TikTok is revamping its pay structure to reward high performers

• TikTok and its owner plan to raise bonus payments and other incentives in 2026.
• The increases are meant to draw in new hires and retain top performers, according to a memo.
• Some bonus increases are reserved for workers who score above a certain threshold in performance reviews.

TikTok is increasing how much it spends on high-performing staffers in 2026, according to a memo from owner ByteDance sent last week and viewed by Business Insider.

In ByteDance's upcoming annual performance reviews, the company aims to spend 50% more globally on incentives like bonuses or raises that increase the total take-home pay for some staff compared to the previous cycle, the memo said. The payouts are reserved for top talent at the company as part of a push to keep them happy and also attract new hires, per the memo.

The compensation adjustments will be applied across most departments, but not all employees will benefit, as the extra spending is for workers who exceed certain scores in reviews, the memo said.

ByteDance informed its staff that the pay increases were designed to meet a moment when the tech industry is facing a slew of new challenges and opportunities, making it crucial to attract and retain talent.

Pay offers for high-demand tech workers in hot areas like AI have reached astronomical heights this year as companies like Meta have gone on hiring sprees that included nine-figure signing bonuses. Amazon tweaked its pay bands earlier this year to reward its "Top Tier" workers, and other tech companies, including Meta and Google, have made adjustments to better separate high and low performers.

Performance reviews are a big focus at TikTok, and the company pushes managers to avoid grading staff at the mid-point, even if their instinct is "to avoid conflict," Business Insider previously reported. Last year, TikTok adjusted its performance review process to give out more low scores as part of a push to differentiate high performers from weak ones.

As part of ByteDance's incentive adjustments for 2026, the company said in the memo that it would invest 35% more in bonuses for employees who score an "M" — for consistently meets expectations — or better in their annual performance reviews. An "M" score sits in the middle of the company's performance rubric, and workers who get a higher score of "E," for exceeds expectations, stand to get bigger bonus payouts.

A larger portion of bonuses will arrive in the form of cash rather than stock options next year, the memo said. That shift may appeal to staffers who are unsure of the potential liquidity of their equity after the company announced plans to spin off part of TikTok's US business into a joint venture next year, one current staffer said.

For employees who get equity as part of their compensation, the company said in its memo that it's shortening the vesting period from four years to three.

Alongside the payment changes, ByteDance said in the memo that it plans to shift how it structures jobs at the company into 10 different levels. It also said it would have higher standards of performance.

The new incentive policies arrive at a moment of flux for TikTok and ByteDance. TikTok's US employees learned on Thursday that part of their company is being spun off in a joint venture that includes new investors like Oracle, Silver Lake, and MGX.

As part of the deal, which TikTok expects to close in January, certain key aspects of the business, including e-commerce, advertising, and marketing, will continue to be managed by ByteDance, according to a memo from TikTok CEO Shou Chew viewed by Business Insider.

Offering current US staffers the opportunity to receive bigger bonuses next year may help the company retain talent as it goes through a period of transition.

TikTok and ByteDance did not respond to a requests for comment.