• Welfare package. This is seen as necessary but is not believed to motivate.

The provision of housing in state companies causes problems when foreign companies do not provide housing. By moving to a foreign company employees lose their house. There is therefore pressure on foreign companies to provide housing or an associated benefit. Company provision of local housing also may cut down on commuting time, which may benefit productivity.

Some companies provide housing loans. As Chinese workers give up benefits when they move to a foreign company, this has implications for recruitment.