Starbucks CEO Brian Niccol is ditching a merit system in favor of a uniform 2% pay raise for all salaried employees in North America this year. The move comes as the coffee chain looks to limit costs while investments are funneled into turnaround efforts. Compensation experts tell Fortune salary slowdowns are common amid economic uncertainty, but the 2% rate lags behind the national average.

Starbucks will provide a flat 2% pay bump to all salaried employees in North America this year as the coffee chain looks to minimize costs as part of CEO Brian Niccol’s turnaround efforts. READ MORE