Starbucks CEO Howard Schultz announced a series of enhanced employee incentives, including increased pay and a more relaxed dress code, in a letter sent to partners Monday.

According to the letter, Starbucks will increase the base pay for all partners and store managers at company-operated U.S. locations by more than 5 percent, with the amount determined by geography and other market factors. In addition, Starbucks is adding another annual enhancement to its Bean Stock program, wherein the company will double the annual bean stock award (company stock) for employees who reach two years of continuous service.

The enhanced incentives will result in total compensation increases between 5 and 15 percent, Schultz writes in his letter. The changes will go into effect in October.

“Over the years, we have viewed our total compensation approach as the best way to create long-term opportunity for partners,” he writes. “We believe strongly in this philosophy but also recognize we must do more to help partners take advantage of all the company has to offer.”

In addition to the compensation increases, Starbucks is evolving its benefits program and online benefits platform to give employees more control over their benefits packages. The company is also tweaking its scheduling practices and dress code. With the latter, Starbucks will allow employees more personalization opportunities and provide “more room for self-expression.” Final dress-code changes will be announced at the company’s Partner Open Forum later this month.

“Starbucks has long been a third place for our customers, but it must also be the right place for you, our partners,” Schultz writes in his letter. “I truly hope that the coming changes—significant pay and Bean Stock enhancements; the added choice and potential savings in our healthcare plans; our ongoing commitment to scheduling that works for you; and our evolving dress code—will deepen the reservoir of trust between us.”

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