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3 Things that Make Up the Best Truck Driving Jobs

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Best truck driving jobs
You have two job offers on the table. Which is one of the best truck driving jobs?

Job 1: ABC Trucking

ABC Trucking is hiring OTR drivers out of Wichita, KS. Drivers get 3 flex days off every 15 days and earn $0.45 CPM. Drivers average 2,500 miles per week. ABC Trucking offers full benefits that start immediately and a $1,500 retention bonus for drivers who stay at least 1 year. 

Job 2: Jack’s Trucking

Jack’s Trucking is hiring OTR drivers out of Wichita, KS. Drivers are home for 2 days every 2 weeks. Drivers earn $0.53 CPM and average 2,000 miles per week. Jack’s Trucking offers benefits starting after 90 days and they provide a $1000 sign-on bonus.

Which job would you take?

ABC Trucking offers a lower CPM, but more miles. In a year, a driver with ABC Trucking would earn $56,250 and benefits start immediately! On the other hand, Jack’s Trucking offers higher CPM, but fewer miles and benefits starting after 90 days. Typical annual pay would come to $53,000. Even beyond base pay, if you stay with your company for at least a year, ABC Trucking offers the higher bonus. Similarly, even though 3 flex days for every 15 on the road isn’t the most common format, 3 days off out of 15 is a better offer than 2 days off out of every 14. ABC Trucking offers higher total compensation.

The best truck driving jobs have a strong total compensation package. That includes direct and indirect forms of compensation. If you turn down a job because the CPM is a few cents lower than your expectations, you might be leaving money on the table! Consider the total compensation package before accepting a job offer. 

1. Direct Compensation

When you think of pay, many people are really talking about direct compensation. Direct compensation includes the pay that comes as dollars and cents. That said, it’s more than just your CPM or salary. Direct compensation also includes the money you earn from bonuses and savings programs. 

Base Pay

direct compensation

Base pay is the money you see in your paycheck. There are many different ways to get paid (CPM, salary, per load), but these base numbers don’t tell the whole story when it comes to compensation. Base pay also includes per diem if your company offers it. Even within base pay, it’s important to consider the bigger picture. If you’re paid in CPM, find out how many miles drivers average. Is there a minimum number of guaranteed miles? A high CPM rate does no good if you can’t get enough miles to pay the bills. 

Base pay makes up a large part of a total compensation package, but there are several other types of direct and indirect compensation to consider. 

Bonuses

Another common form of direct compensation is bonuses. Bonuses aren’t guaranteed money, but you’re likely to earn many in your time as a driver. Some of the most frequent bonuses offered are for recruitment, retention, referrals, performance, and safety. Some of the bonuses come upfront with no strings attached and others are dispersed over a period of time. In both cases, these bonuses make up a part of a total compensation package. 

Savings Programs

Savings programs are the third form of direct compensation.  For example, a 401k match from your company is a huge investment in your future! Even if you only put away a little money each year, your company will add to your savings. Not all companies offer 401k match programs, but any savings program will set you up for better finances down the road. 

2. Indirect Compensation

If you are reading CPMs and then deciding the pay is too low, you might be missing out! Base pay is important, but the highest base pay is not always the best job. Look for a job that gets you the pay you need AND compensates you in your time, benefits, and equipment. 

Home Time

indirect compensation

When you evaluate home time in a new job, there are three things to consider. The company is paying for your time, so this is part of your total compensation package. First, look at weekly home time. This will vary based on your run, but compared to similar positions, how do they stack up? Is the schedule consistent? Next, look at vacation time. If a company offers slightly lower CPM, but good, paid vacation, that could be a good offer. If you get paid vacation, that’s money you earn without rolling a single tire on the road. Finally, look at sick days.

Stay in the business long enough, and everyone will need to take a few sick days. Does your company offer paid sick days or do you have to take it out of other time off? These are all parts of your compensation that won’t show up if you only look at base pay.

Healthcare Benefits

Healthcare in the U.S. is expensive. The more your employer covers, the less your wallet takes a hit when you need medical care. Factor in whether your employer starts benefits right away or after a trial period. Similarly, does your employer offer any health and wellness benefits? Free gym memberships and smoking cessation programs are big health benefits that you won’t pay a dime for. 

If you think benefits aren’t much money compared to base salary, think again. On average, benefits cost the same as 31% of an employee’s salary. To put it in perspective, a driver who is paid a $50,000 base salary essentially earns $65,000 when benefits are included. For an $80,000 salary, the total compensation number jumps to $104,800. As a driver, you don’t see that money in your paycheck, but it would be a huge out-of-pocket cost if you were responsible for it. Medical benefits are a big part of total compensation.

Equipment

The equipment you drive is also a consideration for total compensation. Newer and well-maintained equipment keeps you moving and makes sure you get the miles you need. In any recruitment conversation, ask about the make, model, and year of the truck you would be driving. It’s also a good idea to ask about an EZ Pass and fuel card. Even cab perks such as radio and ride-along programs have value. None of these perks make up for terrible base pay, but they are worth considering as a part of total compensation. After you talk to a recruiter, make sure to do your own research too. Check the CSA scores of carriers to see how they prioritize safety and equipment maintenance, and make sure they measure up.

3. Company Culture

happy coworkersWhy are the most important things in life so hard to put a number on? There are no numbers to talk about the value of your family or pride in a job well done. Company culture is like that. Company culture isn’t part of total compensation, but the best truck driving jobs all have a good company culture. Drivers are respected and value for the critical work they do. That shows up in everything from pay to home time to how drivers and dispatchers interact. Find a company that respects your work and time, and you’ll find a job worth keeping. 

In her DriverReach interview, NTI’s Leah Shaver said it best:

“If you ask a professional driver, they will tell you pay is not the most important factor, respect is. Ask them to define how they could be shown more respect and they’ll list a number of variables related to their paycheck. Compensation is arm-in-arm with the most important factors at any job. It is the ‘handshake agreement’ that often leads a driver to accept a new position and encourages them to remain in with the company. If the pay, benefits, and company culture is there to support and engage the driver, they will stay focused and retained at their employer.”

When you look for your next CDL job, focus on total compensation and strong company culture. The best truck driving jobs have both. Those are the jobs that are worth your time.

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11 Types of Truck Driver Pay Explained

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truck driver pay

Truck driver pay is one of the key elements that CDL drivers look for in a new job. Some of the most important factors for earning potential are years of experience, location, the number of miles driven, special qualifications such as endorsements, type of haul, and haul range. Not all jobs are equally compensated, but you should be able to know what to expect from your paycheck. Make sure you get all the details from your recruiter. Whether it’s for a new job or to get started in trucking, here are the types of compensation you may get offered. 

Base Pay

For company drivers, there are four main types of base pay. Some drivers may receive additional compensation in the form of bonuses or specialty pay. That said, the bulk of your income will come from one of these types of base pay.

1. Hourly

Hourly pay is likely familiar to many drivers because it’s common in many industries. In trucking, pay per hour is frequently used by intrastate delivery companies with relatively small driving ranges. Drivers who are paid hourly can often expect work with frequent stops, loading and unloading, and regular customer interaction. Many hourly positions offer overtime hours which can add a big bonus to your paycheck if you’re willing to take on extra hours.

2. Pay Per Mile

This is one of the most common types of pay across the trucking industry. Pay per mile, often called CPM (cents per mile), pays drivers for the miles they run. Within mileage pay, there are several ways to calculate truck driver pay.

  • Practical Mileage. This is the number of miles based on the most efficient path between the address at your starting location and the address at your destination. It’s often calculated with an ELD. Think of it as similar to how Google or Apple Maps calculate a driving route. 
  • Household Goods (HHG) miles. HHG miles are also called zip code miles. Companies calculate routes based on the shortest distance between the post office zip code in the origin city and the post office zip code in the destination city. 
  • Hub Mileage, also called Actual Miles. This type of truck driver pay uses the mileage change on the odometer. It accounts for all hours of service miles including changes in routes or stops. 
  • Sliding Scales Pay. Often this type of pay is used by companies who want to give short-haul drivers a chance to earn a higher income. For example, short hauls (1-500 miles) may pay $0.55 CPM while routes of 500+ miles might earn $0.50 CPM.

In addition to CPM, a job description that pays based on miles should include the number of miles per week that drivers can expect. For example, a job description might offer $0.53 CPM and an average of 2500 weekly miles. A higher CPM is usually good news, but it’s important to read the fine print. Your total pay depends on the number of miles traveled, so look for jobs with a high CPM and enough miles to earn the paycheck you want.

3. Salary

Salaried trucking jobs offer income consistency. For drivers who receive a salary, income is not dependent on the specific miles or hours worked. Instead, a flat rate is set at the start of the job contract and drivers will consistently earn that amount. Often, salaried drivers receive pay weekly.

4. Pay Per Load

Pay Per Load is the least common type of base pay. Most jobs that offer pay per load are in the agriculture, oil and gas industries, or are local delivery jobs.

Drivers earn a flat rate of pay for each load they deliver. In this type of pay, drivers earn more when they deliver more loads regardless of hours or miles.

Additional Truck Driver Pay

Per Diem

In a nutshell, per diem is money given for any place you stay overnight, meals, and other incidental expenses. Per diem is a form of reimbursement, but the biggest benefits come during tax season. Companies may offer per diems by day, per mile, or even as a percentage. If you are a company driver, per diem wages are not considered taxable income. 

For example, if you are paid $0.60 CPM and $0.45CPM is your base income and $0.15CPM is per diem, 25% of your income is not taxable. 

As of 2018, even though company drivers can no longer claim $63 per day as an expense on their taxes, they can claim the standard deduction. A higher per diem wage doesn’t change your annual income, but it does mean that you will pay less in taxes. Owner operators are still able to use per diem and deduct it as an expense on their taxes.

Detention and Layover Pay

When drivers are stopped for long periods of time, some companies will offer compensation. Drivers get detention pay when they are held up at a shipper or receiver for an extended amount of time. Layover pay may be given to drivers who have to wait between loads. Detention and layover pay are particularly important for drivers who are paid by the mile. In addition, some companies offer breakdown pay when incidents happen on the road and drivers cannot log miles.

Stop Pay

Stop pay is typically offered to drivers who will make multiple stops on their run. In general, stop pay does not include the initial or final destination. Like detention and layover pay, stop pay compensates for the time that drivers are not adding miles to their logbooks. More deliveries mean more time stopped and fewer miles. Stop pay helps make up the difference. 

Special Incentive Pay

Drivers can earn special incentive pay for loads that are more difficult because of location, border crossings, hazardous materials, or other non-typical duties. For example, tarp pay is not uncommon for flatbed drivers. Truck drivers who haul refrigerated loads may get a higher cent per mile rate. Similarly, there may be additional compensation for over-dimensional loads or routes in NY and NJ. Endorsements such as HazMat, Tanker, Doubles/Triples, or TWIC cards also frequently help drivers earn higher pay or bonuses.  

Bonuses

While base pay makes up the majority of a driver’s income, many people receive additional pay through bonuses. All companies choose their bonus structures a little differently. Some of the most common bonuses are for fuel, safety, and inspections. Many companies also offer hiring bonuses for signing on to their job or referral bonuses for bringing in new drivers. Performance and on-time delivery bonuses are also frequently used to incentivize drivers. 

Team Driver Pay

Like solo company drivers, team drivers most commonly receive pay based on mileage. For teams, the per-mile rate is a bit higher than for a solo driver, but team drivers share the rate.

The rate for each driver may be lower than for a solo company driver, but each person’s annual income is often higher because teams can drive significantly more miles.

Typically, team drivers split the mileage pay evenly. In some situations, each driver has a different per-mile rate. This may be based on experience or other similar factors. Team drivers may also qualify for bonuses if they reach certain mileage targets. 

Owner Operator Pay

Percentage pay is one of the most common types of income for owner operators. Typically, owner operators negotiate a percentage of the linehaul (gross revenue of the load minus the fuel surcharge). A load with a higher gross revenue means a better payout for the driver. Both independent owner-operators and lease to own operators can also expect to be paid all or almost all of the fuel surcharge. 

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Trucker Pay Increase on the Horizon

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“With freight demand climbing and rates on the move, trucker pay should rise in the coming months”, says Gordon Klemp, a driver pay analyst and president of the National Transportation Institute. Klemp shared his prediction in a conference call with investors in early November.  Stifel, an investment firm, hosted the call and distributed a recap of Klemp’s remarks.

If carriers secure rate increases in contracts with shippers, they pass some gains on to drivers, Klemp told investors.

He didn’t forecast any percentage-based increases in driver pay. Instead, he noted that driver pay increases with freight rates. Not all of the gains in per-mile rates will translate to drivers’ paychecks, but “driver pay is moving up alongside the freight increases,” notes the conference call recap distributed by Stifel.

Though carriers consistently increased driver pay in recent years, driver wages climbed only 6.3 percent on average over the last decade. “For-hire drivers lost effective purchasing power over the past 10 years and adjusted lifestyles accordingly,” says Stifel’s report.  Looking even farther back, driver wages are in effect just half of what they were in 1979, before deregulation, said Klemp.

Klemp also noted that carriers face an uphill battle in recruiting younger drivers to the industry.

These drivers “disinclined to enter” trucking, “as they are often concerned with work-life balance”.  Nearly 60 percent of the current driver workforce is older than 45. That’s a good bit higher than 1994, Klemp noted, when just 45 percent of drivers were 45 years or older.  “However, with freight demand strengthening and the driver shortage becoming acute, the stage is set for drivers to realize driver pay increases over the foreseeable future,” says Stifel’s report.

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