How Much Does A Fleet Manager Make Annually? 

Introduction 

How much does a fleet manager make annually? If you work in the field of fleet management and are looking to advance further in your career, or if you are considering a move from another field, you may find this article’s perspective helpful.

Cardata is building your one-stop shop for all things fleet. In this article, we’ll break down common questions about fleet manager jobs, what fleet managers do, what qualifications they must possess, and finally, examine the most common salary and compensation bands available from publicly posted job descriptions.

What Is A Fleet Manager?

According to ZipRecruiter, a popular job-seeking and employment counseling website, a fleet manager is someone “in charge of maximizing efficiency and profitability by managing the vehicles used by [a] company [as well as] the drivers who operate them.” [1]

This broad definition encompasses the variety of companies and the vehicles they own. Each fleet manager position will have different responsibilities depending on the nature of the industry and the company’s size.

On any given day, a fleet manager might be responsible for the following tasks:

• Research vehicles for purchase or lease; renew lease agreements; place large-volume purchase orders for new vehicles
• Manage warranties for parts and vehicles; authorize repair orders with manufacturers
  Employ a team of fleet technicians to handle minor mechanical and electrical problems; order repairs in-house when possible; keep track of repair orders and ensure their prompt resolution
• Keep an eye on mileage and safety logs for each driver; document reports of safety incidents;
• Manage a team of drivers; navigate interpersonal conflicts; listen to driver concerns; ensure health and safety training and operator licensing as required
• Procure fuel and parts at the most economical price
• Use fleet management software and understand fleet telematics; use data to optimize route and fuel efficiency
• Decommission vehicles that no longer meet quality or safety standards; arrange for the sale of old or decommissioned vehicles 

Average Fleet Manager Salaries

Because fleet management requires technical, logistical, organizational, and management skills, the average salary for a fleet manager tends to be high, as candidates must put in years of work to obtain the required skill set.

ZipRecruiter estimates that the median fleet manager salary is $70,066 in the United States, stating that midlevel fleet manager salaries are around “$85,000 (75th percentile) with top earners (90th percentile) making $102,000 annually across the United States.¹

Glassdoor offers a higher estimate, claiming that the “total pay for a Fleet Manager is $80,265 per year in the United States.” [2]

A cursory view of public job postings on Indeed lists salaries for available jobs as between $80,000 and $120,000 per year. Some positions managing fleets for smaller companies list salary estimates as around $60,000 per year. Still, these are outliers and more suitable for fleet managers starting their career path or fleet technicians looking to move into fleet management.

These figures do not include bonus pay, overtime, or any other form of extra compensation. We’ll go into that below, but first, we’ll examine the main factors that influence fleet management salaries. 

Main Factors Influencing Fleet Manager Salaries

There are three main factors influencing fleet manager salaries.

1. Size of fleet/size of team managed. The larger the fleet, the larger the paycheck. Similarly, if there are more drivers and technicians to manage, more experience is required, so salaries for these senior-level positions will be higher.

2. Geographical region. Regional differences account for variations in prices across all sectors. As a universal rule, large urban areas tend to have higher costs of living and higher salaries to compensate. Fleet manager salaries will be much higher in urban conglomerates like the Dallas-Fort Worth area, Los Angeles, or the Durham Research Triangle. Fleet manager jobs in less-populated states such as Wisconsin and North Dakota may be lower to reflect a lower cost of living.

3. Industry type. Each industry has its standards for pay and compensation. Fierce competition in general transportation and logistics may drive salaries lower. Positions at pharmaceutical companies tend to command high pay for drivers and managers, as an example.

Fleet Manager Bonus Pay, Benefits, And Extra Compensation

We’ve discussed the average salary for a fleet manager in the United States by examining public job postings and estimates provided by job aggregator websites.

However, these postings only cover the annual salary, not extra compensation. Fleet managers in the United States can expect roughly $8400 in additional yearly compensation. [3]

• Benefits and Social Security. Benefit payments for healthcare, 401K price matching, and Social Security comprise the majority of extra pay for fleet managers.

• Bonus and overtime. These are additional payments for hours worked over the posted salary. Annual bonuses are typically tied to good performance.

• Non-production bonuses. This is any form of bonus compensation not tied to meeting production or sales goals or specific benefit plans. Most car allowances are categorized as such.

Fleet Manager Specialists By Vehicle Type

While most fleet managers will work with large fleets of commercial automobiles, other more specialized fleet management positions exist.

If you live in a medium-to-large city, odds are your municipal government runs a public transit program. I live within 500 meters of three ample storage and maintenance facilities that rotate and service the trains, subway cars, and buses that comprise my home city’s public transit network.

While only one senior fleet manager is responsible for the entirety of the transit agency’s fleet, each of these railyards or bus terminals will have its fleet manager who reports to the senior fleet manager.

Fleet managers can specialize their talents to focus on a single method or mode of transportation. As long as the company employs a fleet of vehicles, there will be a need for fleet managers with diverse talents.

These subfields require industry-specific knowledge, so if you are considering a career in fleet management, obtaining a fleet technician or other entry-level position in one of these industries is recommended to learn the ropes.

• Airline fleet management. Each air transportation company will employ a fleet manager to manage their stock of planes and jets. Smaller airports may have one fleet manager responsible for all the planes arriving and departing. Still, each airline may employ or subcontract its fleet manager at large international airports. Managing a fleet of planes requires particular technical knowledge; if you aspire to enter the industry, obtaining industry experience in the field and understanding how planes are manufactured, operated, and maintained is crucial. [4]

• Railway fleet management. Whether providing passenger travel or commercial freighting, railway companies employ fleet managers to ensure they can meet clients’ demands. Trains must be rotated and serviced regularly to prevent breakdown while on the track, as a stuck or derailed train can shut down entire commercial corridors.

• Nautical fleet management. Nautical fleet managers will have years of experience working with nautical vehicles. This position could be responsible for anything from fleets of submarines (if working for a military organization), fleets of yachts for rental, or, most commonly, managing a shipyard of tankers. The 2021 Suez Canal obstruction by the container ship Ever Given illustrates how poor fleet management can cause “ripple effect” financial consequences. [5]

Because these positions require so much specialized knowledge, they will likely command higher salaries than the average position in fleet management.

Conclusion

Fleet management is an exciting field requiring mechanical skills, a comprehensive knowledge of vehicles and logistics, and the soft skills needed to manage a team of unique and diverse individuals.

Unsurprisingly, the average pay for a fleet manager is significantly higher than the median salary in the United States, as these positions tend to be higher up the organizational chart.

People who love vehicles, mechanical repair, and complex problem-solving are a natural fit for the fleet manager role. Cardata helps fleet managers handle costs, mileage tracking, and employee compensation for some of America’s largest and most dynamic companies.

Book a demo to see how our fleet management software can lighten your load today.

Sources

[1] $53k-$117k Fleet Manager Jobs Dec 2023 | Ziprecruiter 

[2] Salary: Fleet Manager In United States 2023 | Glassdoor 

[3] Benefits Calculator | Salary 

[4] What Is Fleet Manager? | Stratos Jets Charters 

[5] How One Of The World’s Biggest Ships Jammed The Suez Canal | The New York Times