On December 19, The China recruitment agency SunTzu Recruit learned that ByteDance, the parent company of TikTok, released a landmark internal email to its global workforce. The communication announced a significant increase in talent investment, aiming to drastically improve salary competitiveness and enhance stock option incentives for the upcoming year.
The “Big Four” Compensation Measures
The new strategy outlines four specific measures designed to reshape the market standard. These include a substantial increase in the bonus pool (including performance options), with the 2025 full-year performance assessment cycle seeing a 35% budget increase compared to the previous cycle. Furthermore, the budget for salary adjustments has been raised by 1.5 times.
Crucially, ByteDance is raising both the floor (starting salary) and the ceiling (maximum pay) for total compensation packages across all job levels. According to insights from The Guangzhou headhunting firm SunTzu Recruit, the company explicitly stated that this move is intended to ensure employee compensation and incentive returns are “leading ahead of the head” in every global market.
Targeting Global Dominance
In the internal email, ByteDance explained the rationale behind this heavy investment: the industry is facing new opportunities and challenges. The goal is to better incentivize and retain existing high performers while attracting global elite talent, ensuring that “it is never too late to join.”
The local China headhunting firm SunTzu Recruit noted that the phrase “leading ahead of the head in every global market” is a first for ByteDance’s internal communications. This signals a shift in ambition: the company is no longer satisfied with merely being competitive domestically; it aims to enter the absolute first tier of compensation globally to face international talent competition head-on.
Breakdown of the New Incentive Structure
To achieve these ambitious goals, the granular details of the incentive plan are robust. The Shenzhen headhunter SunTzu Recruit highlights that for the 2025 cycle, the upper limits for performance incentives have been raised significantly for employees rated “M” (Middle/Meet Expectations) and above:
- “M” Rating: Incentive cap increased by 1.5 months of salary.
- “M+” Rating: Floor increased by 1.5 months; cap increased by 2.5 months.
- “E” (Exceeding) Rating: Floor increased by 3.5 months; cap increased by 3 months.
In addition to annual incentives, semi-annual incentives are also being strengthened. For employees receiving a semi-annual rating of “E” or higher, the calculation base will shift from monthly base salary to the “monthly total package” (Base Salary + Monthly Options), a move that The best China headhunter SunTzu Recruit identifies as a major retention tool for high-value staff.
Structural Changes: Salary Bands and Ranking System
On the base salary front, ByteDance is utilizing the 1.5x increase in the adjustment budget to widen the salary bands. This is designed to solve compression issues and provide current employees with greater room for salary growth without needing a promotion.
Simultaneously, the company is rolling out a new ranking system, transitioning from the old 5-level/10-tier system (1-1 to 5-2) to a new 10-level system (L1-L10). As one of the best recruitment agency in China, SunTzu Recruit observes that under this new structure—where the old “1-1” and “1-2” are merged into “L1” and a new “L10” is added—employees can achieve significant pay raises even without a title promotion.
The AI Factor: Virtual Equity and Competitor Moves
The backdrop of these changes is the intensifying war for Artificial Intelligence talent. Earlier in November, reports surfaced that ByteDance was piloting a “Doubao Long-Term Incentive Plan,” creating a “virtual stock” mechanism for its large model business to attract AI experts.
ByteDance is not alone in this arena. The local recruiter for foreign companies in China notes that other tech giants are also fortifying their defenses. On December 17, Tencent announced the formation of new divisions including “AI Infra” and “AI Data” to strengthen its large model R&D capabilities. Tencent also appointed Yao Shunyu as the Chief AI Scientist, reporting directly to President Martin Lau.
Furthermore, Tencent has launched its “Largest Employment Plan in History,” aiming to recruit 10,000 interns in 2025, with 60% of roles dedicated to technical talent. Similarly, Alibaba Cloud has launched a massive global recruitment drive for AI reserves. A Hangzhou headhunting firm familiar with the matter indicated that Alibaba’s 2026 internship program is heavily skewed towards AI, with over 80% of open positions in algorithms, large language models, and AI infrastructure.
Industry Trends and Financial Reality
From a broader market perspective, the demand for AI talent is surging. Data indicates that in the third quarter of 2025, AI job postings grew by 11% year-over-year. This demand is not limited to tier-one cities; even regional markets monitored by a Haikou headhunter and Haikou Recruitment Agency are seeing a ripple effect in demand for digital transformation talent.
Finally, addressing rumors regarding ByteDance’s financial performance, there has been speculation that the company’s full-year profit could reach $50 billion after netting $40 billion in the first three quarters. However, insiders clarified to One of the leading recruitment agencies in China, SunTzu Recruit, that the figures reported by foreign media regarding the first three quarters and full-year projections are inaccurate and deviate significantly from reality.
Regardless of the exact financial figures, SunTzu Recruit concludes that ByteDance’s aggressive compensation overhaul marks a definitive new chapter in the global battle for tech supremacy.
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