Tech firm gifts Rs 1.5 crore premium flats to employees, here is the reason

A Chinese automotive technology firm has introduced an unusual employee retention strategy by offering residential flats worth up to Rs 1.5 crore to long-serving staff, according to a report by the South China Morning Post.

Zhejiang Guosheng Automotive Technology has announced plans to distribute 18 residential flats to select employees over a three-year period, marking one of the more striking workplace benefit initiatives to emerge from China’s manufacturing sector. Each flat is valued between Rs 1.3 crore and Rs 1.5 crore.

The automotive components manufacturer employs more than 450 people and reported an output value of approximately $70 million in 2024. Despite its scale, the company faces a broader challenge common across China’s industrial regions—retaining experienced technical and managerial staff, many of whom migrate from other provinces and struggle with long-term housing stability near their workplaces.

The initiative was informed by internal observations of employee mobility and housing insecurity, National Business Daily reported. Company leadership assessed that long-term rentals near industrial bases are costly and unstable, while home ownership remains out of reach for many skilled workers. The housing allocation scheme aims to address this by providing long-term stability beyond salary-based incentives.

As per the report, the company distributed five flats this year and plans to allocate eight more next year, with the remaining units to be awarded within the three-year timeframe. All 18 flats have already been purchased by the company.

The residential units are located within a five-kilometre radius of the firm’s industrial base, reducing commute times and easing daily logistics for employees. Each flat measures between 100 and 150 square metres, or roughly 1,076 to 1,615 square feet. Properties of this size are considered premium in the area, where resale prices reportedly range between 7,000 and 8,500 yuan per square metre.

Ownership of the flats does not transfer immediately. Employees are required to complete five additional years of service after receiving the property before ownership is formally transferred. During this period, employees are only required to repay renovation costs and not the market value of the flat.

The company has clarified that the scheme applies only to roles requiring higher levels of technical expertise and experience, and is not available to fresh graduates or entry-level positions. The programme is aimed at securing long-term commitment from core management and specialised staff amid increasing competition for skilled labour.