Internet big names woo talent with more bonus

Year-end bonuses and welfare programs unveiled by leading internet companies have gained widespread attention, with some employees receiving up to eight additional monthly salaries for the year based on their performance.

Experts said this is a significant measure by enterprises to retain and attract high-caliber talent and enhance competitiveness.

They emphasized that these initiatives will not only further stimulate employees' enthusiasm and improve their loyalty and sense of belonging, but also help companies gain an upper hand in the highly competitive internet sector.

The move comes at a time when pay increases have become increasingly rare for workers as major tech players are striving to reduce costs and improve operational efficiency in the face of downward economic pressure and mounting external uncertainties.

Chinese e-commerce giant JD recently announced its 2024 year-end bonus plan. Employees with an "A+" performance rating could receive a bonus of eight additional monthly salaries, which is equivalent to 20 months' pay for the entire year instead of the usual 12, while staff members with "A and B+" performance ratings will get 18.5 and 17 months' salaries, respectively, the company said.

Employees in sales and procurement roles will earn 23 months' salary on average, and more than 20,000 frontline customer service staff will see two more months of extra salaries this year.

Meanwhile, JD has upgraded its welfare policies including medical insurance, physical exams and housing subsidies for its employees.

This is not the first time that JD has increased salaries for its employees. The company said in February that it would raise the annual salary for customer service personnel by an average of 30 percent. Industry insiders said the salary hike can be partly attributable to the company's robust business growth.

The Beijing-based internet company reported its revenues reached 260.4 billion yuan ($35.7 billion) in the first three quarters of the year, an increase of 5.1 percent year-on-year, while net profits stood at 11.7 billion yuan, up 47.8 percent on a yearly basis.

ByteDance, the owner of popular short-video apps TikTok and Douyin, has made adjustments to its salary and incentive policies, raising annual bonuses for high-performing employees. Its employees will receive bonuses based on their performance review, with those rated "M" or higher getting extra payments.

The company said in an internal email to employees that the new incentive plan consists of cash and stock options. The cash bonus is worth three months of additional salaries, while high-performing employees will receive share options.

"A series of year-end bonus and salary incentives by major internet companies have demonstrated these firms attach great importance to and care for their employees. These initiatives are crucial for companies to maintain the stability of employees, motivate their work enthusiasm and creativity, and improve team cohesion," said Jiang Han, a senior analyst at market consultancy Pangoal.

Jiang said other companies are likely to follow suit given that salary increases will be conducive to enhancing employee job satisfaction and happiness, thus helping elevate their work efficiency and innovation capacities. "In the long run, these measures will have a positive impact on the internet sector."

Moreover, Tencent Holdings has announced the extension of the Spring Festival holiday to 10 days. Online travel agency Ctrip said its customer service personnel can return home one month in advance for the upcoming Spring Festival break and work from home for about two months.

Zhu Keli, founding director of the China Institute of New Economy, said the significant increase in year-end bonuses and updated welfare plans highlight companies' recognition and affirmation of employees' value. "Employees are the most valuable resources for enterprises. Only by fully invigorating the potential of employees can enterprises remain invincible amid fierce market competition."

Noting that the talent turnover frequency is relatively high in the internet sector, Zhu added that the move will improve the overall compensation and salary level of the emerging industry, enhance enterprises' competitiveness in the talent market and attract more high-quality people to join in, injecting new vitality into the sustainable development of the internet sector.