📣 Please note: This feature is included in our Premium Plan. If you'd like to upgrade, please contact your Account Manager at Nectar.
What is Purchasing Power Parity (PPP)?
Purchasing power parity (PPP) is an economic practice that compares the purchasing power of various world currencies to one another to determine an exchange rate that allows you to buy approximately the same amount of goods and services in every country.
How does it work?
Each user inside of Nectar has a Country field in their profile. When that field is updated with the user's country, points are adjusted during redemption based on local purchasing power.
For example, 100 points in Switzerland might redeem for a reward priced
differently than 100 points in another country, ensuring fair value for all.
The Country field can be added to all users via Bulk Upload or Bulk Actions.
This field can only be edited by an Admin of Nectar. If the field is blank, it defaults to the United States.
Frequently Asked Questions:
Can PPP be turned on for only some countries in an account or does it have to be all or nothing?
It is all or nothing. This is the best way to ensure the equitable nature of PPP.
Is PPP an optional feature, or will it be automatically applied?
Optional. Your Nectar Account Manager can assist with turning the feature on.
What data does Nectar use to determine the appropriate PPP adjustments?
Nectar uses a trusted 3rd party source for this information that is dedicated to ensuring the accuracy of these ratios.
How frequently are PPP rates updated?
1x per year
Can admins override or manually adjust PPP calculations?
No
Will employees in different countries see different point values for rewards?
Yes, depending on the ratio of the country you’re in you will a different cost in points for an item.
How does PPP impact budget planning for HR teams?
In the end, all of these items are charged to the company in USD so it will remain the same for them.