TikTok and its parent company, ByteDance, plan to significantly boost bonuses and incentives in 2026 as part of a broader effort to attract new talent and retain top performers.
According to an internal memo seen by Business Insider, ByteDance intends to spend about 50% more globally on performance-based compensation than in the previous review cycle. The extra spending will largely benefit employees who score above certain thresholds in annual performance reviews, meaning not everyone will see a raise.
The company said the changes reflect the increasingly competitive tech landscape and the need to hold on to high-performing staff. Bonus pools will be more heavily weighted toward top-rated employees, with those meeting or exceeding expectations eligible for larger payouts.
Next year, a greater share of bonuses will be paid in cash rather than stock, and equity vesting periods will be shortened from four years to three.
ByteDance also plans to introduce a new 10-level job structure and raise performance standards overall. The incentive overhaul comes as TikTok goes through a period of transition, including plans to spin off part of its US business into a new joint venture, making retention of key employees a priority.