On December 19, ByteDance announced a series of measures to boost employee compensation and incentives globally via an internal email. The company aims to strengthen talent retention and attraction by ensuring its remuneration packages remain "industry-leading across all markets."

Key initiatives include: 1. A 35% increase in annual performance-based bonuses (including stock options) compared to the previous cycle. 2. A 1.5x larger budget for salary adjustments. 3. Raising the minimum and maximum salary bands for all job levels to enhance competitiveness.

ByteDance emphasized that these changes reflect its commitment to navigating new industry opportunities and challenges while motivating employees to drive business growth. Notably, this marks the first time the company has explicitly targeted "global leadership" in compensation.

**Performance Incentives:** - Employees rated "M" will see their maximum incentive months rise by 1.5 months. - "M+" ratings will gain 1.5 months at the lower end and 2.5 months at the upper end. - "E"-rated performers receive 3.5 more months at the minimum and 3 additional months at the maximum. - Semi-annual incentives for top performers ("E" and above) will now be calculated based on total monthly compensation (salary + stock options).

**Salary Structure Overhaul:** ByteDance is introducing a new 10-tier job level system (L1–L10), consolidating previous tiers (e.g., merging 1-1 and 1-2 into L1) and adding L10. This allows for larger raises without promotions and even greater increases upon advancement.

Earlier in November, reports surfaced about ByteDance piloting a "Doubao Long-Term Incentive Plan," offering virtual shares to talent in its AI model division, though the company declined to comment.

**Industry Context:** The move aligns with intensifying competition for AI talent. On December 17, TENCENT (00700) established new AI-focused departments and appointed Yao Shunyu as Chief AI Scientist. The company also plans to hire 10,000 campus interns in 2025, with 60% of roles in technology.

Similarly, Alibaba Cloud has ramped up AI recruitment, with over 80% of its 2026 internship openings targeting AI-related fields like large language models and multimodal systems.

**Market Trends:** Data from Zhaopin shows AI job postings grew 11% YoY in Q3 2025, while applicant numbers surged 23%. Year-to-date, applications outpaced openings by 39%, highlighting fierce competition for skilled professionals.