How does COLA work with e-gift cards?
Fond automatically adjusts the value of rewards points based on the recipient’s cost of living. For example, the cost of living adjustment for India can set to .50 (50% of the amount in the US) to reflect the difference in cost between the two countries.
In this model, a 10 point recognition worth $10 in the US will result in 10 points being given to an India-based employee with a local buying power of $5 (50% of $10).
When an employee redeems their points for items other than gift cards, the value of the items they are redeeming reflect their local cost of living and the points required is fixed, based on the cost of the item.
When redeeming points for gift cards, (since they are a cash equivalent), the cost of the gift card (in points) also reflects the prevailing exchange rate from USD to INR on any given day (meaning the points required to redeem for a gift card may change based on changes in exchange rates).