A Chinese company has introduced an innovative employee retention strategy - gifting fully renovated flats to employees who complete five years of service, the South China Morning Post (SCMP) reported. The name of the firm is Zhejiang Guosheng Automotive Technology Co. Ltd., which specialises in automotive fastener products. This intriguing move aims to attract and retain skilled personnel in Wenzhou, China.
The company has become a topic of discussion on local social media after it unveiled the plan to distribute 18 flats as an incentive, which will be gifted over three years, with five already allocated in 2025. The flats are located within 5km of the company and range from 100-150 sqm.
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As per the report, the company, which reported a total output value of 490 million yuan (US$70 million) last year, has a total of over 450 employees. The flats are valued between Rs 1.2 crore to Rs 1.5 crore, based on local market prices, with the company investing over Rs 12.7 crore in purchasing the flats.
Wang Jiayuan, who is the manager of the company, revealed the reason behind the move. As quoted by the National Business Daily, he said that he made the decision considering the significant migrant worker population in Wenzhou.
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"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 shared with the outlet. "Our goal is straightforward: to attract exceptional talent and retain our core management team."
To avail the benefits, the employees must sign a housing agreement, move in after the company does renovations. The ownership will be transferred after five years of service, with employees required to stay another five years and also repay renovation costs.
Not just the retention, the company also aims to attract 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 said as quoted.
