Chinese Company Gifts Renovated Flats To Employees After 5-Year Service To Retain Top Talent

Taking employee retention incentives a step further, a Chinese company has rolled out a housing scheme that offers renovated flats to employees, who have completed five years with the firm. The move by Zhejiang Guosheng Automotive Technology Co. Ltd., which specialises in automotive fastener products, is being viewed as a measure to improve workplace stability.

As per a report in the South China Morning Post, the firm announced its decision to distribute 18 flats to employees on social media. A job posting by the company's senior executive stated that employees who remain with the company for five years would be eligible for a complimentary flat.

Wang Jiayuan, general manager of the firm, told Chinese financial newspaper National Business Daily that the significant migrant worker population in Wenzhou, where the company is located, played a big role in their decision. With the refurbished flats, the firm aims to reward skilled managerial and technical employees.

“This year, we’ve distributed five flats. Next year, we plan to allocate eight more, with a total of 18 planned over three years,” he told the outlet, the SCMP report mentioned.

As per Wang Jiayuan, the company’s goal is straightforward. It hopes to "attract exceptional talent and retain our core management team.”

All the apartments are situated within a five km distance from the company. The flats vary in size from 100 to 150 square metres. A second-hand home in this region costs 7,000 to 8,500 yuan (Rs 89,000 to Rs 1.08 lakh) on average per square metre.

Workers must sign a housing agreement and can shift after the company finishes renovations. Once they finish five years of service, the home will be officially transferred to them, and employees will have to repay the renovation costs to the organisation.

Wang revealed the company has procured 18 flats, at an investment of over 10 million yuan (Rs 12.7 crore). This year, five houses were distributed. Two of these were awarded to employees who transitioned from entry-level roles to management positions in the firm.

Wang added that the roles available in the firm require a relatively high skill set, time and experience; they are not positions that new graduates can master instantly.

The idea behind offering these benefits, he revealed, was to enhance quality management and lower operational costs. The firm also hopes to attract top-tier talent from cities like Shanghai and Suzhou.

“If these employees work diligently, helping the company save a million yuan annually isn’t out of the question, right?” he stated.

Earlier, Chinese retail company Pangdonglai had also made headlines for prioritising employee well-being. It implemented a “grievance award” and introduced “unhappy leave” to compensate employees who suffered mistreatment or psychological distress while dealing with customers.