What is PPP?
Purchasing Power Parity (PPP) is a method of adjusting the cost of goods or services to reflect the relative value of currency and cost of living in different countries. In HiThrive, PPP is used to ensure that employees across global offices experience similar value when redeeming rewards in the HiThrive marketplace.
For example, a $25 gift card in the U.S. might cost more or fewer points in another country depending on the local purchasing power. This approach promotes fairness and parity across teams working in different economic conditions.
Benefits of PPP
Promotes fairness across global teams
Ensures equitable access to rewards
Simplifies budgeting and communication for People & Culture teams
How PPP Works in HiThrive
Baseline: The United States is used as the baseline with a PPP multiplier of 1.0.
Point Adjustments: Countries with higher or lower purchasing power are assigned a multiplier. These multipliers adjust the point cost of rewards so employees receive equitable value.
Example: If a reward costs 2,500 points in the U.S. and the PPP multiplier for another country is 2.0, the same reward would cost 5,000 points in that country.
How to Enable
Company-Wide Setting: PPP is applied at the company level. It cannot be enabled or disabled for individual countries.
Non-Editable Multipliers: PPP rates are assigned based on annually reviewed global data sources. Customers cannot edit or override these multipliers.
Annual Refresh: HiThrive refreshes PPP multipliers once per calendar year to ensure accuracy and fairness.
Important Considerations
PPP does not impact point allocation, only the redemption value of rewards.
Employees in different countries may see different point costs for the same item in the marketplace.
Transparent communication is encouraged so employees understand that point pricing is adjusted to promote parity—not favoritism.
For questions or support on enabling PPP for your organization, please reach out to your HiThrive Account Manager or help@hithrive.com.