In a bold move to combat employee turnover and attract top talent, a Chinese automotive components manufacturer has unveiled an extraordinary retention strategy: gifting apartments to loyal staff. Zhejiang Guosheng Automobile Co Ltd, a producer of automotive fasteners based in Wenzhou, is making headlines for its property-based reward system designed to secure long-term commitment from its workforce.
The Apartment Incentive: A Five-Year Promise
The company's plan is straightforward yet highly valuable. Employees who complete five years of continuous service become eligible to receive a fully-fledged residential apartment. This initiative is not a future promise but an active program, with the firm having already allocated five flats to deserving employees this year. The commitment, however, extends both ways. Recipients must agree to stay with the company for an additional five years after receiving the property.
General Manager Wang Jiayuan explained the rationale behind this significant investment. He stated the primary goal is to reward capable professionals and retain the core management team, ensuring stability and growth for the business. The company, which currently employs approximately 450 people, sees this as a direct investment in its human capital.
Financial Scale and Strategic Acquisition
The scale of this employee benefit program is substantial. The owner of Zhejiang Guosheng invested over 10 million yuan (approximately ₹12.7 crore) to purchase a total of 18 residential flats. This acquisition was made strategically about two years ago, taking advantage of lower real estate prices compared to current market levels.
The apartments are all conveniently located within a five-kilometre radius of the company's office, minimizing commute times. Each unit is spacious, ranging between 100 and 150 square metres. Based on current local second-hand home prices of 7,000 to 8,500 yuan (roughly US$990 to US$1,200) per square metre, the estimated value of each apartment falls between ₹1.2 crore and ₹1.5 crore.
Ownership Transfer and Future Allocations
The process of transferring ownership is formal and conditional. Eligible employees must sign a specific housing agreement and move into the apartment once renovations are finished. The crucial milestone is the completion of the initial five-year service period. Only after this is the property's ownership formally transferred to the employee. The company does require employees to reimburse the costs incurred for renovations.
Success stories are already emerging from the program. Among this year's five recipients, two employees reportedly rose from junior positions to management roles within the company. One employee couple has been allotted a sizable 144-square-metre flat.
The distribution plan is set to continue aggressively. The company aims to allocate eight more apartments next year, with a total of 18 flats planned for distribution over a three-year period. This concrete plan underscores the company's serious commitment to using real estate as a powerful tool for talent management and long-term organizational loyalty in a competitive market.
