Not a salary bump or a share award? A Chinese company is offering renovated flats to employees who stay with it for a minimum of five years.

Zhejiang Guosheng Automotive Technology Co. Ltd. a Wenzhou-based enterprise in Zhejiang province that makes auto fasteners has pledged to award 18 residential flats as part of its retention and recruitment drive for long-term employees. The firm has a headcount of over 450.

As part of the plan a worker should enter into a housing contract with the firm move into the flat after the decoration and stay at the company for five years before the ownership is transferred to the employee in his/her name. The recipient will only be required to pay back the decoration cost but not the home’s market value.

A Bonus arising from real needs

According to Wang Jiayuan the general manager of Zhejiang Guosheng this new reward comes in light of the company’s understanding of the regional labor market particularly the large number of migrant workers in the area who usually lack a stable and nearby place to live when they work around factories or industrial parks. “We hope to attract the best talent and retain the main body of management team” Wang stated.

The awarded flats are within 5 kilometers of the firm’s campus and therefore not only can be employees’ homes but also provide a more convenient life for them with shorter and less stressful commuting. Also the houses are worth a considerable sum with an area between about 100 and 150 square meters.

As of now the firm has already awarded five flats to some workers this year including a unit that has been jointly awarded to a couple where both work in Zhejiang Guosheng and have moved up from general staff to management positions. It is expected that eight will be awarded in 2023 and the remaining five in 2024 thus all 18 flats will be distributed within three years.

Securing workforce stability for business expansion

The move has generated buzz among Chinese social media users who are contrasting it with say the year-end bonus or equity options. For Zhejiang Guosheng the move is expected to help the company build up a stable workforce of skilled and experienced technicians and staff at a time when the market is getting competitive in hiring. One of the social media users suggested that this is a positive sign and hope to see more such measures to directly benefit the staff in more companies.

Industry experts speculate that this is also part of an emerging trend where firms are trying to lower their turnover and directly invest in the employees. Let’s wait and see whether others will follow in their footsteps but for those lucky workers who have just got their own homes it is indeed a big and game-changing gift.