Masterstroke to stop talent: Here the price of loyalty is ₹ 1.5 crore house, this company is making employees owners

When most companies are resorting to facilities like bonuses, ESOPs, salary hikes or work-from-home to retain talent, a Chinese automotive technology company has chosen a completely different and surprising way to retain employees. This company named Zhejiang Guosheng Automotive Technology is gifting some of its trusted and long-term employees not salaries but houses – and that too such flats, which are priced between ₹ 1.3 crore to ₹ 1.5 crore.

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Under this unique initiative, the company has announced that it will provide a total of 18 residential flats to its employees in three years. This kind of benefit for employees in China’s manufacturing sector is considered very rare.

Not a startup, but an established manufacturing company

Zhejiang Guosheng is not a small startup offering flashy features just for the sake of headlines. This company manufactures automotive components and employs more than 450 employees. According to reports, the total output value of the company in 2024 will be around $70 million (approximately ₹5,810 crore). Despite this, the company also faced a major problem like other industrial sectors in China – retaining skilled technical and management staff for long periods of time. Especially those employees who come for work from other states and who do not have permanent residence near the company.

Why did giving up the house have to be a better option?

According to the company’s general manager Wang Jiayuan, this plan was made after understanding the actual problems of the employees. He observed that many employees live in rented accommodation for years, where there is neither stability nor security for the future. On the other hand, buying a house is also out of reach for most employees due to high property prices. In Wang’s words, “Our objective is simple – to attract the best talent and retain our core management and technical staff for the long term.”

18 flats in three years, scope will increase every year

The company has decided to implement this scheme in a phased manner. This year 5 flats have been given to the employees while there are plans to give 8 flats next year. In total, 18 flats will be distributed in 3 years. All these flats are located within a radius of 5 kilometers from the company’s industrial base, making the daily commute of the employees easier and improving work-life balance.

How big is the flat and how expensive is it?

The size of the flats offered by the company is 100 to 150 square meters, i.e. approximately 1,076 to 1,615 square feet. Such big houses in this area are counted in the premium category. In the local real estate market, their price is said to be 7,000 to 8,500 yuan per square meter, according to which the total value of a flat comes to ₹ 1.3 crore to ₹ 1.5 crore.

Husband and wife got a house together

The most discussed case of this scheme is that of a husband and wife, who both work in Zhejiang Guosheng. Recognizing the joint contribution of both, the company allotted them a flat of 144 square meters (about 1,550 square feet). This example shows that the company is not just giving importance to individual performance but also stability at the family level.

Employees will not become owners immediately

However, this flat is not a complete “free gift”. Under the scheme, employees first have to sign a housing agreement and have to live in it after the renovation is completed by the company. The actual ownership is not transferred immediately, but after completing 5 years of service. During this period the employee has to pay only the cost of renovation and not the market value of the flat.

This scheme is not for every employee

The company has clarified that this facility is not for all employees. The scheme is specifically aimed at positions that require high technical skills, experience and responsibility – roles that fresh graduates cannot take up immediately. According to the company, if such employees stay with the company for a long time and perform better, they can generate savings or additional value of up to 10 lakh yuan (about ₹ 1.15 crore) annually.

‘Smart deal’ also from business point of view

Wang Jiayuan believes that this plan is not an emotional one, but a completely strategic business decision. Less employees will leave, quality of work will increase and there will be stability in management. Today, as companies around the world grapple with the “Great Resignation” and talent crisis, Zhejiang Guosheng’s move shows that sometimes the strongest retention policy is a roof over your head.