Derby City Council is offering new social workers £10,000 towards a mortgage in what it claims to be the first incentive scheme of its kind in the UK.
It says the £200,000 'golden door-key' deal will save money in the long term because it will mean spending less on costly temporary staff.
Under the plan new employees will get a loan towards a mortgage after a six-month probation period, and if they stay in their job for five years it will not have to be repaid.
The council currently has 118 children's social workers which means it’s short-staffed by 25 posts, largely covered by agency staff.
The mortgage subsidy scheme would involve 20 children's social workers being offered up to £10,000 tax free towards buying a home.
A council spokesperson said: ‘We would have to raise pay very considerably for social workers to match the pay of agency workers whose salaries are governed by the market where demand outstrips supply.
‘Raising salaries has been tried by various councils across the country, and the response from agencies is to increase their prices to local authorities in order to pay their social workers more.’