According to E-commerce News, JD Group has issued a notice on the 2024 year-end bonus distribution plan. The notice shows that JD Group has launched a structural upgrade to its year-end bonus, with the aim of providing employees with more secure income.
JD Group announced in the 2024 year-end bonus distribution plan that this year is the first year to gradually move towards 20 salaries after completing the 16 salary upgrade.
The overall year-end bonus distribution time for the company is that O-series employees will receive their year-end bonus on January 26th (December 27th), while P-series employees will receive their year-end bonus on February 27th.
In order to ensure more secure income for employees, starting from this year, JD Group has upgraded its year-end bonus structure to "fixed year-end bonus+target year-end bonus". Among them, the target year-end bonus will be a fixed monthly salary multiple corresponding to the annual performance level, widening the gap, improving incentive effectiveness, enhancing internal fairness, and making the organization simpler and more transparent.
In terms of bonus amount, for departments upgraded to 17% salary this year, employees with annual performance A+will receive an annual bonus of 8 times their monthly salary, which is 20% of their annual salary; Employees with annual performance A will receive a year-end bonus of 6.5 times their monthly salary, which is 18.5 times their annual salary; Employees with an annual performance of B+will receive a year-end bonus of 5 times their monthly salary, which is 17 times their annual salary; Employees with annual performance B - will receive a year-end bonus of three times their monthly salary. The target year-end bonus for employees in other departments corresponds to the year-on-year ratio of their annual performance level.
The notice states that procurement and sales employees have officially started the year-end bonus upgrade plan in July this year. The year-end bonus for 2024 will be an average of 23 salaries, with no upper limit, while the average salary for 2026 will be 26 salaries, with no upper limit.
JD Group also announced that it will once again increase the salary and benefits of customer service, and the overall upgrade plan will be released on December 25th.
It is worth mentioning that on September 13th of this year, JD Group announced the launch of salary increases. This is the fourth round of salary increases for JD Group this year, following three consecutive rounds of salary increases in early and mid 2024. Starting from October 1st, 2024, JD Retail Group and its functional system will achieve a salary increase of 20 yuan in two years, and other departments will subsequently launch salary increase plans.
In the past three years, JD.com has announced five rounds of large-scale salary increases to the public, and there have been three rounds around the retail system. Especially regarding the salary increase for JD's procurement and sales, it is not surprising.
JD's live streaming sales went viral during last year's Double 11 shopping festival, and as of that time, the total number of viewers of JD's live streaming sales exceeded 380 million. During this year's 618 shopping festival, Liu Qiangdong, a digital person, also appeared in the live streaming room for procurement and sales. The live streaming of procurement and sales has become a new pivot for JD Live and the entire JD content e-commerce strategy, and is highly anticipated.
The internal adjustment can also be seen from the performance as having achieved phased results. According to JD's latest financial report, the company's adjusted net profit for the second quarter was 14.5 billion yuan, a year-on-year increase of 69%, and the net profit margin reached 5.0% for the first time. Combined with the strict attendance control measures implemented by JD.com in the first half of the year, the entire company is sending signals to restore its entrepreneurial spirit.
ByteDance is also a company that has released its year-end bonus scheme earlier than JD Group. This Internet giant has increased its incentive for high performing employees.
ByteDance announced through all staff email that the 2024 annual performance evaluation will be officially launched in January 2025, and the new incentive plan will also be put into use correspondingly. The new annual incentive plan aims to increase the incentive for high performing employees.
The new plan consists of cash and options/RSUs. Among them, the maximum cash bonus is 3 months' monthly salary, and high-performance employees will also receive "performance options/RSUs". If the performance options/RSUs are less than 10 shares, they will be issued in cash in a lump sum; Employees with comprehensive performance of M+or above will have their incentive month limit increased (based on which performance options/RSUs are calculated).
The total amount of performance options/RSUs is larger. Firstly, the calculation base for performance options/RSUs has increased (from monthly salary to monthly total package, i.e. monthly salary plus monthly option/RSU value); The second is to issue an additional percentage of shares (usually 10%).