'If you don't have a robust program that's meeting needs, you're likely going to have higher turnover,' says VP of Total Rewards at Sun Life
For employers wanting to remain competitive in attracting and retaining talent, a “Total Rewards” package is becoming the new standard. But what does it mean and is it really an effective solution to improving workplace wellbeing?
“I see Total Rewards as a holistic approach to all things that really takes care of an employee’s wellbeing,” said Nicole Montpetit, vice president of Total Rewards at Sun Life. “It describes what an organization offers to its employees in exchange for their talent, their skills and their commitment.”
She argues that the foundation of Total Rewards lies in the broader concept of an employee value proposition (EVP), which reflects what a company offers in return for an employee’s talent and commitment. Within this framework, having a Total Rewards program ensures employees feel valued not just in salary, but in all the ways a workplace can support them.
She emphasized that while not all organizations have adopted a total rewards strategy, doing so can be a significant differentiator, especially in today’s multigenerational workforce. The scope and execution of such a strategy often depend on an organization’s size, budget, and broader talent goals, but she argues that a more holistic approach yields better results.
“The more all-encompassing they can be, the better,” she said, pointing to the wide range of employee needs that go beyond just base salary. These include bonuses, incentives, and critical health benefits such as dental, mental health, and disability coverage. Family-building support and employee assistance programs (EAPs) would also be included in an effective total rewards program.
Montpetit also underscored importance to focus on long-term financial wellbeing. She suggested that offerings like retirement savings plans, profit-sharing, an emergency fund and stock ownership can empower employees to plan for key life events, whether that’s buying a home or simply building an emergency fund.
She further stressed the value of paid time off, calling it “particularly valuable” to employees at Sun Life. Whether it's for vacation, recovery from illness, or caregiving responsibilities, she said, “time away for vacation or caring for themselves or others” is crucial for both well-being and retention.
According to Fidelity’s 2025 Workplace Outlook, “health is the new wealth.” The spectrum of a total rewards strategy consists of compensation, health and wealth benefits, strategic benefits, work-life balance and experiential benefits.
Consequently, the same report found the top three benefits that employees would add on - beyond what’s typically included in benefits - are having a compressed workweek, remote/hybrid work and flexible working hours.
So why are some employers still not adopting this approach? Montpetit believes it often comes down to size, budget and what their talent strategy is. But she makes clear that a more comprehensive rewards offering can give employers an edge. With multiple generations in the workforce, she argues companies need to provide flexible, responsive options that reflect diverse life stages and needs.
That adaptability is what defines a competitive Total Rewards strategy in 2025, she noted.
“We’re in the era of transparency and personalization,” Montpetit said. “Employees want something that's relevant, that they can understand and that supports them in those moments that matter in their life and career.”
As for what’s relevant among employees, she pointed to examples like support for fertility treatments or hormone therapy, flexible benefits for pet-sitting or gym equipment, and personalized wellness supports.
When asked how total rewards strategies contribute to workplace wellbeing, Montpetit pointed to Sun Life’s internal data that found 87 per cent of employees report good wellbeing, and 92 per cent say their immediate manager supports that wellbeing.
“When our employees’ wellbeing—whether it be physical, financial, mental, or social—is well taken care of, it can really contribute to performance,” she said. “If you don’t have a robust program that’s meeting those needs, you’re likely going to have higher turnover. It’s going to be harder to attract talent.”
Montpetit acknowledged that creating a comprehensive total rewards strategy is a complex undertaking but emphasized that certain metrics can offer clear insight into its effectiveness. She suggested that offer acceptance rates and aligning internal employee programs with a company’s external mission can serve as another useful indicator of whether an organization is attracting the right talent.
“Ninety percent of our employees are enrolled in making voluntary contributions to our defined contribution pension plan,” she noted, adding that this level of participation, consistent across generations, signals both employee commitment and the company’s role in fostering long-term financial well-being.
So where is the concept headed next? Montpetit underscored personalization in total rewards will only increase, pointing to employee “journeys” as a strategic opportunity to deliver meaningful support aligned with individual life stages.
She explained helping employees create journeys is focused on providing personalized guidance from experts, access to care provider support network and digital tools to support specific health navigation moments like menopause, fertility, chronic illnesses - or caregiving that complement other benefits) that a company might provide.
“People will need things at different life stages,” she added. “Having that choice and flexibility becomes really important versus static programs that maybe don’t have optionality.”
