At a time when most companies are trying to retain talent through bonuses, ESOPs or flexible work policies, a Chinese automotive technology firm has taken a very different path. Zhejiang Guosheng Automotive Technology has decided that for some of its most loyal employees, long-term loyalty should be rewarded with something more permanent, a home of their own.

The company has announced that it will distribute 18 residential flats to long-serving employees over a period of three years. Each of these homes is valued between Rs 1.3 crore and Rs 1.5 crore, making it one of the most significant employee benefit initiatives to emerge from China’s manufacturing sector in recent years. The move was first reported by the South China Morning Post.

Zhejiang Guosheng Automotive Technology is no small startup experimenting with flashy features. The automotive component maker employs more than 450 people and reportedly recorded an output value of about $70 million in 2024. Despite its size, the company faces the challenge of retaining skilled technical and managerial staff in China’s industrial centers, many of whom are migrant workers with no permanent residence near their workplace.

According to Wang Jiayuan, the company’s general manager, the housing program was designed after taking a close look at the realities faced by employees who move to the provinces for work. For many, long-term renting near an industrial base is expensive and uncertain, while purchasing property is often out of reach. The flat-allocation plan aims to address this gap by providing stability beyond the monthly pay cheque.

“This year, we have distributed five flats. Next year, we plan to allocate eight more flats, bringing the total to 18 flats in three years,” Wang told National Business Daily. “Our goal is simple: to attract exceptional talent and retain our core management team.”

All the flats are located within a five-kilometre radius of the company’s industrial base, reducing daily commute time and simplifying work-life logistics for employees. Each unit measures between 100 and 150 square metres, which is roughly 1,076 to 1,615 square feet. Homes of this size are considered a premium in the area, where resale prices reportedly range between 7,000 and 8,500 yuan per square metre.

One of the more high-profile cases involves a married couple who both work in Zhejiang Guosheng. They were jointly provided with a 144-square-metre apartment, marking a rare example of a company recognizing family-level contributions rather than individual performance. Under the scheme, selected employees will first have to sign an accommodation agreement and move in after the company completes the necessary renovations.

However, ownership is not transferred immediately. After receiving the flat, employees have to complete five years of service, after which the house is officially transferred to them. The only cost they have to repay is the renovation expense, not the market value of the property.

Wang also revealed that the company has already purchased all 18 flats it plans to deliver. Two of this year’s five recipients were employees who began their careers in entry-level roles at the company and later moved into management positions, showing that the company wants to encourage long-term growth paths.

Importantly, not all roles are eligible for this benefit. The company has clarified that the scheme is aimed at positions requiring high technical expertise and experience, roles that cannot be immediately filled or mastered by fresh graduates. From a company’s perspective, investing in housing makes business sense if it leads to better efficiency, lower turnover and improved operational quality.

“If these employees work diligently, it is not out of the question to help the company save one million yuan annually,” Wang said, suggesting that the housing initiative could pay for itself through higher productivity and less erosion.