TikTok is increasing how much it spends on high-performing employees starting in 2026,Business Insider reports. This is based on a recent internal memo sent to its staff.
As part of its upcoming annual performance reviews, ByteDance plans to spend 50% more globally on incentives, such as bonuses and raises, that increase total take-home pay for select employees compared with the previous cycle. The additional payouts are aimed at top talent and are part of effort to retain key staff and attract new hires, the memo stated.
The compensation changes will apply across most departments, however, not all employees will benefit. The extra spending is reserved for workers who exceed certain performance scores during reviews.
Higher pay to meet talent pressures
ByteDance told employees that the pay increases are designed to respond to a moment when the tech industry is facing new challenges and opportunities, making it especially important to attract and retain talent.
Pay packages for in-demand tech workers, particularly in areas like AI, have surged this year. Companies such as Meta have gone on hiring sprees that included nine-figure signing bonuses. Amazon has adjusted its pay bands to reward its “Top Tier” workers, Meta and Google have also made changes to more clearly separate high and low performers.
Performance reviews play a central role
Performance reviews continue to be a major focus at TikTok. The company pushes managers to avoid placing employees at the mid-point of ratings, even if their instinct is “to avoid conflict,” Business Insider previously reported. Last year, TikTok changed its review process to issue more low scores as part of an effort to more clearly distinguish high performers from weaker ones.
Under ByteDance’s revised incentive plans for 2026, the company said it will invest 35% more in bonuses for employees who receive an “M” for consistently meets expectations or better in annual reviews. An “M” score sits in the middle of the company’s performance scale, while those rated “E,” for exceeds expectations, stand to receive even larger payouts.
A larger share of bonuses will be paid in cash rather than stock options next year, the memo said. This shift may appeal to employees who are uncertain about the liquidity of their equity, particularly after the company announced plans to spin off part of TikTok’s US business into a joint venture, one current staffer told Business Insider. For employees who receive equity as part of their compensation, ByteDance is also shortening the vesting period from four years to three.
Job levels and higher standards
Alongside the compensation changes, ByteDance said it plans to reorganize roles into 10 different job levels and introduce higher performance standards across the company. The revised incentive policies arrive during a period of transition for TikTok and ByteDance. US employees learned this week that part of TikTok’s business is being spun off into a joint venture involving new investors such as Oracle, Silver Lake, and MGX.
The deal, which TikTok expects to close in January, will still leave certain core operations, including e-commerce, advertising, and marketing, under ByteDance’s management, according to a memo from TikTok CEO Shou Chew viewed by Business Insider.
Return-to-Office mandates expand
Other than the payout upgrade, another change the many TikTok employees might soon witness is that the provision for remote work may soon end.
As reported by Business Insider, US staffers across several large divisions have been told they will need to return to the office five days a week starting next year. The policy, expected to begin in September, will impact workers in advertising sales, marketing, and product roles.
Return-to-office rules vary by team. TikTok Shop, the company’s e-commerce division, already has a five-day office requirement, which previously included tracking how many hours employees were physically present.
