers, to address the crucial aspect of guiding individuals on their financial journey toward retirement. Collaborating with various managers, we have taken the initiative to bring them in-house, captured the presentations, and made those available on our system. Our ongoing efforts include working towards incorporating this valuable resource into the training programs for new hires and making them aware that early financial planning in one's career lays the foundation for a secure and prosperous retirement.

How do you envision the future of this industry?

In the current world scenario, marked by heightened volatility, it's evident that various factors can disrupt the financial space including the individuals' savings. Natural disasters like hurricanes or floods, add another layer of complexity, altering spending priorities and impacting the ability to save. Regardless of the challenges, I think where we are in the world right now is a very interesting time with geopolitical risks reaching a peak and a noticeable increase in the frequency of natural disasters. Along with it the rapid progress and evolution of AI contribute to the evolving financial landscape. I believe within 5-10 years there will be significant advancements resulting in advanced resources with easy accessibility, allowing individuals to take advantage and thrive in the realm.

What is your piece of advice to your fellow peers?

Adapting to the ever-changing regulatory landscape and staying abreast of external developments poses a constant challenge. It's crucial not only to navigate these changes but also to maintain a broad network, engaging with peers and vendors. Regular discussions with industry counterparts provide valuable insights into the evolving landscape, facilitating a proactive role in shaping the direction of the field.

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